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BRIEFING REPORT TO THE SECRETARY OF STATE FOR ENERGY AND CLIMATE CHANGE ON FACTORS TO CONSIDER IN THE PREPARATION OF A NEW ENERGY BILL FOR THE UK - Coursework Example

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It touches on the factors that should be put into consideration during the preparation of the United Kingdom’s energy bill. It cuts across the modifications that should be…
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BRIEFING REPORT TO THE SECRETARY OF STATE FOR ENERGY AND CLIMATE CHANGE ON FACTORS TO CONSIDER IN THE PREPARATION OF A NEW ENERGY BILL FOR THE UK
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Download file to see previous pages The only problem is that, this perspective of price reduction fails to reach the extreme end that is expected by most people [1]. After the substantial falling of the wholesale gas prices in the course of the year 2014 as well as the oil prices in the time frame of just 6 months, they logically desired for a bigger drop with regards to their energy prices. When various suppliers however announced of the subsequent price cuts, all of them were almost at the single digit reductions.
The bill prices often take time to fall to more appropriate prices due to various outstanding reasons. First and for most, the natural gas’s cost does not essentially have any link to the oil prices. The other factor is that, the gas’s wholesale price is part and parcel of the bill’s segment. For instance, the gas that most individuals are using up-to-date was probably not bought at the current wholesale prices. This is to mean that constant variations tend to occur when it comes to this matter of energy bills. 
The secretary of state should also bear in mind that there are various undertakings or make ups when it comes to the aspect of energy bills (either electricity or gas bills). According to the British Gas, Around 42% of an individual’s bill is determined by the energy’s wholesale prices [3]. This is the entire gas and electricity cost that is mutually bought by the British Gas on wholesale unit.  It is also worth to bear that while gas prices falls by almost a third of the total value, electricity has rarely fallen.
The next chunk of the gas bill that is approximated to be at around 27% encompasses the total network costs. They are the wires and pipes that bring the electricity and gas home. They are usually owned by a number of distribution companies including the National Grid, which often charge people a substantial amount for their usage. The charged fee is usually overseen by a body known as Ofgem, which is taken as the ultimate regulatory unit, and has ...Download file to see next pagesRead More
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