Energy prices are not falling fast enough
A fall in wholesale energy prices should mean cheaper gas and electricity bills - but the Big Six seem to have other ideas. We take a look at how you can get a better energy deal.
January 14, 2016
Drop in wholesale energy prices
As temperatures drop and we feel the need to put the heating up, there is a little bit of good news. Wholesale gas and electricity prices in the UK hit a five-year low at the end of 2015, according to the latest research compiled by market information provider ICIS.
So, what does this mean for consumers? Well, you’d think it would lead to the UK’s big six energy suppliers cutting their prices in line with falling costs. Sadly, that doesn’t seem to be the case.
While British Gas cut its gas prices by 5% in August, the other five big firms did not follow suit – arguing they are operating in a highly competitive environment.
Can’t the government step in?
We were pleased to hear David Cameron telling MPs in yesterdays PMQs that he was concerned energy prices are not falling as fast as he would like to reflect the fall in oil prices. However, we don’t hold out much hope that this “concern” will mean cheaper energy bills any time soon.
The Prime Minister’s comments come as a new survey claims three in five older people will ration their heating this winter amid fears over bills.
Energy Secretary Amber Rudd told ITV News yesterday that after plunging wholesale prices she is “pressing energy companies to put bills down”.
What can I do?
Good question. There’s no use waiting for others to sort this out – it’s time to get shopping for a cheaper deal. You are not being rewarded for your loyalty to your energy company so why not find a provider who will charge you less for exactly the same service?
Read our guide on why switching energy supplier can save you thousands and consider switching with us today.