So, my handing to BG is now complete and being put on a standard variable tariff I took a look at the fixed tariffs they are offering me - 33.158p/kWh and a whopping 39p daily standing charge to fix until December 23. This is for electricity only, so obviously wind and atoms have got a lot more expensive on their “green” tariffs. So that’s an increase of 2.4 times my original rate with Neon Reef.
Yep, I think a lot of people are in for a very rude shock when it comes to renewing their contracts. The wholesale price of electricity is primarily driven by the wholesale price of gas - which, thanks in part to Mr Putin, has gone up massively.
But for me the interesting thing is that we get 50% of our gas from the North Sea. The extraction costs for this haven't really changed much, and yet the price has escalated similarly. The free market at work.
Most sensible energy companies have of course hedged their energy needs from a year or so back, but when they are forced to take on unplanned additional customers they need to source energy on the shorter timeframe markets, and worst-case on the day-ahead market.
A quick scroll through the Ofgem graphs will show you how the prices are escalating, and with no real prospect of Russia relenting and increasing supply (actually much more likely they'll further restrict it) this is going to be a long-term thing.
https://www.ofgem.gov.uk/energy-data-and-research/data-portal/wholesale-market-indicatorsBottom line - if you've been chasing lowest-possible quotes for your fixes, brace yourself. Prices of c. £0.35/unit and £0.30/day standing charge are going to be the norm rather than the exception, and probably increasing faster than baseline inflation rate for a good few years.
