Monthly Archives: June 2008

Where did the 40% hike in energy bills come from?

In our previous update of 6 June 2008 we drew attention to the fact that wholesale gas and electricity prices had then reached yet another record high on the back of record oil prices.
 
We wrote …”To restore the balance between wholesale and retail prices, retail gas bills will need to rise by over 40% and retail electricity bills by over 20% in the next 12 months.”
 
That 40% figure seems to have caught the imagination and is now doing the rounds as the expected increase (according to unnamed industry sources). The main energy suppliers are even today being grilled by the Commons Select Committee over their pricing intentions for this winter. Continue reading

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Wholesale energy prices jump another 5%

The surge in global energy prices also spilled into wholesale gas and electricity prices in the UK. Forward wholesale gas prices increased by another 5.3% today (Friday 6th June) taking the increase since the beginning of the year to 76%.
 
According to our calculations wholesale gas prices are now higher than retail gas prices even before allowing for the substantial costs of transportation, metering and billing. To restore the balance between wholesale and retail prices, retail gas bills will need to rise by over 40% and retail electricity bills by over 20% in the next 12 months. Continue reading

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