April 13, 2016
Wholesale energy costs are currently at their lowest price for a decade, prompting further calls for a cut in household energy bills.
ICIS Power Index have said that the cost of gas is at its lowest for ten years, with electricity costs at a nine-year low.
Despite this, the "Big Six" energy suppliers have cut gas bills by just over 5% this year, and there has been no drop in electricity charges.
However the industry points out that wholesale costs make up just 42% of a typical dual fuel bill.
Energy suppliers also buy power up to two years in advance, so what they pay for power does not necessarily reflect the current cost.
The below chart shows the breakdown of a dual fuel bill as of April 2015:
It has been a mild winter, so ICIS Power Index have argued that may be a reason for the declining price of wholesale energy but this report suggests that the token price cuts energy suppliers announced at the beginning of the year are not enough. Suppliers should be dropping the gas and electricity prices customers pay by considerably more.
You can find out how much you could save on your energy bills with our free and impartial comparison and switching service. You can compare online by clicking here or by calling one of our energy advisors on 01259 220000.
Posted on April 13, 2016 at 11:33 AM