Rising power prices

Scottish Power became the first of the six major suppliers to disclose a new round of price rises. It told five million customers that gas and electricity bills would go up by 19 per cent and 10 per cent respectively.

The increase, which will take effect on Aug 1, will push households’ average annual bills to almost £1,400; the highest level ever.

So, anyone actually know how much of this is deliberately planned by the government?

Some of it certainly is: the renewables obligation and all that, those subsidies to solar, wind and so on.

But does anyone have the figures on exactly how much?

4 thoughts on “Rising power prices”

  1. No, but with carbon taxes or similar these are just the first round.

    Today, trucks pay 30% more on Spanish toll roads. Just because. Make them drive more carefully? or maybe just increase the cost of goods??

  2. Can you be a bit more specific about what you are after? I think I know where to find the figures, but are you asking for what proportion of the rise in bills comes from increases in government imposed costs like the RO?

    Tim adds: All government costs including the ROs, yes, that would be nice please.

  3. JustAnotherTaxpayer

    The DECC levies are about £2.1bn this FY. Let’s estimate a 50/50 split on energy use (ex-transport) between business and households, and 26 million households – back of envelope says £40 per household.

  4. There’s so many bits and pieces here that it’s difficult to give a full figure. OfGem has lots of it. The value of the RO is given in their annual reports:

    http://www.ofgem.gov.uk/Sustainability/Environment/RenewablObl/Documents1/RO%20Annual%20Report%202009-10.pdf

    Last FY it was £1.1 billion.

    The FIT is harder to quantify but looks like being £4mil per quarter:
    http://www.ofgem.gov.uk/Sustainability/Environment/fits/Newsletter/Documents1/Feed-in%20Tariff%20%28FIT%29%20Update%20Newsletter%20Issue%203.pdf

    There’s plenty of other factors here of course, like the Climate Change Levy and so on.

    Mind you, it looks like that gas price rise has very little to do with UK Government intervention: http://img.en25.com/Web/ICIS/CHHNT_Gas_TTFApril11.pdf

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