Ofgem figures show energy bills continue to rise rapidly
- 16 May 2012, 15:18
- Ros Donald
Ofgem has published
new figures showing that energy bills continue to rise
The figures also show that wholesale energy costs continue to
make up the biggest chunk of consumer energy bills, expecially in
the gas market - in 2012, wholesale gas and electricity costs made
up 48 per cent of the average consumer's energy bill.
Ofgem produces its
Supply Market Report every year, examining
the "difference between wholesale costs and standard tariff bills".
According to Ofgem's estimates, wholesale energy costs on dual fuel
use - which accounts for the majority of UK consumers - rose £80,
from £555 in 2011 to £635 this year. At the same time, the average
customer energy bill rose £140, from £1,170 to £1,310.
The amount consumers pay for gas continued to rise. The
average gas bill in 2012 was £780 in May 2012, compared to £665
last year, with the wholesale cost of gas rising from £340 to £400
- despite the fact that companies used strategies to even out
wholesale prices such as buying fuels in advance. Wholesale
electricity costs are smaller, but also rose from £220 last year to
Ofgem also provides figures for how much other costs
including VAT add to fuel bills. On a dual fuel bill, an average
consumer paid £475 in 2011, rising to £515 in 2012 or 39 per
Ofgem doesn't break down these costs into the different
charges the government levies on consumer fuel bills. But according
to material that explains the methodology, "environmental and
social supplier obligations" - which include money to encourage
renewable technologies, discounts for the fuel poor and money for
other green measures - now make up around
seven per cent of a typical dual fuel bill,
or about £91.
We have previously noted how these costs have been inflated
in the press - the new figures show that Ofgem's estimates are
still well short of figures quoted in the Dail Mail which
suggesting households are paying up to
£200 for green policies.
The report is intended to produce an estimate of the profit
energy companies can expect to make from a typical energy customer
each year. This year the "net margin" or average profit per
customer rose from last year's £10 to £30.