There are some questions to be answered about Chris Huhne’s explanation that ever rising prices for gas and electricity are mainly caused by fossil fuel costs, with only a tiny fraction of the increases supporting the massive
susbidies taxes on everyone’s energy bills.
Wholesale energy prices peaked in 2008, and then fell back at the end of 2009, retail energy prices however after a slight fall stayed well above the 2008 peak, there were modest increases in wholesale price, last year and this year, but wholesale prices today, are well below the 2008 peak.
Fossil fuel prices have fallen, yet Huhne maintains that ever rising fossil fuel prices are the cause of all time high energy bills:
Huhne is also wrong to assume that fossil fuel prices will always continue to rise, the shale gas revolution in the US is proof of that, where gas prices have fallen on average 15%.