Electricity Prices

Backbenches have said a topic for Wednesday is electricity prices:

POWER PRICES-A SHOCKER?:  Nearly 80% of our electricity comes from renewable energy sources, primarily hydropower. Power prices have more than doubled since 2002. So, why are our monthly power bills so dear? And why can your power costs vary so greatly from power company to power company. Labour says we are paying far too much. But what is the solution to lower prices? Do we need to nationalise the power companies? Do we need to change how much lines companies charge? Their tarrifs can make up to 40% of a monthly powerbill? Or is this just the price of doing business?

Yes they have doubled since 2002, but the increase has not been consistent. To help, here is a graph of annual electricity inflation.

Quite a difference, although price increase of over 3% are still too high.

In the seven years from 2001 to 2008 inclusive electricity prices increased 63.5%. Since 2008 they have increased 24%.