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    • Follow up on British Gas Price Increase
    • 10 August 2017
    • So in response to the recent British Gas price rises, the Government has engaged Dr Dieter Helm, a prominent energy specialist, to carry out a review of the reasons behind the domestic price increases. Expect a report which simply “kicks the can down the road” for domestic consumers looking for answers as to why their bills are rising as wholesale prices fall. The fact that the report from Dr Helm will be published in October shows that it appears to be more PR than substance.


      The answers are expected to be that it is, in fact, Government policy to support the de-carbonisation of the UK’s electricity generation which is pushing up bills for all consumers. It is just that the policy-makers expected wholesale prices to rise to support investment decisions by new renewable generators. Against a background of global supply glut and poor economic performance, these wholesale price rises have not materialised, leaving the consumer to meet the cost through subsidies.