|The typical UK domestic electricity bill*,
calculated using tariffs at 1 April
1999, is ｣256, excluding VAT. This
is a reduction of ｣2 on the previous April.
*based on a customer supplied on a Domestic Standard tariff and consuming 3,300kWh per year
Comparing April prices over the last nine years, the cost of domestic electricity has fallen by ｣90, after allowing for inflation - a fall of 26 percent. The typical household now pays 74 pence per day (including VAT) for all its electricity needs in the home; about the same as two pints of milk delivered to the doorstep, or a large loaf of bread.
UK industrial electricity prices
The Electricity Association also tracks prices
to customers in the industrial sector.
In order to ensure that calculated results
are consistant in methodology, comparable
over time, and to act as a basis for comparison
with other countries, three benchmark loads
are used. Each benchmark has its own
defined levels of maximum demand and load
factor to give a standardised consumption
pattern. The benchmarks are as follows:
|Maximum consumption (MWh/year)
|Annual load factor*
* load factor is defined as the ratio of the average load, during a specified period, to the maximum load (maximum demand) during that period.
Using these models and historic tariff and contract prices, we have compiled a table of final-user industrial prices.
Annual Average Results
1 Source: Electricity Association's International
Electricity Prices Surveys (IEP).
2 Tariff prices (tariffs were generally applied until March 1994).
3 Tariff prices (tariffs were only applied to this type of load until March 1990).
4 Special-terms prices (such terms were only applied until March 1990).
5 Retail Prices Index.
International Electricity Prices
The Electricity Association also carries out an annual survey of international electricity prices, to provide an indication how UK prices compare with european and world electricity prices.
Each survey is a snapshot of prices at 1
January. The results take several months
to compile and the last results available
are for the survey dated 1 January 1998.
Following below are highlights and press
release extracts from the launch of the survey's
Low Electricity Prices Give UK Industry the Edge in Europe
With EU countries opening at least 25 per cent of their electricity markets to competition in February 1999, new figures show that the UK industry is well placed to capitalise, with some of the lowest power prices in Europe.
Despite the strength of sterling, UK domestic electricity prices are fifth cheapest of the 15 EU member countries, the Electricity Association revealed in its latest edition of the worldwide comparative prices data survey International Electricity Prices.
The most recent European figures available (for 1 January 1998) show that despite the strength of the pound, the UK remains one of the cheapest sources of EU electricity. Prices for a typical domestic customer, allowing for standing charges and VAT, fell six per cent in real terms from the previous year to 8.76 pence per kilowatt hour. That compared with a price of 12.00 pence per kilowatt hour in Denmark, the most expensive nation in the table.
In the industrial market, UK electricity prices under contract are also good value, halfway among the 15 EU member states. Prices for a typical medium-sized industrial user, with a 2.5 megawatt 40 per cent load factor supply, are 4.15 pence per kilowatt hour, compared to 6.02 pence for Germany, the most expensive.
Previous IEP comparisons have found that European electricity prices tend to be relatively high compared to prices in other continents where there may be cheap indigenous fuel sources available. Notwithstanding this, and sterling's strengthening against all but three currencies in the survey (USA, Chile and Argentina), prices remain well placed; about halfway in world terms.
Welcoming the findings, Philip Daubeney, Chief Executive of the Electricity Association said:
"Britain is leading the world with the introduction of fully liberalised energy markets, and our competitive electricity prices are increasingly becoming the envy of our European neighbours. UK customers are enjoying further substantial price reductions in the competitive market on top of the average 19% real terms price cut already delivered since privatisation to 1 January 1998.
"This is good news for European customers who will soon have the opportunity to take advantage of the UK industry's competitive prices. Equally it is good news for UK power companies whose competitive edge is set to exploit new opportunities as electricity markets across Europe are progressively opened to competition.
"We are keen to see other EU Governments doing more than just the minimum required in opening their energy markets, to create a proper level playing field which will benefit customers across Europe."
Electricity Industry Page