SPICe ENERGY PRICES briefing SCHERIE NICOL AND GRAEME COOK 5 December 2008 Energy prices have risen between 10% and 50% over the last year with 08/70 Consumer Focus estimating the current average annual domestic energy bill to be over £1,300. With the percentage of households in fuel poverty having increased from 13% to 25% over the last 5 years and fuel prices predicted to continue to rise, energy prices have been a subject of recent interest. This briefing provides an overview of recent trends in energy prices and highlights the key factors influencing the general price of energy and the price of oil, domestic gas and electricity. It then considers the key impacts that changing energy prices have on consumers, producers and the environment before summarising the key policy levers available to the EU, the UK and Scottish Governments. Scottish Parliament Information Centre (SPICe) Briefings are compiled for the benefit of the Members of the Parliament and their personal staff. Authors are available to discuss the contents of these papers with MSPs and their staff who should contact Scherie Nicol on extension 85380 or email
[email protected]. Members of the public or external organisations may comment on this briefing by emailing us at
[email protected]. However, researchers are unable to enter into personal discussion in relation to SPICe Briefing Papers. If you have any general questions about the work of the Parliament you can email the Parliament’s Public Information Service at
[email protected]. Every effort is made to ensure that the information contained in SPICe briefings is correct at the time of publication.