Gas and Electricity Prices: Now and in the Future

Gas and electricity prices are set in part by the global market. The cost of transporting gas from one country to another and the cost and availability of fuel for electricity generation are contributory factors. Massive increases in the cost of oil, gas and coal on global markets have resulted in similarly sharp rises in domestic gas end electricity prices in the United Kingdom in 2008 and further increases – possibly between 30% and 40% according to some estimates – are predicted by the end of the year. Indeed gas prices to the consumer from some energy providers are already lower than the wholesale price of gas and this situation clearly cannot continue.

Oil prices have almost doubled in the past 12 months and with North Sea reserves dwindling Britain is more reliant than ever on imported oil and gas. The problem is exacerbated by the limited storage capacity for gas in Britain compared to some other countries which means that gas cannot be bought cheaply during the summer for consumption during the winter.

The situation regarding gas prices is unlikely to improve in the next decade or so and a similar comment applies to electricity prices. Reliance on imported gas is likely to increase resulting in further price rises and the electricity generation sector is likely to face very tight margins. It may be that government intervention in the gas and electricity markets – in the form of subsidies, etc. for consumers – is necessary in the future. In any case renewable energy sources such as solar hot water heating are likely to become more prominent in the domestic energy market.

Despite the deregulation of the gas and electricity markets in the late 1990s, British Gas remains a popular provider of both fuels in the United Kingdom, with 11 million gas customers and 5 million electricity customers. British Gas Services – formed in 1994 to specialise in the installation and servicing side of the business – is likewise the leading installer of domestic gas central heating systems in the United Kingdom.

British Gas offers a range of standard and online payment tariffs, together with a number of boiler and central heating system service plans, all of which are backed by call centres that are available 24 hours a day, 7 days a week; and a nationwide team of more than 5,000 academy-trained engineers.

The “Click Energy 5″ online tariff, for example, offers substantial savings to “dual fuel” customers – in other words, customers who are supplied with gas and electricity – when compared to traditional offline cash or cheque payments, with the additional benefits of paperless billing, and no cancellation charges.

Similarly, the British Gas “Homecare” programme provides various levels of service cover – from a boiler and its controls, to a complete central heating system, plumbing and drains – for a graduated fixed fee which includes parts and labour. This service is, however, completely independent of gas or electricity supply so that if you should wish to move away from British Gas as an energy supplier at any time your cover is not affected.

Our friends over at the Boiler Service Centre have updated their site to include a new section dedicated to boiler breakdown cover and central heating insurance, this will be a popular section with more and more providers to choose from it’s difficult to know which to go for.

They’re currently looking for boiler servicing companies to feature so don’t delay and get in touch to make the most of their FREE beta program!