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Energy: Prices

Volume 700: debated on Thursday 24 April 2008

asked Her Majesty's Government:

What plans they have to adjust their estimates of future energy prices. [HL2997]

The Government do not predict energy prices, and it is for the market to decide how to respond to external pressures such as the recent rise in wholesale costs. However, BERR does regularly publish assumptions about the future trends of oil, gas, and coal prices. The most recent set can be found at www.berr.gov.uk/energy/environment/projections/index.html. Work on updating the fossil fuel assumptions is currently under way to help inform the decisions relating to the carbon budgets, as set out in the recent Climate Change Bill. In addition BERR, for its internal modelling, regularly explores possible future retail prices. The next update is expected in summer 2008.