Wholesale energy down up to 85%; Retail energy down 10-15%?

goldConsidered

This is a massive scandal.

Over the last year wholesale gas prices have plummeted 72%; wholesale electricity by 85%!

Why are consumer groups not saying a word about this massive scandal that is destroying our economy and society?

QrizB

goldConsidered said:

This is a massive scandal.

No it isn't.

goldConsidered said:

Over the last year wholesale gas prices have plummeted 72%; wholesale electricity by 85%!

Peak-to-trough, maybe. As a quarterly average? No.

Regarging your unsubstantiated claim that "Retail energy down 10-15%?", the October 2022 Ofgem price cap for electricity was ~46p/kWh. The October 2023 price is ~27p/kWh. That's a fall of 41%.

And for gas, October 2022 was ~14.8p/kWh while Octobr 2023 is ~6.9p/kWh. That's a fall of 53%.

goldConsidered said:

Why are consumer groups not saying a word about this massive scandal that is destroying our economy and society?

Because there isn't one.

goldConsidered

Real figures to back my assertion regarding wholesale energy prices (these are irrefutable open market prices):

GAS:

December 2022: 380p / thm

29 September 2023: 107p / thm

A FALL OF 72%

ELECTRICITY:

September 2022: £580 / MWh

29 September 2023: £87 / MWh

A FALL OF 85%

debitcardmayhem

What was the delivery time scale energy suppliers cannot rely on spot rates and then suggest 12 months worth supply for a fix. The problem is one of storage, if Europe's gas storage is full there is no one to buy it, as for electric there is about 5 days of storage afaik

Netexporter

Half an hour ago the price was £117/MWh. The price changes every 30 minutes. The average spot price for the day doesn't reflect the overall average as, obviously, more is sold at the higher prices because increased demand drives the price up.

goldConsidered

Debitcardmayhem- earlier this year wholesale prices were down over 90%! This is not a recent phenomenon!

goldConsidered

Netexporter- wholesale prices have been down by an average of around 80% for the last 6 months!

Netexporter

goldConsidered said:

Netexporter- wholesale prices have been down by an average of around 80% for the last 6 months!

According to whom?

Anyway, prices always fall in the summer but longer term pricing for fixed deals has to take winter prices into account.

If you want near wholesale prices, why don't you go on Octopus Agile. I'm paying about half the SVT price, on average.

goldConsidered

Netexporter - One only needs to look at the open market prices which are available for the world to view!

matt_drummer

goldConsidered said:

Real figures to back my assertion regarding wholesale energy prices (these are irrefutable open market prices):

GAS:

December 2022: 380p / thm

29 September 2023: 107p / thm

A FALL OF 72%

ELECTRICITY:

September 2022: £580 / MWh

29 September 2023: £87 / MWh

A FALL OF 85%

Wholesale costs are only part of the cost of each kWh you buy.

The other costs that make up the price you pay have not dropped.

I just looked to check. The price cap in January 2023 was £4,279 and in July 2023 it was £2,074

That is a fall of 52%

If you take account of the other costs then prices are falling in line with what you would expect.


You may have forgotten that last year the government were subsidising energy costs so that you were never actually exposed to the real cost.

That would explain why you have not seen the drop in prices you might have expected.


There is no scandal in this respect.

goldConsidered

Matt_drummer - price cap is not what consumers end up paying. One has to look at the standing and unit tariffs. People know they are paying multiples of what they were paying merely 2 years ago. And yet wholesale prices are around the level they were August 2021…

This is a massive scandal, that some people are attempting to cover up!