The Government recognises the importance to businesses and households of having access to an affordable, secure and sustainable supply of energy. The Yellowhammer Reasonable Worst Case Planning Assumptions are not based on a single forecast of expected prices. Many factors impact electricity prices including factors such as fuel prices, exchange rates and generation mix.

We expect that any change in electricity prices in Great Britain as a result of changes to interconnector trading arrangements would fall within the normal range of market volatility.

We assume in this Reasonable Worst Case Planning Assumption that the Single Electricity Market (SEM) shared between Northern Ireland and Ireland may not be able to continue. If this is the case we would expect higher and more volatile electricity prices in Northern Ireland as a result of losing benefits from the more efficient, shared market. By far the best outcome for electricity in Northern Ireland is to maintain the SEM and the Government remains committed to seeking to maintain the SEM in any scenario.

HM Treasury routinely monitors economic conditions and risks, and the Government has a range of mechanisms available to support vulnerable people from price rises in food and fuel.

Furthermore, officials estimate the direct impact of spending decisions on household living standards, and this is a central consideration when allocating public funds.

The Department is committed to regular and transparent reporting on the price of gas for UK consumers and currently publishes a price comparison with EU member states on a bi-annual basis. The latest statistical reports from this series are available here: https://www.gov.uk/government/statistical-data-sets/international-domestic-energy-prices

The UK has some of the lowest domestic gas prices in the EU. Average prices paid by consumers for the period January to June 2018 were the second lowest in the EU15 and were 31 per cent lower than the median average price.

Recent figures also show that gas prices for UK consumers has been consistently cheaper than the median average for all EU member states (EU28) since 2016 currently peaking at 15.5% cheaper in the first half of 2018.

These figures are for average domestic gas prices including taxes paid for by UK domestic consumers, with a consumption level of the EU’s definition of a ‘medium’ amount of gas per annum (5,557 – 55,557 kWh).

The strike prices for all energy projects awarded a Contract for Difference in the UK since 2012 are published on the Government’s website.

The strike prices awarded in CFD Allocation Round 2 are published at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/643560/CFD_allocation_round_2_outcome_FINAL.pdf.

The strike prices awarded in CFD Allocation Round 1 are published at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/407059/Contracts_for_Difference_-_Auction_Results_-_Official_Statistics.pdf.

The strike prices awarded to FIDER enabled CFD projects are published at: https://www.gov.uk/government/news/record-investments-of-40-billion-in-renewable-electricity-to-bring-green-jobs-and-growth-to-the-uk and the details of the projects awarded those contracts are published at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/305781/Successful_Projects.pdf.

The strike price awarded to Hinkley Point C is available at: https://www.gov.uk/government/collections/hinkley-point-c.

The Department aims to ensure the continuity of supply of medicines while ensuring that the National Health Service obtains value for money from its spend on medicines.

The costs of branded medicine are controlled by the Pharmaceutical Price Regulation Scheme and the statutory scheme for branded medicines. For unbranded generic medicines the Department relies on competition to keep prices down. In primary care community pharmacies are incentivised to source products at the lowest possible cost and in secondary care, competitive tenders ensure value-for-money to the NHS.

Where competition does not appear to be working, the Department alerts the Competition and Markets Authority (CMA). Where the CMA finds that a company has breached competition law by charging excessive prices it can impose a fine as well as order companies to reduce their prices. In those instances the Department will seek damages and invest that money back into the NHS.

Investigations and infringements decisions by the CMA are publicly available on the CMA’s website.

The Department aims to ensure the continuity of supply of medicines while ensuring that the National Health Service obtains value for money from its spend on medicines.

The costs of branded medicine are controlled by the Pharmaceutical Price Regulation Scheme and the statutory scheme for branded medicines. For unbranded generic medicines the Department relies on competition to keep prices down. In primary care community pharmacies are incentivised to source products at the lowest possible cost and in secondary care, competitive tenders ensure value-for-money to the NHS.

