Despite the falling price of oil, cheaper gas and electricity bills still look some distance away. Since the record 100p a therm levels in the summer, wholesale gas prices have fallen around 20% as oil has slumped to less than half the highs seen in July. But gas bought by Britain’s main energy suppliers like British Gas remains well above previous year’s prices. Gas for delivery during the first quarter of next year – one of the benchmark industrial prices – was trading at 80p a therm today, up two-thirds from the 48p figure seen last year. Thanks to soaring wholesale prices, millions of UK households have been hit with two massive bill hikes this year. Dual fuel customers of British Gas, owned by Centrica, now pay an average of GBP1,317 a year – GBP404 more than at the beginning of the year. British Gas owner Centrica said there was little prospect of costs coming down while gas remained so much higher than previous levels. Oil prices were trading at 71 dollars a barrel today, more than 50% down from the 147 dollar high seen in July. Oil prices take around six months to filter through to domestic supplies, according to industry experts. Other factors which have kept wholesale prices high include the UK’s dependency on imports – currently running at 40% – increasing ageing platforms and stiff competition for supplies of Liquefied Natural Gas. Volatile movements can also be caused by general market nervousness over what is seen as a dwindling resource. In August a leak on a major North Sea pipeline discovered by Norway’s oil and gas producer Statoil Hydro saw prices jump 14% in one day.

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