The voice of the energy industry

Statement on the costs of energy

"This year the energy industry will be providing much more and clearer explanations to improve the information for customers. Currently too many numbers are being used in a confused manner and we are calling on others to take part in this project.

"Energy suppliers pay the most competitive price they can for the gas and electricity they purchase. The overall costs of wholesale energy, published by Ofgem from the segmented accounts it gets from the large energy companies, include a number of costs so are not purely market prices. Also, as suppliers buy their energy ahead so its there when customers want and need it, averages in this area don't give the true picture."

Note

Gas prices reflect what is happening around the world as the UK is an importer.

Electricity is generated from coal, gas, nuclear and renewable sources and by a wide range of independent companies. It is sold on the open market and bought by the many suppliers purchasing ahead so its there when customers want and need it. Averages don't give the true picture.

 

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