Where competition does not appear to be working, the Department alerts the Competition and Markets Authority (CMA). Where the CMA finds that a company has breached competition law by charging excessive prices it can impose a fine as well as order companies to reduce their prices. In those instances the Department will seek damages and invest that money back into the NHS.

Investigations and infringements decisions by the CMA are publicly available on the CMA’s website.

The table below shows the top five individual medicines and chemicals that have shown the highest increase in price over the last 10 years for Net Ingredient Cost (NIC) per prescription item and NIC per quantity. Prescription medicines/chemicals have only been included where there was prescribing in both 2006 and 2016.

This is based on Prescription Cost Analysis (PCA) data. PCA data is based on analysis of all prescriptions dispensed in the community i.e. by community pharmacists and appliance contractors, dispensing doctors, and prescriptions submitted by prescribing doctors for items personally administered in England. PCA data do not cover drugs dispensed in hospitals, including mental health trusts, or private prescriptions.

Costs vary over time due to numerous factors including medicines going off patent and becoming available generically, unlicensed medicines becoming licensed medicines, shortages, the level of competition for generic medicines, as well as centrally agreed pricing schemes such as the Pharmaceutical Price Regulation Scheme.

The Department is working closely with the Competition and Markets Authority on a number of investigations into unwarranted price rises of unbranded generic medicines. Where companies have breached competition law, we will seek damages and invest that money back into the National Health Service.

Source: Prescription Cost Analysis

Notes:

¹NIC is the basic cost of a drug. It does not take account of discounts, dispensing costs, fees or prescription charges income, so the amount the NHS spent will be slightly different.

²Prescriptions are written on a prescription form known as an FP10. Each single item written on the form is counted as a prescription item.

The Home Office has used the conclusions of the research commissioned by the Government and carried out by the University of Sheffield alongside a range of sources of information to develop legislative proposals related to alcohol pricing.

Home Office Ministers and officials have meetings with a wide variety of international partners, as well as organisations and individuals in the public and private sectors, as part of the process of policy development and delivery.

Details of these meetings are passed to the Cabinet Office on a quarterly basis and are subsequently published on the Gov.uk website:

http://data.gov.uk/dataset/ministerial-data-home-office

DECC publishes data on average gas and electricity bills in major towns and cities in its Quarterly Energy Prices publication, in table 2.2.3 (electricity) and 2.3.3 (gas). These tables can be found at the following link, with data going back as far as 1998:

https://www.gov.uk/government/statistical-data-sets/annual-domestic-energy-price-statistics

These are based on assumed consumption levels of 3,300 kWh per year of electricity, and 18,O00 kWh per year of gas. Data is collected by Public Electricity Supply (PES) region for electricity and Local Distribution Zone (LDZ) for gas. However, because these differ in coverage, data are reported for a major town/city within the area.

Ofgem's Retail Market Review proposals will ensure that all consumers are on the cheapest tariff in line with their preferences.

The Government have also introduced clauses into the Energy Bill so that it can act to implement these important reforms in the event that Ofgem's proposals are frustrated or unduly delayed.

The Government are ensuring that millions of households will be moved to the best energy deal for them, by summer 2014 customers will be on the cheapest tariff that meets their preferences.

The effects of alcohol minimum unit pricing on alcohol producers' and retailers' turnover as well as on the revenue raised by HM Revenue and Customs will be driven by the level of per unit price of alcohol as well as by the consumers' behavioural response. The Government will consult on the level to be set for minimum unit pricing in the forthcoming months.

The analysis of the effects of introducing a minimum per unit price for alcohol will be performed during the consultation process to inform the policy impact assessment.

Alcohol sales do not fall within any of the excepted categories from the standard rate of VAT under EU law, and therefore must be taxed at the standard rate. There is no scope for a rate that is higher than the standard rate, which in the United Kingdom is 20%. The Government has committed to introducing a minimum unit price for alcohol and will be consulting on the level to be set in the coming months.