Now, more than ever, energy prices are a hot topic of discussion - and energy companies are coming under increasing criticism and pressure from the media and consumer groups.
It has been widely reported that wholesale energy costs have risen sharply; in part due to tension and conflicts within the middle-east which led a steep increase in oil prices. Since the start of the year, wholesale gas prices have increased by 40% and electricity by 30%, and they are still climbing*.
The energy industry regulator Ofgem has confirmed that energy suppliers are not actually making profits. We are also facing increases in costs such as transportation, Carbon Emissions Reduction Targets and regulatory and social obligations. Despite this, as an industry, we're investing over £200billion in major programmes to ensure the lights are kept on.
The energy market is facing some of the biggest challenges in its history - we're all going to have to make big changes if we're to maintain supply, meet environmental challenges and keep costs manageable.
*As of Monday 12th September 2011
Links:
www.npower.com/web/understandingdd/index.htm
www.energy-retail.org.uk/media/press/NERAreport.html
www.npower.com/rwenpowercr/5_responsible_business/5_2_low_carbon_economy/5_2_3_new_power_stations.html
