Energy UK's statement on wholesale prices
Energy UK has issued a statement on wholesale prices.
Lawrence Slade, chief executive of Energy UK, said:
“It is not the case that energy tariffs have gone up. There are many deals available which are £160 cheaper than this time last year. It always pays to shop around and suppliers are making it quicker and easier for customers to find the deals that are right for them. The energyhelpline numbers are selective and wholly misleading, suggesting energy companies only buy energy today for use tomorrow. Instead they buy up to two years ahead to minimise the risk of price shocks and keep prices stable for customers.”
Notes to editors:
- Energyhelpline numbers are based on short term spot/day ahead prices. These are the most volatile and show the greatest swings so the comparative drop over the past two years looks much more. Suppliers tend to buy up to two years ahead according to their own strategies to ensure stability for their customers. According to EUK data the average of all contracts [comparing winter 12-13 to winter 14-15 and summer 13 to summer 15 on the following contracts; spot, Month +1/+2, quarters +1/+2, seasons +1/+2/+3/+4] has only declined by 6% for baseload electricity and 16% for gas. This would coincide very roughly with a 8% drop in costs and a 2% drop in costs on gas and electricity bills respectively. For more information read the latest EUK wholesale market report.
- From January 2014 to August 2015 the average top 10 dual fuel bill went down by over £160.