Are electricity rates likely to go down at all?

googlefast

Just wondering what people here think about the future of leccy prices, my contract is up for renewal and I can sign 1/2/3 year contracts that offer roughly the same rates, however, the rates that are currently on offer are really high, most suppliers are quoting around 16p per kw, so I'm just thinking if there's a chance that the leccy rates are likely to fall considering that they're so unnaturally high at the moment?

JJ_Egan

What is this natural Electric price ??

googlefast

JJ_Egan said:

What is this natural Electric price ??

12p? I don't know, 15p just seems weirdly high, considering that they were between 12p and 13p just last year.

JJ_Egan

Ok so no natural price, prices are up 2021 .

Will they come down don't know but i have bet that gas prices will go up and signed a two year contract .

googlefast

JJ_Egan said:

Ok so no natural price, prices are up 2021 .

Will they come down don't know but i have bet that gas prices will go up and signed a two year contract .

That's probably a good idea, which company is offering good gas rates?

UnclaimedEnergy

If anyone knew exactly when wholesale prices would come back down then they'll probably be a millionaire right now.

Best bet is to just get a fixed tariff with no exit fee, or a low variable tariff. However if you do go for a variable tariff just be prepared for the prices to be increased if wholesale prices continue to rise.

phillw

When in the future? I expect it will certainly be more es pensive in ten years time.
However within that time it might become cheaper than it is now.

MalMonroe

Not according to Martin Lewis. Have a look at this - https://www.moneysavingexpert.com/news/2021/02/energy-bills-to-rise-for-11-million---act-now-to-beat-the-hikes/

The cost of energy doesn't look very pretty for us in the UK right now. . . 

btr30

I think energy prices are on an upward trajectory to encourage less use to reduce carbon emissions. Many fixed costs now factor into unit price such as smart meter rollout, renewable subsidies, grid upgrades etc meaning the wholesale energy price is less of a component in the overall cost. Reductions may come sooner in off peak periods for smart meter users through time of day pricing incentives.

googlefast

MalMonroe said:

Not according to Martin Lewis. Have a look at this - https://www.moneysavingexpert.com/news/2021/02/energy-bills-to-rise-for-11-million---act-now-to-beat-the-hikes/

The cost of energy doesn't look very pretty for us in the UK right now. . . 

I don't understand, how can prices go from roughly 13p in 2020, to 16p in 2021, I feel bad for people who have to heat their home using electricity.

[Deleted User]

googlefast said:

MalMonroe said:

Not according to Martin Lewis. Have a look at this - https://www.moneysavingexpert.com/news/2021/02/energy-bills-to-rise-for-11-million---act-now-to-beat-the-hikes/

The cost of energy doesn't look very pretty for us in the UK right now. . . 

I don't understand, how can prices go from roughly 13p in 2020, to 16p in 2021, I feel bad for people who have to heat their home using electricity.

Still some 12.7 - 12.9p/kwh electricity tariffs about on fixed or variable with 17-19p s/c and no exit fees just a click or two away. Also 13.6p/kwh on 12p s/c for those with lower consumption.