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Energy Prices over time

The simplest way to demonstrate a price movement over a period of time is to set a base.

Using a base of' 100' to represent the energy price in 2005 we can deduce the following:

  • In 2000, at the turn of the millennium, the' price' was 80.4, 85.6 and 48.2 respectively for Coal, Electricity, and Gas.
  • In 2012, Coal had risen to 140.3 using the same methodology, Electricity to 151.6 and Gas had experienced a staggering rise of more than three times to 141.0.
  • By 2012 Coal and Gas accounted for over 65% of electricity production and the use of gas as a direct source of energy increased by 10% to 550 TWH.

Because of this, it is no wonder that the effect on business energy bills of these enormous price rises has been serious.

If we take a closer look at the market after 2010, we can see this effect borne out in the electricity price of p / kWh.

Given that raw electricity costs constitute 44 percent of the average bill in ordinary conditions, the impact of increasing prices on our bills is thus clear. The price of raw energy has increased from 4.6p / kWh to 5.4p / kWh in the three years to 2012.

Along with the manner, this peaked in April 2011 at 6.25p / kWh. It goes without saying that and rise of 17 percent over 3 years is well above the cost of headline inflation. And in just over 12 months, the peak to 2011 is a staggering 36 percent rise.

In order to put this into context, an average business energy customer would have paid £ 2.555 for their annual use of energy in 2010, this would have become £ 3,000 by 2013. And if you had contracted in 2011 it would have cost your business £ 3,470 at the incorrect moment. An increase of almost £ 1,000. Big numbers.

The rise in prices looks almost linear, taking a remote view, so it's easy to believe that if you haven't got into the bottom, you've lost out. However, there are possibilities to reach an advantageous agreement even in a growing market. The wise strategy is not to fear that prices are only rising, but to strike when there is a deal to be accomplished and worth doing in the context of the general industry.

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