Energy Bills Should Be Slice By 'Further ten%'

48
Source:   —  April 13, 2016, at 6:17 PM

Market analysis shows wholesale energy costs at nearly 10-year lows, prompting further claims households are being over-charged.

Energy Bills Should Be Slice By 'Further ten%'

Household energy suppliers are facing calls for bills to fall a further ten percent after analysis of wholesale prices showed costs at a near ten-year low.

The cost of raw energy averaged nine-year lows over the first quarter of two thousand sixteen, according to market data firm ICIS, with Brent crude oil falling below $30 a barrel in Jan amid a refusal by major producers to slice production despite low demand in the global economy - .

ICIS said gas prices - linked to the fortunes for oil - were affected by a mild winter but more gas-fired generation kept prices stable.

Electricity prices, it added, fell less than gas as traditional generation was squeezed by more renewable capacity.

Its head of power, Zoe Double, said: "Some older coal-fired plants closed during Q1 (first quarter) two thousand sixteen, so with less flexible supply available to the market, market participants are reluctant to sell power for winter delivery at lower prices because of the risk of shortages."

The price comparison site uSwitch was among groups suggesting that households were being short-changed.

Its director of consumer policy, Ann Robinson, said: "Whilst any reduction is welcome, the fact remains that the average Huge Six dual fuel bill has fallen a mere 5.7 percent since the start of last year.

"Given record-low wholesale costs, suppliers should do the right thing and reduce standard tariffs by a further 10%."

Pressure remains on the industry after a two-year Contest and Markets Authority investigation recommended price caps for assailable customers and more assistance for households to switch accounts.

It said then that .

Energy industry body, Energy UK, said: "Energy companies are bringing down their prices with cheaper tariffs launched nearly every week.

"Since January two thousand fourteen the cheapest tariffs have fallen by around £200. There are presently over fifty deals below £1.000 being offered by thirty-seven suppliers operating in the market.

"Wholesale prices create up less than half of the average bill and the majority of the rest falls exterior suppliers' control so there will always be a disagreement between wholesale price falls and what customers actually pay."

 

READ ALSO
Vote Leave Designated Official Anti-EU Campaign

Vote Leave Designated Official Anti-EU Campaign

The campaign group, backed by Michael Gove and Boris Johnson, will presently be able to spend up to £7m in the run-up to the referendum.

63
China Firms&#thirty-nine; $1.3tn Bank Loan Risk - IMF

China Firms&#thirty-nine; $1.3tn Bank Loan Risk - IMF

There is a warning that the slowdown in China's economy is placing more corporate debt at risk of default.

91
Business slice back on stockpiles as sales fell again

Business slice back on stockpiles as sales fell again

Business inventories dropped 0.1 percent, matching the decline in January, the Commerce Dept reported Wednesday. Sales fell 0.4 % in Feb after an even bigger 0.8 % decline in January.

45
Letters: Goldman Sachs, traffic tickets, low wages, Trump’s contributions

Letters: Goldman Sachs, traffic tickets, low wages, Trump’s contributions

From the beginning, the point has been missed that there are many homeowners who lost a tremendous quantity of equity in their homes due to the mortgage meltdown.

72