Wholesale Prices Plumb Ten Year Low - Loyal Customers Deserve 13% More Off Bills
ICIS HEREN reveal wholesale prices are now at a ten year low.
Winter energy bills are landing on Britain’s doorsteps and today ICIS HEREN has revealed wholesale gas prices are now at a ten year low and electricity prices are at a nine year low.
Since the last price rises in Autumn 2013, wholesale gas prices are down by 50% and wholesale electricity prices are down 35%. Yet despite these huge drops in what suppliers are paying for their energy, the big UK energy suppliers have only passed on a small fraction in price cuts to their loyal standard tariff customers. Mark Todd co-founder of one of the UK's largest price comparison service energyhelpline has commented:
“By our calculations, standard tariff customers are due another 13% off bills that’s another £141 off a typical gas and electricity bill.
Gas price cuts have averaged 11.1% on the most popular standard tariffs when they could have come down by 25%. Standard electricity prices have not moved at all except for the passing on of some Government tax cuts by suppliers.
In the switching market, prices have been coming down much faster and now the gap between a standard tariff and the cheapest deal on the market is £321” (The cheapest deal on the market currently costs £745 a year while a typical monthly direct debit standard tariff costs £1,066 a year).
“The UK energy market is a ruthless place. The cheapest deals tend to be very cheap but the default standard tariffs are almost always very expensive. This means if you switch you can get a great deal; but if you don’t, expect to be ripped off.
For the 25% of the population* who pay their energy bills quarterly, rather than via monthly direct debit, a hefty quarterly bill of £402 will be arriving in April [for the January-March winter quarter]. A decade ago the same bill would have cost £234. That’s a rise of 72% over the last decade. DECC has calculated that by switching payment methods these customers could save £118 a year.”
“If you want a good energy deal in the UK you really have to switch. Energy suppliers are profit making companies so if you are willing to pay a high price, they are not going to turn you away.”