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Energy: Prices

Answer

DECC published estimates of average annual household energy (gas and electricity) bills in 2011, 2020 and 2030 alongside the Annual Energy Statement (AES) in November 2011. This analysis is available online at:

http://www.decc.gov.uk/en/content/cms/meeting_energy/aes/impacts/impacts.aspx

DECC has committed to updating these estimates annually as part of the AES.

The main driver of movements in energy bills over the next few years is likely to remain fossil fuel prices, which are volatile. The estimated changes in energy bills over time presented in this report are a reasonable assessment of the trends over the period given the assumptions about future fossil fuel prices and the estimated impact of climate change and energy policies on prices and consumption. In reality, however, other factors will also drive changes in energy bills (largely through consumption), most notably annual changes in weather and consumer tastes. For the purpose of this analysis, the impacts of these other factors have not been captured in our energy bills estimates.

The following table presents a time series of estimated average household energy bills (in real 2010 prices) in each year from 2012 to 2016 consistent with the published analysis and based on DECC's central scenario for fossil fuel prices. These figures also include the estimated impact of Government policies consistent with this scenario:

Estimated average household energy (gas and electricity) bills (real 2010 prices)
	Average household energy (gas + electricity) bills (real 2010 prices) (£)
2012	1,320
2013	1,363
2014	1,408
2015	1,402
2016	1,402

Secondary information

Type

Written question

Reference

117654; 548 c607W

Session

2012-13

Subjects

Energy Households Prices

Contains statistics

Yes

Link

View this Written question on www.publications.parliament.uk