Wholesale gas prices are a fifth of what they were 2 years ago

Salading

Sept 18, 73p, today 13p. 

I have noticed that my variable rate with Ovo has fallen at all. Have others?

I tried posting a link but this won’t let me. Try Googling for ofgem wholesale gas prices. Look at the day ahead monthly average. 

UnclaimedEnergy

Ok... some things that need to be pointed out here:

1. These prices are p/Therm which an average household uses about 40 of a year.
2. You're therefore looking at a yearly price of £30 dropping to £5
3. Wholesale prices make up only a % of your total bill. In those two years you've also seen non-wholesale costs change
4. No supplier buys the bulk of their gas prices on the day ahead... Most suppliers would hedge their power over 6 month - 2 years in advance to reduce the risk in day ahead.

Finally... You shouldn't leave yourself on a variable rate unless it's a specific cheap one as most just follow the price cap.

Instead of spending time online looking at wholesale prices, compare other suppliers and switch to a cheaper tariff.

[Deleted User]

Breakdown of a UK gas bill as at Aug 20.

https://www.ofgem.gov.uk/data-portal/breakdown-gas-bill

Gerry1

Dolor said:

Breakdown of a UK gas bill as at Aug 20.
https://www.ofgem.gov.uk/data-portal/breakdown-gas-bill

It seems that the 'Supplier pre-tax margin' is -0.49%, i.e. they're all making a loss.

Perhaps Ofgem used Robin Hood Energy's figures by mistake? 

UnclaimedEnergy

More likely just used the average for all suppliers on the market.
Average price on the market is likely £0 margin

macman

Th price of the raw material is just one factor in the equation making up the retail price of mains gas. That is the price at the point of extraction. The cost of transporting it around the network, of maintaining that network, reading the meter, billing the service, overall staffing etc make up the greater part, and they do not alter with the raw material cost.