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Wholesale Electricity Costs,

Podman88
Podman88 Posts: 1 Newbie
edited 17 November 2022 at 10:30AM in Energy
Could some please explain why electricity bills are going through the roof when the wholesale price is now the same or lower than this time last year, I cannot get a satisfactory answer, it is like the government want it held artificially high.

Comments

  • QrizB
    QrizB Posts: 15,531 Forumite
    10,000 Posts Third Anniversary Photogenic Name Dropper
    It's because (unless you're on Octopus Tracker or Agile) you're not paying the spot price, you're paying the price that energy compnies had to pay earlier in the year to advance-purchase the energy you're using now.
    If you were on a tariff where you pay the spot price, you'll also be running the risk of paying £1 a kWh later in the winter if/when prices rise again.
    N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Shell (now TT) BB / Lebara mobi. Ripple Kirk Hill member.
    2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 33MWh generated, long-term average 2.6 Os.
    Not exactly back from my break, but dipping in and out of the forum.
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  • Chris20012001
    Chris20012001 Posts: 1 Newbie
    First Post
    The current price of wholesale electricity is now 19% LOWER than this time last year at just 157p per MWh...
    Yet we are still charged such high amounts!

    Look at this link and find the bottom of this page to see how much electricity is being traded at; www.tradingeconomics.com/commodities

  • MattMattMattUK
    MattMattMattUK Posts: 10,317 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    Chris20012001 said:
    The current price of wholesale electricity is now 19% LOWER than this time last year at just 157p per MWh...
    Yet we are still charged such high amounts!

    Look at this link and find the bottom of this page to see how much electricity is being traded at; www.tradingeconomics.com/commodities
    Day ahead or immediate supply is not the same as month/year ahead, future delivery.
  • dunstonh
    dunstonh Posts: 118,713 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Chris20012001 said:
    The current price of wholesale electricity is now 19% LOWER than this time last year at just 157p per MWh...
    Yet we are still charged such high amounts!

    Look at this link and find the bottom of this page to see how much electricity is being traded at; www.tradingeconomics.com/commodities

    What has that link got to do with current tariffs?   You seem to be confused in the same way the OP is.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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