Full impact of price rises not being felt. Yet!

savers_united

As we have seen wholesale prices especially of NG increase the past 6 months, most notably the biggest increases have been witnessed in the past 4-6 weeks, hence the weekly change in fixed deal rates.

Those on variable tariffs protected by the cap are still heavily protected against the current wholesale market price, those who fixed a few months ago or more are still enjoying a fairly good rate if with one of the remaining suppliers.

However come April the cap is going up big time as it will be based on current wholesale prices we are seeing now, those on the most popular fixed deals tend to fix for 12mths as many have exit fees, so many millions come April / May /June / July next year will see the true extent of the price increases when their fix deals end.

So if wholesale prices still remain fairly high, next year will be far worse as there will be no escape for anyone, a higher cap and many who fixed now coming to an end. 
This winter is for the majority protected, only those on fixes beyond 12 mths who I guess are already paying a slight premium will face no big shocks next year. 

tux900

I was wondering to myself how high energy prices could go - or be allowed to go - and happened to stumble across the fact that Germany (I think?) pay something like 30p/KWh for electricity and so it's surely not impossible to imagine that being the case here. I feel very fortunate indeed that whilst I wouldn't want to pay that much I still could, but I do fear for those people that couldn't.

Ultrasonic

Correct, plus price rises will also need to cover the costs associated with suppliers going bust.

There is at least some hope/expectation that the current gas prices with fall at least somewhat though, rather than their current level becoming a 'new normal'.

pallyman

There is hope on the electric front as there will be no shortage of wind in the coming months and the cable from Norway is now up and running but not yet at full power.

Streaky_Bacon

I think it is far too early for anybody to be able to say where prices will be in 6 months.

The press are able to find industry experts who claim that prices will be higher, but I think that is just speculation. I see no evidence that anybody foresaw the current extent of the price spikes, and so no reason to believe that they have a crystal ball for 6 months out, and certainly not further.

There are so many factors which feed into a price, not least of all the weather, that to even predicting the direction of prices is not really feasible.

The situation could be the same, or worse, in 6 months, and may never return to the level of the last few years, but it could also well be that the pressures on the market have significantly reduced, along with prices.

If prices fall, the remaining suppliers will be looking to compete for customers on the basis of how much they can buy energy for then, not trying to recoup how much they are paying  for it now. The cap should also really reflect how much suppliers have to pay for energy, rather than how much they previously had to pay for it under forward contracts. If that isn't the case, and energy prices fall, while the cap rises, then there should again be deals available which beat the cap.