Supply Market Indicators
In our regular monthly review of Ofgem’s Supply Market Indicators we focus on September’s release from the energy regulator.
The September 2014 SMI from Ofgem reported that:
- They estimate that the average annual dual fuel bill has fallen slightly for the next 12 months at £1,329 from last month’s £1,330 estimate
- They estimate average annual consumption will decrease by 2% over the coming year
- Gas bills will be £741 per annum on average whilst electricity bills will be lower at £609
- That wholesale prices have fallen since the start of 2014 with the gas price 15% lower and the electricity price 5% lower
- That wholesale prices will make up around 45% of the average dual fuel bill
- That network costs will once again increase in the month to £302 of the average bill over the next 12 months from £301 in August
- That environmental and social obligation costs will increase to £86 from £85 last month and will continue to add 6% to the average customer bill
- That supplier operating costs will remain at a forecast level of £174 or 13% of the average dual fuel bill
- That Supplier pre-tax margins (profit) will be remain at £102 or 8% of an annual duel fuel bill over the coming 12 months.
The headlines from the September SMI therefore are:
- Consumption DOWN
- Wholesale energy costs DOWN
- Network costs UP
- Environmental and Social costs UP
- Supplier costs LEVEL
- Supplier profit LEVEL