Call for cuts in energy bills as Grexit fear sees gas prices drop

ENERGY companies are facing fresh calls to cut prices after new data showed the threat of Grexit had helped push wholesale gas and power prices to their lowest level in five years.

Low oil prices, strong supplies and the threat of Greece leaving the euro all contributed to gas prices over the past three months averaging their lowest level since the first quarter of 2010, according to analysis by price reporting agency ICIS.

Electricity prices – which are influenced by gas prices – were at their lowest since the second quarter of 2010, it said.

“UK energy prices have also been pushed down by concerns over Greece exiting the euro. As the value of the euro has fallen relative to sterling, UK gas has become more expensive for European buyers, and is therefore less in demand,” ICIS said.

“As UK gas prices have fallen, UK power prices have also been affected.”

Ann Robinson, the director of consumer policy at switching website uSwitch.com, called on energy companies to cut their prices in light of the lower costs and suggested they could afford double-digit reductions.

“Wholesale energy costs make up around half of our bills, so why on Earth are hard-pressed consumers not seeing the full benefits of lower wholesale prices?,” she said.

Although the Big Six suppliers all cut their prices earlier this year, she said these reductions were “mere token gestures”.

Despite the current low prices, ICIS warned that it was “uncertain” whether prices would keep falling as the UK had less gas in storage than last winter and problems with supplies in the rest of Europe would see more demand for UK gas to be exported.