Energy bills fall for first time in years

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Energy bills fall for first time in years:
Some of the country's biggest companies have secured price reductions of 13-14% for energy to be supplied from October next year as bills start to fall after years of increases, a brokerage said on Thursday. "This comes as a respite for energy buyers who have had to bear the brunt of successive increases in recent years," John Hall, managing director of John Hall Associates Limited, said. "Last winters volatile energy prices contributed to 100,000 job losses in the UK manufacturing sector," he added. Hall declined to name the companies with reduced bills but he said they included some of the UK's largest energy consumers. The lower bills reflect a steep drop in wholesale gas and power prices in recent months. The prices have fallen as new projects to import gas have eased concerns about a supply gap caused by sliding output from the ageing North Sea fields. John Hall said end users had signed one-year supply deals, starting in October, with reductions of 14 percent for gas and 13 percent for electricity. Household energy bills in have yet to start falling, despite the drop in wholesale prices. Bills are not expected to decline until next year, when utilities will begin to feel the benefit of lower wholesale costs, industry sources say. 29.9.06

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