Still waiting for tariffs to reflect lower wholesale fuel costs

thor

I have had to turn on the boiler for the first time in a long while during this little cold snap so am expecting bills to be big again. I can't wait for effects of lower wholesale fuel prices to feed itself through to the utility companies. After all, for years they have been telling us that they find it difficult to reduces prices because they buy fuel many months in advance.
Funny how when fuel drops, the utilities drag their heels or in the rare instances tariffs do get reduced, it is for some inconsequential amount( i.e 5% and only for electricity or gas but not both). Maybe that is all we are going to get?

Bluebirdman_of_Alcathays

OVO have reduced theirs 7 times in a year. I suspect the big 6 are hedged pretty badly, and the smaller suppliers can move quicker. It's also a lot, lot cheaper than our continental neighbours.

I do agree that it does feel like increases seem more punitive than the falls. But it's the same for petrol at the pump, so it's not even confined to energy.

[Deleted User]

We are getting lower prices but only if the best one year fixes are grabbed, especially the collectives.I ve just got a deal with the MSE collective at only 2.65p/kwhr for gas, 8.25 p kwh electric.thats lower than last year for me

Pincher

Just filled up petrol for 1.03p, less 3% Santander cashback.


The thermostat is on 20 degrees C, because I am burning gas at 2.674p per kWh. I think I was on 3.35p last year.


Very happy bunny here.

audigex

Crude went over $100/barrel so petrol 'had' to go over £1/litre, since when duty has mostly been frozen

Crude hit $146, petrol hit £1.45

Crude is now $45.... Strangely enough, we're still paying £1.07 a litre

The power companies are the same - they don't get any profit for reducing prices

Bark01

Bluebirdman_of_Alcathays wrote: »

OVO have reduced theirs 7 times in a year. I suspect the big 6 are hedged pretty badly, and the smaller suppliers can move quicker. It's also a lot, lot cheaper than our continental neighbours.

I do agree that it does feel like increases seem more punitive than the falls. But it's the same for petrol at the pump, so it's not even confined to energy.

OVO have not reduced their prices 7 times in a year - this is just marketing spin.

They have released 7 new products each cheaper than the one before. Customers on older products or their standard tariff have not seen reductions.

Name me a major supplier who hasn't released a handful of cheaper new products in the last year.

The moves in costs are reflected in the fixed price market. Whole sales prices are falling but non energy costs are rising. Overall gas prices are falling and electricity prices are rising. I’m with EDF and a serial switcher as they don’t have cancellation fees. Swapping from their last but one product to their new product saved me £50 on the gas but would have cost me an extra £20 on the electricity side.

NittyGritty

one thing I have noticed of late that on price comparison sites, nearly all of the BIG 6 bar maybe 1 are all out of the top 5 as the cheapest?


seems all the small companys are taking advantage nowadays which is nice to see

notbritishgas

Bark01 wrote: »

OVO have not reduced their prices 7 times in a year - this is just marketing spin.

They have released 7 new products each cheaper than the one before. Customers on older products or their standard tariff have not seen reductions.

Name me a major supplier who hasn't released a handful of cheaper new products in the last year.

The moves in costs are reflected in the fixed price market. Whole sales prices are falling but non energy costs are rising. Overall gas prices are falling and electricity prices are rising. I’m with EDF and a serial switcher as they don’t have cancellation fees. Swapping from their last but one product to their new product saved me £50 on the gas but would have cost me an extra £20 on the electricity side.

Yes I have just changed from EDF July 2016 to Jan 2017. Gas was much cheaper at 2.74p per kWh about £45 saving but electric was more expensive. So as I am not on single billing I just changed gas.

Bark01

NittyGritty wrote: »

one thing I have noticed of late that on price comparison sites, nearly all of the BIG 6 bar maybe 1 are all out of the top 5 as the cheapest?


seems all the small companys are taking advantage nowadays which is nice to see

The smaller companies have shorter hedging windows so their prices are more reflective of the spot (current) prices; this means they benefit when the price falls. The large suppliers have a longer hedging window which attempts to average out the price; this means when prices rise the smaller suppliers will be hit harder and the large suppliers will return to be competitive.

notbritishgas wrote: »

Yes I have just changed from EDF July 2016 to Jan 2017. Gas was much cheaper at 2.74p per kWh about £45 saving but electric was more expensive. So as I am not on single billing I just changed gas.

EDF allow customers to split products and still single bill. I’m on an older product for electricity and a the new product for gas and will still revive a single bill.

Hoopie1

Change supplier. My tariff is far lower now than it was a year or so ago. The NPower tariff I just switched to is around £80 a year cheaper than the one I switched to a month or so ago, which was again around £80 cheaper than the one before that.

molerat

In April 2008 I was paying 2.45p for gas, today I am paying 2.4p. Electricity was 10.24p, today 10.34p. With inflationary increases they should now be 3.08p and 12.86p