Friday, 2 December 2011

Homeowners could get £100 energy bill reprieve

Energy customers could see their bills fall by £100 in the next year due to falling wholesale prices if the Eurozone collapses.
According to figures from comparison website the wholesale cost of gas has already slumped 21pc since the peak in early September. Then, it was 78.3 pence per therm. It now stands at 61.5 pence per therm. During the same period, wholesale electricity prices dropped 15pc, falling from £5.62 per Megawatt Hour to £4.79 per Megawatt Hour.

Forecasts from the site indicate that, should the euro collapse, the impact on global energy markets is likely to be similar to the period 2008-09 following the demise of Lehman Brothers' when wholesale prices crashed by 66pc. This led to two years of tentative price drops in residential energy prices with reductions of 6.9pc in 2009 and of around 5pc in 2010.

Applied to the current average annual dual fuel bill of £1,345, a 6.9pc price drop would lead to residential price cuts of £93 next year.

full article

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