With wholesale energy prices on the increase and Britain trying to meet its climate-change targets, its inevitable that household energy bills are set to increase again.
Update: 19 May 2011
British Gas has now released their WebSaver 12 energy plan, replacing WebSaver 11. With this British Gas maintain their top position for online tariffs but it is some 7% dearer than the WebSaver 11 deal. Energy prices are certainly on the way up.
If you’re looking to fix your energy prices you might like to look at the EDF Energy ‘Fixed Saver 2’ deal.
According to Centrica, who owns British Gas, the wholesale price of gas and electricity that they are having to purchase for delivery during the coming winter are some 25% higher than last year.
Diane Ray from MoneyHighStreet.com comments “Events in the Middle East and North Africa and the nuclear disaster in Japan after the tsunami, have meant wholesale gas prices have risen steeply, albeit that consumers are not yet seeing these increases in their energy bills.
On a positive, oil prices have recently fallen back slightly. If these levels are sustained then hopefully price rises to the consumer from the energy suppliers will be put on hold.”
Regardless of what happens with the oil price though, over time energy prices will rise as Britain tries to meet its climate change targets.
The Committee on Climate Change has recently suggested that Britain needs to rethink its plan for changing the energy mix over the next 20 years.
Scaling back on expensive investment in offshore wind farms and focusing on more nuclear reactors is highlighted as an alternative approach.
But as nuclear power is not a renewable source of energy it means this makes it difficult for the Government to achieve its promise of getting 15% of energy from renewable sources by 2020. And that doesn’t even consider the impact of the seeming lack of appetite amongst companies to invest in nuclear power development.
So if gas ends up being heavily relied upon as an energy source, with the economics of supply and demand coming into play, quite simply energy prices will go up.
British Gas currently has around 16 million energy accounts and with a variety online tariffs (including Websaver 11 and OnlineSaver 4) and Green tariffs supporting carbon off-setting and renewable energy, are looking to grow this number.
MoneyHighStreet.com comment: It seems certain that there is only one way energy prices are going to go and that is up. Perhaps it is time to get the best online energy plan before it’s too late?