Electricity: Prices
(asked on 16th June 2015) - View Source
Question
To ask the Secretary of State for Energy and Climate Change, what forecast her Department has made of (a) wholesale and (b) retail electricity prices in (i) 2020, (ii) 2025 and (iii) 2030 as an absolute value in pounds sterling.
In September 2014 DECC published a set of updated energy and emission projections. [1] Annex M of that publication presents the Department’s projections of wholesale and retail prices for a range of users under varying assumptions of fossil fuel prices and economic growth.
Based on that publication, Table 1 below presents the wholesale electricity price projections for low, central and high fossil fuel scenarios. Table 2 below presents retail electricity price projections for households under low, central and high fossil fuel scenarios.
Projections for other users (industrial and service sectors) can also be found in Annex M at the link provided. Updated projections will be published in the autumn.
Table 1: Wholesale electricity price projections under varying fossil fuel price scenarios. £/MWh, (real 2014 prices) | |||
Fossil fuel price scenario. | 2020 | 2025 | 2030 |
Low | £43 | £49 | £51 |
Central | £55 | £69 | £73 |
High | £74 | £85 | £93 |
Table 2: Retail electricity price projections for households under varying fossil fuel price scenarios. £/MWh, (real 2014 prices) | |||
Fossil fuel price scenario. | 2020 | 2025 | 2030 |
Low | £184 | £201 | £206 |
Central | £193 | £213 | £217 |
High | £218 | £229 | £234 |
[1] DECC (2014) ‘Updated energy and emission projections 2014’: Available here: https://www.gov.uk/government/publications/updated-energy-and-emissions-projections-2014