The recent fall in energy prices could last longer than predicted.

Energy bill payers are being advised to consider searching for a new energy supplier after it was revealed that the cost of energy is getting cheaper.
According to a recent article in the Daily Telegraph, this may be a new age for cheap prices of gas and electricity.

George Trefgarne, writing for the newspaper stated that “the main international gas price has […] fallen to a record low,” - plummeting by 50 per cent since their peak last summer.

Yet although we have seen the price we pay for our energy fall by up to 10 per cent, the main energy suppliers have failed to pass on the 50 per cent reductions to consumers.

For months, campaigners have been calling for price cuts after the wholesale prices of gas and electricity fell.
Suppliers are now being hit by the energy regulator, Ofgem as to why they are still charging consumers with the same prices.
Ogem contacted six of the major power firms writing a letter demanding them to reduce bills and explain to their customers why the reductions were not passed on.

In the letter, Ofgem chief executive Alistair Buchanan wrote: "Wholesale costs have fallen from last year's peak and look set to fall further as we head into the winter. In a strong competitive market, we would expect prices to respond to such falls.

"You will be familiar with these trends and also aware of some public dissatisfaction with suppliers' response so far to wholesale price reductions.

"I have been, and remain, concerned about how effectively the sector communicates with consumers. I believe you owe it to consumers, ahead of the winter, to explain how cost changes, including falling wholesale costs, are likely to bear on future energy bills and I urge you to do this."

According to Trefgarne, some suppliers have stated that they will do so as soon as they “have worked through old gas bought at last year’s higher wholesale prices.”

EDF, Eon and Npower are just some of the firms that have recently launched new, and cheap online tariffs.

Trefgarne said: “We should soon begin to see those pesky direct debits fall, by several hundred pounds a year.”

The paper stated that even if the prices to begin to increase again, it is unlikely to reach the high levels that we faced in 2008.

Furthermore, energy expert for Consumer Focus, Robert Hammond, stated that energy prices could fall by a further 10 per cent.

However, Trefgarne added that British households may not benefit as much as they should from the reduced energy prices due to the lack of preparation together with the panic about climate change.
Ofgem revealed that approximately £80, or 10 per cent, will be added to a typical energy bill as a bid to pay for green projects, while “politicians of all parties are determined to push up energy bills.”

Furthermore, despite the letter sent to energy suppliers, the Energy Retail Association, who represents the major power firms, did very little to ensure homeowners would see their gas and electricity bills drop.

Chief executive, Gary Felgate of the Association said: “We have seen energy process falling for the vast majority of customers this year. Despite these falls, the wholesale market remains volatile and a challenge for energy suppliers coming up to the winter.

“Customers were protected from the massive rises in wholesale prices last year, price rises that were not fully passed on at the time.”

He added that “Companies are investing billions of pounds in new generation capacity to ensure an essential, reliable and safe energy supply to their customers."