Energy prices, free markets and Russian Gas

The last of the big six energy suppliers, Scottish & Southern Energy, announced a price rise a couple of days ago which will take effect from 1^st April 2008. They blame wholesale price increases and they are right to do this. They also point out that transmission costs are also going up as are “environmental costs”.  

Like all energy suppliers Scottish and Southern have a number of different tariffs. On average electricity is rising by 14.2% and gas by 15.8%. Oil is today standing at around $110 a barrel.  Trying to see where prices will end up is difficult. There is the possibility of price falls due to the present economic turmoil.