With widely-reported rising gas and electricity prices for consumers, kicking the “Big Six” energy providers has become something of a national sport.
Before we get carried away, it’s worth bearing in mind that the UK is among the cheapest in the EU for retail gas and electricity prices.
Nevertheless, as a consequence of relative household inefficiency, British consumers do spend relatively more on their bills than the EU average. Yet, can we blame energy companies for this?
It’s also important to note the impact of climate change.
Inevitably, rising energy prices are part and parcel of international strategies to reduce greenhouse gas emissions.
Steep prices in Germany and Denmark are a direct result of green policies to reduce consumption and invest in renewables technologies.
At the moment, renewables are a very expensive way to produce energy – much more so than gas, coal and even nuclear.
Perhaps it’s also worth putting things in historical perspective.
At least before the current price rises, British consumers devoted a significantly lower proportion of their income to energy than they did a generation ago.
In 1970, average household energy consumption bills took up 6% of that household’s income – in 2011, the figure was 4%. So, in proportional terms, we’re spending far less than we did in the past.
There is no doubt, reflecting economic laws of supply and demand, that rising prices cause consumers to be more sparing with their energy consumption.
Some of that decline comes from frugal practices such as turning down the thermostat, wearing an extra jumper or cutting back on the length of time in the shower. Clearly, there are limits to this.
Nonetheless, rising prices often mean that consumers simply have to pay more and look to cut back on other household expenses.
Without question rising energy prices impact most upon those living on the margins.
On the one hand, the wealthy and affluent middle class households might barely notice the extra cash being direct debited by their energy provider.
On the other, a sometimes punishing British winter perhaps provides one of the starkest manifestations of how miserable poverty can be for our most vulnerable citizens.
Donncha Marron is a lecturer in sociology and MSc Corporate Social Responsibility and Energy course leader at Robert Gordon’s University in Aberdeen
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