Latest AWE Index: BOC price variations.

What is the Average Weekly Earnings (AWE) Index?

The Average Weekly Earnings (AWE) is the lead indicator of short-term changes in earnings, it’s a calculation ratio of estimated total pay for the whole economy, divided by the total number of employees and is published monthly two months in arrears.

The Average Weekly Earnings (AWE) measure was accredited as a National Statistic in January 2010 and, consequently, it replaced the National Average Earnings (NAE) Index as the headline measure of earnings growth in the UK.

What is the latest AWE earning rate now?

The latest published figure is for August 2024 is £693.

This is a 4.47% increase from the last price escalation index (July 2023) used by BOC for their January 2024 price escalation. This is likely to be rounded up to a 4.5% increase across BOC products and services.

How will an AWE change affect my company?

Almost all customer who use BOC will be affected by a change in the AWE index in some way. What impact it has will depend on the type of supply modes you have, contract type and a range of other factors.

If the AWE index goes up or down, the prices that you pay will change, based on the % increase/decrease between the published indices in your contract and the latest published AWE index. This % change will be applied from the 1^st of January every year or from time to time depending BOC and on the size of the increase.

If you have just entered a new contract less than 3 months old (mid-October onwards) your prices are unlikely to change in the January price review, until the following year.

Compressed and mini bulk products

All compressed gas prices are 100% dictated by the AWE index. The 4.47% increase in the AWE will be fully passed on into the prices you pay.

Any company on SPNC rates are not protected by the index. As such the prices changes will be at BOC’s discretion. This is typically a 1%-2% increase plus the AWE % change.

Bulk gas products

All bulk gas prices are dictated by a tri-index made up of AWE, the Retail Price Index excluding mortgages(RPIX) and BOC’s energy costs. The 4.47 % increase in the AWE will only impact 45% of the total gas price. The remaining 55% of the gas price is broken down by BOC’s energy costs 40% and the RPIX at 10%. The remaining 5% doesn’t change.

Your facility charges will be impacted as the AWE impacts 30% of the facility charge. The remaining 70% is dictated by the increase in the RPIX.

What can you do about it?

If the price changes are impacting your company, it’s important to seek advice to mitigate the price increases and reduce the cost burden on your organisation.

Find out what we can do, to support your company with a range of service packages to suit your supply modes Contact us today.