Average energy bill cost “largely” steady at £1,328
The average energy bill for the next 12 months should be £1,328, according to Ofgem estimates, which is “largely the same” as it was when totted up last month.
Today the regulator published its Supply Market Indicator (SMI) report on duel fuel bills (i.e. for both gas and electricity) for households.
Each month it calculates how much it costs a typical large supplier to deliver gas and electricity per customer.
Wholesale costs slipped by an average £3 per customer, according to the report, to around £591 or 45% of an average dual fuel bill.
It appears this drop will be countered by a rise in network, environmental and social costs of roughly £4, up to £392.
Ofgem said this is due to inflation and an increase in subsidy for green energy via the Renewable Obligation costs for 2015/16.
What is the Supply Market Indicator?
Ofgem was scolded by boss of trade body Energy UK Angela Knight for “misleading” the public the last time it released these figures.
Today it was at pains to explain they are “not a forecast, or a statement of how much profit an individual supplier has made, or is making”.
The regulator called them a “forward looking view of cost trends for a typical large energy supplier – not one particular supplier”.