An explanation as to why your bills aren't dropping.

Andy_WSM

Blame Millipede...

http://www.bbc.co.uk/news/uk-politics-30766452

When energy prices were soaring in September 2013, Ed Miliband said the next Labour government would introduce a price freeze until 2017 on energy companies.
Yet since June last year, oil prices have gone down by 50% and wholesale energy prices have dipped by 30%. But the prices being paid by households to heat their homes have not fallen at anything like that speed.
That's partly because big energy companies bought up large quantities of oil and gas in advance - called "hedging" - at the higher prices to avoid being hit by a potential price freeze from May this year. So a political pledge - as opposed to actual legislation - has had the effect of sustaining prices at an artificially higher level than would otherwise be the case.

Swipe

Loose lips sink ships

samizdat

I do think suppliers would be crazy to drop prices when they run the risk of having to freeze them under a potential Labour administration.

This was always a stupid policy, and the dramatic fall in gas prices has now revealed it as having a negative impact on consumers before the election has even been held.

I am looking to switch at the moment, so will be favouring suppliers with a zero or low exit fee and variable rate tariffs.

wymondham

So politicians keep up fuel prices as well as house prices!

Bark01

Its only the standard prices that are not dropping.

Fixed products are dropping week by week and are now as cheap as they were 3/4 years ago.

trailingspouse

I've just been using a price comparison site for my gas and electric, and could get it cheaper by moving from my current supplier. So - I came on here for some advice, and this thread seems perfect!!

To get the cheaper price (a saving of £457 pa) I would need to be locked in to it for a year. Should I just go for it, or should I hang on to see if prices come down?

Bluebirdman_of_Alcathays

Bark01 wrote: »

Its only the standard prices that are not dropping.

The ones that the majority of the country are on, then.

Allied to that, my shareholding value (along with all those pension funds), have been continually hammered since EMs announcement. A real man of the people :rotfl:

Andy_WSM

Bark01 wrote: »

Its only the standard prices that are not dropping.

Fixed products are dropping week by week and are now as cheap as they were 3/4 years ago.

That's just not true!

I can't find any deals even close to the (1 yr) fixes I'm on that expire this year.

Gas 3.1p/kWh inc vat with Daligas (Expires next month)
Electricity 12.3p/kWh with iSupply (Expires Sept)

SW UK. There is nothing showing on any site that beats these prices, so if they were really dropping, how is that possible?

JJ_Egan

Certainly not dropping as claimed .
The tie in gas to oil prices is no longer as relevant as it once was .

lstar337

What about the small suppliers who claimed they don't 'hedge', but instead pay the current going rate for their energy?

Are they now making money hand over fist while maintain prices in line with the big 6?

Bark01

The smaller suppliers are the ones driving the fixed market down and have been doing so for the last year.

The large suppliers have a choice, keep standard prices at the same level and use the money to fund cheap products to mitigate loses to the smaller suppliers, or reduce their standard tariff to appease the press and be more cost reflective whilst continue to lose customers to smaller suppliers fixed products.

Bluebirdman_of_Alcathays wrote: »

The ones that the majority of the country are on

Yes, and addressing this should be the focus of the government/press

A small majority of customers are effectively stuck on standard (PPM, or legacy meter type and perhaps lack of access to switching sites) but the vast majority could actually switch if they engaged in the market. The lack of engagement can't be addressed by the suppliers.

Following the RMR changes all the information a customer needs to enter into a switching site is contained on the right hand side of the second page of a bill. It should be easy.