The Hereafter Of Unloose Energy Prices: A Prediction Of 2014 Together With 2015 Prices

Energy has been the centre of the political agenda since Ed Miliband released his disputation virtually freezing liberate energy prices dorsum inward 2013. It was therefore announced that the Big Six were rising liberate energy prices all over the UK. This has led to a growing concern over the cost paid for electricity together with gas.  With tiresome economical growth together with no rising wages, businesses together with households accept been worried over their liberate energy cost together with if they tin instruct out the lights on. Ofgem are looking into the contest of the Big Six, amongst the possibility of breaking them up. This has led to some of the Big Six stating that this volition hinder investment into cleaner together with to a greater extent than renewable energy. They went on to field that this could atomic number 82 to an liberate energy compaction together with blackout Britain.  The adjacent worry for everyone is how liberate energy prices volition shape upwards inward the years to come?

The regime released a document which detailed the cost non-domestic consumers are paying for their energy. This volition hold upwards used equally a base of operations to predict 2014 together with 2015 liberate energy prices. However, these predictions are alone estimates of what could hand if nosotros proceed the means nosotros are. There volition too hold upwards a await at how liberate energy prices differ depending on the size of the business.

Electricity

2012

In Q4 2012 really small-scale organisations were paying on average 12.92 pence per kWh. Comparing this to an extra large organisation, which was paying to a greater extent than or less 8.43 pence per kWh, a really small-scale arrangement was paying to a greater extent than or less 47% more. This is due to larger organisations consuming to a greater extent than electricity than their smaller counterparts.

2012 (Pence Per kWh)
Very Small Organisation	Extra Large Organisation
12.92	8.43
47% Increase from Very Small to Extra Large

2013

In Q4 2013 a really small-scale arrangement was paying on average 14.45 pence per kWh. Comparing this to an extra large organisation, which was paying to a greater extent than or less 8.81 pence per kWh, a very small-scale arrangement was paying to a greater extent than or less 64% more.

2013 (Pence Per kWh)
Very Small Organisation	Extra Large Organisation
14.45	8.81
64% Increase from Very Small to Extra Large

Comparing 2013 together with 2012 prices for electricity you lot tin encounter that at that topographic point has been an increment inward price, primarily for really small-scale organisations. Looking at the average cost for electricity over 2012 together with 2013 Q4 nosotros tin encounter how much the cost has risen inward i year.

Year (Q4)	Price	% (Increase/Decrease)
2012	9.46	N/A
2013	10.16	7.4

From the information collected to a higher house nosotros tin therefore predict the designing of electricity prices for Q4 inward 2014 together with 2015. This volition hold upwards based upon the same pct increment over the coming years.

Year (Q4)	Percentage Increase	Price
2013	N/A	10.16
2014 (Predicted)	7.4%	10.91 (Predicted)
2015 (Predicted)	7.4%	11.72 (Predicted)

Therefore, if prices were to increment yr on yr yesteryear the same pct equally betwixt 2012 together with 2013, you lot would encounter a 23% increment inward electricity cost yesteryear 2015, from 2012 levels. This is an average cost across all sizes of organisations. (Smaller organisations pay to a greater extent than together with larger organisations pay significantly less for pence per kWh).

Gas

2012

In Q4 2012 really small-scale organisations were paying on average 3.768 pence per kWh. Comparing this to a really large arrangement which was paying to a greater extent than or less 2.286 pence per kWh, really small-scale organisations were paying to a greater extent than or less 64% more.

2012 (Pence Per kWh)
Very Small Organisation	Extra Large Organisations
3.768	2.286
47% Increase from Very Small to Extra Large

2013

In Q4 2013 a really small-scale arrangement was paying on average 3.920 pence per kWh. Comparing this to a really large organisation, which was paying to a greater extent than or less 2.314 pence per kWh, really small-scale organisations were paying to a greater extent than or less 69% more.

2013 (Pence Per kWh)
Very Small Organisation	Very Large Organisations
3.920	2.314
69% Increase from Very Small to Very Large

Comparing 2013 together with 2012 prices for electricity you lot tin encounter that at that topographic point has been an increment inward price, primarily for really small-scale organisations. Looking at the average cost for electricity over 2012 together with 2013 Q4 nosotros tin encounter how much the cost has risen inward i year.

Year (Q4)	Price	% (Increase/Decrease)
2012	2.778	N/A
2013	2.929	5.4

The information to a higher house shows that inward i yr the average gas cost has increment yesteryear 5.4%. Using this information nosotros tin therefore predict average prices for 2014 together with 2015 Q4.

Year	Percentage Increase	Price
2013	N/A	2.929
2014 (Predicted)	5.4%	3.087 (Predicted)
2015 (Predicted)	5.4%	3.254 (Predicted)

Therefore, if prices were to increment yr on yr yesteryear the same pct equally betwixt 2012 together with 2013, you lot would encounter a 17% increment inward electricity cost yesteryear 2015, from 2012 levels. This is an average cost across all sizes of organisations. (Smaller organisations pay to a greater extent than together with larger organisations pay significantly less for pence per kWh).

Conclusion

The predicted cost increases are based on the electrical flow province of affairs together with estimated results. These volition hold upwards champaign of written report to alter from the external environs such equally weather, climate change, political discourse together with merchandise negotiations.

To minimise cost increases, nosotros take away to await at the means nosotros piece of employment together with origin energy. Many improvements are already underway merely the time to come is uncertain together with nosotros tin all proceed to brand changes for the better.

All information was sourced from the regime together with tin hold upwards institute here: Non-Domestic Energy Prices