We may be basking in the first days of the summer, but energy companies are already talking about next winter’s energy prices – and like the recent temperatures, they’re going up.
Centrica, parent company of British Gas, this month warned wholesale gas prices will rise 15% on last winter. Energy Secretary Ed Davey has also said that energy prices are on an upward trajectory and are becoming increasingly volatile.
The root of the issue is the UK’s reliance on imported fossil fuels. Over 50% of the fuels we use to generate electricity in this country come from abroad – from places as far flung as Australia and Russia. And according to government reports only last year, the impact of the Arab Spring on wholesale gas prices pushed up UK household bills by 20%.
At Good Energy, all our electricity comes from Britain’s abundant renewable resources. It’s what’s helped us keep our domestic electricity prices the same since April 2009 – and we have no current plans to change this.
“The more we can shift to alternative fuels, and use energy efficiently,” says Ed Davey, “the more we can ensure that our economy does not become hostage to far-flung events and to the volatility of market forces.”