Energy Economics in Britain

The Office of Gas and Electricity Markets regulate energy markets in the UK

This is a prelude to a longer feature about the energy markets and the energy companies’ reactions to them, but we are here to engage with you, our collaborators of everything science, environment, technology and health, and we would like to know what you have to say.

Both British Gas and Scottish and Southern Energy announced large price rises in November, with npower , E.ON and Scottish Power, three of the other four major energy suppliers in the UK, likely to increase their costs in the coming weeks as well.

EDF are the only ‘big six’ company that has declared price freezes in Britain for the winter of 2011, although rises are likely in the Spring, when there is a chance that the other companies may choose to reduce their prices. It is market-related to some extent, as demand for energy skyrockets during the winter, reflecting the desire to stay warm, or in some cases, simply alive.

Security concerns over resources in the EU is questionable; Russia and the Ukraine’s annual spat over pipelines and access is brewing, production from North Sea oil and gas fields is falling, and there is always a background debate over Middle Eastern oil. All this adds to the cost, which is passed on to the customer.

So where do your loyalties lie? Who supplies your energy, and why are you with them? Do you change your energy consumption habits to offset costs? Your answers could determine our take on the feature.