Archive for December, 2014

The independent Committee on Climate Change (CCC) has released its latest projections on the impact of carbon budgets on UK energy bills, which forecasts relatively low increases in household energy bills, but higher costs for business.

According to the CCC, low carbon polices account for approximately 26% of commercial energy bills; these policies are set to increase bills by between 15-48% between 2013-30, however, with a central estimate of a 31% increase.

Despite the increasing proportion of energy costs accounted for by government policies, the CCC also found that the main cause of rising energy prices since 2004 is the increased cost of gas coupled with investment in the distribution and transmission infrastructure.

Post-2030, it’s expected that the cost of green policies will fall during the 2030s as clean energy support contracts being signed over the next five years begin to expire.

The main rationale behind the investment in low carbon energy generation is insurance against the potential costs of climate change: while green policies will add about £155 to a dual fuel household bill by 2020, the costs of not implementing these policies could be far higher.

In the meantime, the best way to offset these inevitable increases is through energy efficiency measures.

 

 

Advertisements

A survey of UK company directors has found that most anticipate electricity prices to rise by 10% during 2015.

The annual survey by theenergyst.com also found that around 75% of Directors believe that increasing non-energy costs (transmission, distribution, taxes) are of growing concern. Around two-thirds of companies have allocated increased energy budgets of 5-10% for 2015.

Other findings included concerns about supplier charging transparency, while most also reported that price certainty was of greater importance than flexible energy purchasing.

The report comes at a time when the wholesale energy markets remain at historical lows. These lows may not continue for much longer, however, with the first cold weather -induced price spikes were felt last week, raising the risk of price rises over the next few months.

1 December 2014

October 2015 Annual Gas Prices

1 December 2014

October 2015 Annual Electricity Prices