Wholesale utility prices fall but consumers could still need debt advice
Wholesale utility prices fall but consumers could still need debt advice
- Thursday, 3 September 2009Ofgem has called for utility providers to explain their decision to increase prices despite a fall in wholesale costs.
Data from ICIS Heren has revealed that the price of wholesale gas averaged 25.5 pence between April 1st and August 24th of this year, less than half the figure for the same period a year earlier.
The results could be difficult for some UK consumers to take if higher prices are putting them into financial difficulty and in need of
debt advice.
Commenting on the wholesale price reduction, spokesperson for ICIS Heren Ed Cox said: "It is clear that wholesale prices have come down faster than retail prices in the past year.
"This is why the regulator Ofgem has asked the major utilities to explain their pricing policy. Prices for wholesale gas have fallen to below half the level they were at this time last year."
Alistair Buchanan, Ofgem chief executive, has told the 'big six' energy providers that they "owe it to consumers" to explain their pricing decisions.

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