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Wholesale prices drop by 12% for gas and 17% for electricity

Since the last energy price rises in the Autumn, wholesale energy prices have dropped by around 12% for gas and 17% for electricity. Over the year, this equates to a 15% reduction in overall wholesale energy costs to suppliers. Independent price comparison site energyhelpline has investigated what impact this ought to have on consumer prices. Mark Todd, director of energyhelpline comments:

“Our research shows that wholesale energy prices have dropped dramatically since the Autumn when the price rises occurred. Wholesale gas prices are down 12% and electricity is down 17%. By our calculations, suppliers could therefore pass through a price reduction of £77 (6%) to a typical household bill. This would bring down a typical energy bill from £1,315 a year to £1,238 a year giving some respite at last to hard pressed families who continue to struggle to make ends meet. Across 26 million homes this equates to £2 billion.

For too long energy customers have got a rough deal from suppliers with prices rising rapidly when wholesale prices go up but coming down very slowly when wholesale prices drop. Now is the chance for the suppliers to show that they have changed and to pass on the savings that they are getting. Now is the time for the suppliers to start to restore trust. I urge them to cut their prices soon.”

Created: 10th Jun 2014, Last Modified: 10th Jan 2019, Switchomatic

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