Department of Energy and Climate Change projection

welshmike_2

"Their (the IFS) central scenario (published in 2010) is that electricity prices will increase by around 15%, and that gas prices will increase by around 20%, in real terms between 2010 and 2015."

Well it has already started happening but read the recent IFS, Institute of Financial Studies, press release here http://www.ifs.org.uk/pr/inflation_0611.pdf

grahamc2003

welshmike wrote: »

"Their (the IFS) central scenario (published in 2010) is that electricity prices will increase by around 15%, and that gas prices will increase by around 20%, in real terms between 2010 and 2015."

Well it has already started happening but read the recent IFS, Institute of Financial Studies, press release here http://www.ifs.org.uk/pr/inflation_0611.pdf

How odd. Just my latest increase in bgas websaver 11 for seeboard's area is 33% in the price /kwh.

With inflation at around 4.5% pa, (so say 3.5% since their last increase), the real rate is more or less 30%.

What I think they are doing is factoring in a 20% or 30% drop in everyone's usage - but even with that fudge, the increases will (and already are in just the second year), be far above their almost rediculous estimate.

I think we are looking at reaL, after inflation, increases of at least 35% per annum, not 20% over five years!.