Big 6 wholesale prices fallen yet no cuts??

NittyGritty

as most people know wholesale prices have fallen, yet the big 6 companys STILL haven't cut their prices why is this ?


yet the first sign of wholesale prices rises, they would hike the prices like a shot?


hopefully one of the big 6 will kindly respond to this who use these boards?

Bark01

3 main points:

1) The lower prices are already being reflected in the fixed price market and most of the country can access these tariffs. Prices reflective of the changing costs are available if people engage in the market.

2) The fall in wholesale price is only one of many factors and all the other non-energy costs have been increasing.

3) The CMA investigations provisional remedies are being announced next week – as these are likely to mean changes to the way standard pricing works, suppliers would be unwise to announce anything before the full impacts of the industry changes being forced on them are known.

matelodave

Look here https://www.gov.uk/government/news/cma-extends-energy-investigation-timetable.

The longer they spin it out the longer it will take for the energy companies to sort themselves out. Procrastination is just costing us all lots of money

Bark01

Its not procrastination its just incredibly complex and the decisions they make may have long lasting impact on the industry.

The provisional results are being announced next week. there will then be a 6 week consultation period. The final remedies are being announced in April, but i doubt there will be much change between the provisional and final reports.

I think at this stage its pretty much a given that a regulated tariff will be introduced for vulnerable customers and the 4 tariff cap will be removed.

AnotherJoe

Ok so my question which was going to be, fix now (til Feb 17) or wait a couple weeks, looks like i should fix now?

macman

The defence of the Big Six will always be that they have bought forward up to 2 years ahead at a very much higher wholesale price than that currently applying.
No one two years ago, including their highly paid analysts, had any notion that oil would now be below $30 a barrel, and probably heading near $20 now, with Iran coming on stream.

molerat

AnotherJoe wrote: »

Ok so my question which was going to be, fix now (til Feb 17) or wait a couple weeks, looks like i should fix now?

One of the cheapest fixes for gas and one of the cheaper for elec are 12 mths with no tie in with Zog and Robin Hood.