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Inexorable rise of UK energy prices

eonEnergy bills in the UK have rocketed by 55% in the last decade.

Despite the use of energy dropping by 17%, prices have gone from an average of £69 per month in 2002 to £106 a month by 2012.

The 55% increase, which excludes the impact of inflation, covers electricity, gas and other household fuels such as heating oil.

The figures from the Office for National Statistics also show that energy costs rose from 3.3% of household annual income to 5.1% as a result.

The greatest surge in prices took place from 2004 to 2009. They have been relatively stable since then.

Faced with rocketing energy bills, consumers cut down on energy. Many also got energy-efficient boilers and had their homes insulated.

The ONS also pointed out that pensioners feel the pinch more, even if receiving winter fuel and cold weather payments.

A retired household - averaging 1.5 people - spends £97 a month on energy, comprising 7% of their disposable income.

A working-age household, by contrast, with an average 2.6 people, spends £110 a month but this comprises only 4% of their disposable income.

Tom Lyon of price comparison website uSwitch.com said the figures showed that energy is becoming increasingly unaffordable for many consumers. He noted that more than “seven in ten households (73%) have gone without heating at some point this winter because of the cost and over a third (36%) say these cutbacks are affecting their quality of life or health."

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