Average energy spend soars by 55pc in 10 years
AVERAGE household spending on energy increased by 55 per cent between 2002 and 2012, while usage dropped by 17 per cent over the period, according to data compiled by the Office for National Statistics (ONS).
The divergence between spending and use means that the increase in average spending is explained solely by rises in energy prices, the research said.
Households spent an average of £106 a month on energy in 2012, up from the equivalent of £69 a month in 2002.
Most of the increase came between 2004 and 2009, reflecting the significant increases in energy prices over this period. Households spent an average of 5.1 per cent of their income on energy in 2012, up from 3.3 in 2002.
Average spending on gas increased by 56 per cent, while spending on electricity rose by 43 per cent.
The ONS report comes at a time when the cost of living is at the centre of a fierce political debate. Consumer groups argue that energy bills are too high, but the suppliers blame wholesale costs and green levies for driving up bills.
“The UK energy market has seen radical change, moving from being a gas producer to an importer,” said industry body Energy UK. “While companies try to keep prices down wholesale energy costs, government levies and distribution costs have a large impact on the retail price of energy.”