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Household electricity prices decrease

The UK energy regulator Ofgem has reported that the New Electricity Trading Arrangements (NETA) has performed well against its objectives. Ofgem says that the 40% reduction in wholesale electricity prices over the last four years is slowly filtering through to domestic customers. Households are paying 3.5% less for their electricity, with the opportunity for average decreases of 15% if they choose to switch to suppliers offering the best deals.

However, consumer groups such as Energywatch are not convinced. They claim that suppliers’ margins have increased under NETA, saying that wholesale prices have fallen by 20% since NETA was introduced in March last year, but that domestic bills have been reduced by only 1-2%. Even in cases where consumers have switched supplier, the fall in prices is still less than half the amount that could have been enjoyed if the reduction in wholesale prices had been passed on in full.