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Energy prices

Published Wednesday, January 27, 2016

The price of domestic gas and electricity has been relatively stable over the past five years after increasing steadily through 2000-2008. There have been some price cuts over the past few years, but these have been smaller than the price rises. The cost of heating oil has fallen over the last three years with particularly large falls in the most recent year. In January 2016 heating oil was 22.81 pence per litre compared to the peak price of 64.5 pence per litre in February 2013.

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The price of domestic gas and electricity has been relatively stable over the past five years after increasing steadily through 2000-2008. There have been some price cuts over the past few years, but these have been smaller than the price rises. The cost of heating oil has fallen over the last three years with particularly large falls in the most recent year. In January 2016 heating oil was 22.81 pence per litre compared to the peak price of 64.5 pence per litre in February 2013.

Domestic energy suppliers have been under pressure for some time to cut prices in response to drops in wholesale energy prices. In the medium to long term the pressures on price appear to be mixed as companies consider the reduction in wholesale price as well as rising infrastructure costs. The most reliable way consumers to reduce their bills in the medium to longer term is through energy efficiency improvements.

This note focuses on trends in the domestic market - the costs of gas, electricity and other fuels used in for heating and the impact on fuel poverty. This note does not look at road fuel prices.

Commons Briefing papers SN04153

Author: Noel Dempsey

Topics: Coal, Electricity, Energy, Oil, petrol and natural gas

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