The price of Wholesale Gas has just crashed to a new low. Just 150p per therm compared to 702p in August.
This being the case, why are our Gas Bills STILL so high??
Solved
Wholesale of prices have gone down, will unit rates follow this pattern?
Best answer by Jeffus
Updated on 24/04/24 by Emmanuelle_OVO:
Want to find out the latest on the price cap? This topic may help answer your questions:
Currently Ofgem are due to announce the next Ofgem price cap on 27th February and this comes into force on the 1st April.
Separately the Government Energy Price Guarantee is due to rise from an average £2500 to an average £3000 on 1st April. So a 20% increase. This is for an average user which is defined as 12000kWh gas and 2900kWh electricity. This is the maximum an average user will pay if on a standard variable rate contract. Basically the Government are cutting back on the amount they are willing to subsidise bills.
So watch out for the Ofgem announcement on 27th Feb to see if it is above or below the Government Energy Price Guarantee. One of the regulars on the forum will post an update i am sure.
For now I would assume costs go up by 20% from 1st April before falling from 1st July at the next quarterly Ofgem Price cap adjustment. Simply due to the way the majority of energy is bought in advance, and hence this would have been at higher prices.
It will be interesting to see when suppliers like OVO are confident enough to be able to start offering fixed price contracts again.
Suppliers like OVO aren't making much if any money, it is the gas producers and for older contracts some of the non fossil fuel electricity generators.
+5- Plan Zero Hero
- 2731 replies
I think we’ll all breathe a little easier when this settles down. Things are still rather volatile and as you may know, these commodities are traded in advance to ensure continuity of supply.
Things are still higher than what might be seen as a norm but hopefully we can look forward to some reductions soon
Let’s hope so.
I saw the owners of one Energy Company (not sure which) decided to pocket a £20Million bonus profit, instead of passing the savings down to their customers!
That’s just plain greed!!
+2- Plan Zero Hero
- 2553 replies
- Answer
Updated on 24/04/24 by Emmanuelle_OVO:
Want to find out the latest on the price cap? This topic may help answer your questions:
Currently Ofgem are due to announce the next Ofgem price cap on 27th February and this comes into force on the 1st April.
Separately the Government Energy Price Guarantee is due to rise from an average £2500 to an average £3000 on 1st April. So a 20% increase. This is for an average user which is defined as 12000kWh gas and 2900kWh electricity. This is the maximum an average user will pay if on a standard variable rate contract. Basically the Government are cutting back on the amount they are willing to subsidise bills.
So watch out for the Ofgem announcement on 27th Feb to see if it is above or below the Government Energy Price Guarantee. One of the regulars on the forum will post an update i am sure.
For now I would assume costs go up by 20% from 1st April before falling from 1st July at the next quarterly Ofgem Price cap adjustment. Simply due to the way the majority of energy is bought in advance, and hence this would have been at higher prices.
It will be interesting to see when suppliers like OVO are confident enough to be able to start offering fixed price contracts again.
Suppliers like OVO aren't making much if any money, it is the gas producers and for older contracts some of the non fossil fuel electricity generators.
Reply
Log in to the OVO Forum
No account yet? Create an account
Enter your E-mail address. We'll send you an e-mail with instructions to reset your password.