Energy firms’ costs ‘hit five-year low’
14 January 2016
From the section Business
Wholesale gas and electricity prices in the UK hit a five-year low at the end of 2015, according to latest research by energy market analysts.
The cost of energy on the wholesale market tumbled to £36.76 per megawatt hour on the Power Index, compiled by market information provider ICIS.
The causes were a mild winter and lower global commodity prices, ICIS said.
Pressure is mounting on the UK’s big six energy suppliers to cut their prices in line with falling costs.
Amber Rudd, who took over as energy secretary after last year’s general election, wrote to the big six soon afterwards to question them about whether their prices were reflecting the wholesale market.
But the energy firms have said they are operating in a highly competitive environment.
‘Over the odds’
British Gas cut its gas prices by 5% in August, but the other five big firms did not follow suit.
Northern Ireland’s second-largest electricity supplier, SSE Airtricity, announced last week that it was cutting prices by 1.3%.
Source:: BBC UK