Your independent energy adviser
0800 051 5770

September SMI from Ofgem

Supply Market Indicators

In our regular monthly review of Ofgem’s Supply Market Indicators we focus on September’s release from the energy regulator.

The September 2014 SMI from Ofgem reported that:

  • They estimate that the average annual dual fuel bill has fallen slightly for the next 12 months at £1,329 from last month’s £1,330 estimate
  • They estimate average annual consumption will decrease by 2% over the coming year
  • Gas bills will be £741 per annum on average whilst electricity bills will be lower at £609
  • That wholesale prices have fallen since the start of 2014 with the gas price 15% lower and the electricity price 5% lower
  • That wholesale prices will make up around 45% of the average dual fuel bill
  • That network costs will once again increase in the month to £302 of the average bill over the next 12 months from £301 in August
  • That environmental and social obligation costs will increase to £86 from £85 last month and will continue to add 6% to the average customer bill
  • That supplier operating costs will remain at a forecast level of £174 or 13% of the average dual fuel bill
  • That Supplier pre-tax margins (profit) will be remain at £102 or 8% of an annual duel fuel bill over the coming 12 months.

The headlines from the September SMI therefore are:

  • Consumption DOWN
  • Wholesale energy costs DOWN
  • Network costs UP
  • Environmental and Social costs UP
  • Supplier costs LEVEL
  • Supplier profit LEVEL




Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.