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Energy: Prices

Volume 482: debated on Wednesday 5 November 2008

To ask the Secretary of State for Energy and Climate Change what assessment he has made of the gap between (a) wholesale market prices and (b) retail prices for home energy fuels; and if he will make a statement. (228791)

According to the recent Ofgem probe, wholesale gas and electricity costs make up about 65 per cent. of the retail prices of gas and electricity. Changes in wholesale energy prices of gas and electricity tend to be passed through to retail prices with a lag. Retail pricing structures of companies are commercial decisions by the energy supply companies and the Government do not interfere in commercial pricing decisions in the energy supply markets.