Households have been warned not to expect falling gas bills any time soon, despite the recent slide in oil prices. Crude oil has fallen to its lowest level since April, but wholesale gas prices for the coming winter still stand above £1 a therm - double last year. The elevated wholesale costs have already prompted two rounds of price hikes this year from the UK’s ‘big six’ energy firms, heaping further pressure on stretched family budgets. The average dual fuel bill for gas and electricity has risen to £1,283 from £912 at the beginning of the year, according to consumer watchdog Energywatch. As a net importer of gas the UK must buy part of its supply from the continent, where gas prices are linked to oil. But crude’s recent highs are still being reflected in the wholesale price due to the time-lag in forward supply contracts. James Allpress, an analyst at energy data company ICIS Heren, said: “Falls in the oil price don’t immediately translate in to falls in the wholesale gas price. “When the oil price changes, the price movements tend to affect the UK wholesale gas market with a delay of months. “This winter’s wholesale UK gas price already has the high oil price built in, though if oil prices continue to fall, we should see that reflected in falling gas prices next year.” Other factors which have kept wholesale prices high include a leak on a major North Sea pipeline discovered by Norway’s oil and gas producer Statoil Hydro two weeks ago. The firm closed the pipeline, which pumps an estimated 5% of Norway’s total gas output, and warned it could remain shut until next spring.
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