“Although Oil is down, political issues and demand are inflating rates, wholesale energy costs have not come down, operating cost are higher (Smart meter mandatory roll out, transportation, green costs as well as distribution costs have increased across the board.) Suppliers were all buying fuel in advance and would have bought electric and gas when prices were higher. A combination of factors are likely to boost energy prices in 2015. These include an increasing dependence on gas imports, environmental targets and the need to replace ageing power stations. Reliance on Russia/Ukraine and other countries known for their political volatility is on the increase. ” Embargoes” simply restrict supply and increase demand and add fuel to the fire.
Rigid European Union environmental laws and the closure of oil and coal power stations are cutting off supplies and slashing spare capacity in the UK power system, an Ofgem report said. The regulator predicted that by 2015/16 there will be just a 4 per cent buffer in UK energy supplies, compared to the current level of 14 per cent spare capacity.
It was spawned out of the Brussels obsession with weaning all European countries off coal power. But because of Britain’s rich mining heritage, it is a measure that hits the UK harder than any other EU member. Nine of the UK’s coal and oil-fired power stations are destined to shut by 2015. This represents about 15 per cent of the UK’s total generating capacity. This would leave Britain dependent on imported gas – which comes with a notoriously volatile price tag”
2010 to 2014 2011 to 2014 2012 to 2014 2013 to 2014 2014 to 2015
14.49% 8.84% 5.48% 2.36% 2.24%