ERA response to media enquiries regarding wholesale energy price rises

8th January 2007

"Over the last three years, wholesale gas prices have soared by 170%! During this time, household gas bills have gone up 95% on average so there is a large amount that is not being passed on to the customers.  

Britain's energy suppliers buy their stock of electricity and gas years and months ahead of the day that they sell it to peoples' homes. It is this system of buying gas in advance that protected customers from possible 200% increases in gas prices last winter. This is also the reason that we have a timelag before changes in the wholesale price are fed through to customers. Let's remember, there was a substantial delay before energy suppliers passed on the increase three years ago.  

The energy suppliers are closely monitoring this situation and every company will want to be the first to cut its prices. There is also a huge range of special tariffs and schemes for vulnerable customers and people should call the Home Heat Helpline (0800 33 66 99) if they are worried about their gas or electricity bill."