Gas prices — Bulb Community

Gas prices

Why have you dropped gas prices in some areas but not others? I can not find an explanation from your email.

I received an email saying gas prices were staying as is but a friend in another part of the country gets one saying prices are going down...

Comments

  • I thought it was a national reduction, however it can be influenced by the following:

    There are three main things that influence how much energy will cost in a given area. These are:

    The amount of energy that a supplier sells in that region
    The amount of energy that a supplier buys from the generators in that region
    The amount of charges that the local distribution networks put onto your energy supply.
  • From Bulb blog: https://bulb.co.uk/blog/energy-price-watch-were-lowering-our-gas-prices-feb-19
    In some areas, the cost of supplying gas through the grid has increased significantly. This increase is so significant that we aren’t able to pass the saving in the wholesale cost of gas on to those members. As a result, there’ll be no change to the annual bill of members living in Merseyside and North Wales.
  • I wouldn't know why it would make a difference where the house is.
  • As 198KHz has quoted ......
    In some areas, the cost of supplying gas through the grid has increased significantly. This increase is so significant that we aren’t able to pass the saving in the wholesale cost of gas on to those members.
  • Yeah I read that, what I'm saying is why would it cost more in one area than another. It's all one grid.
  • LM123 said:

    Yeah I read that, what I'm saying is why would it cost more in one area than another. It's all one grid.

    Different companies operate different regions of the local distribution network. This could one of the reasons for varying costs..

    Map: who operates the gas distribution network? https://www.ofgem.gov.uk/key-term-explained/map-who-operates-gas-distribution-network
  • True, but. Cadent run 4 regions.

    Could it come down to number of customers in that area?
  • Hi @LM123, It is frustrating that we can't offer the same savings in all regions, but distribution companies, like the ones shown in the map @Allanr shared, have varying distribution costs which we can't control.

    The cost of maintaining the physical infrastructure needed to distribute energy to people's homes varies and is one of the key reasons distribution costs vary so much, even in the case of Cadent, where despite being the same company will charge differently in different parts of the grid. Ultimately these variants appear in your unit rates.

    The good news is that while prices can go up, they can go down too, so when your local distribution network is able to lower their charges, we will pass that saving on to you the next time we have a price change.
  • My prices have never gone down with Bulb and I have been with you a fair while.

    Seems a bit cartel like, why would Cadent ever lower their prices when you have to pay them?
  • Hi @LM123

    I'm certainly not the voice of authority on this but I can have a quick chat to our finance team who are better equipped to answer your questions if you want to know more.

    Here's what I know:

    Energy regions such as MANWEB can increase charges to energy suppliers to cover the costs of essential gas works. But they are heavily regulated so these costs cannot suddenly skyrocket. Generally, as with all financial things, inflation causes costs to slowly creep up over time.

    In theory, costs can come down once the 'allowed' revenue from work that's carried out has finished.

    If you're interested in what kind of work that distributors pay for, you can check out this website:

    https://www.gasgovernance.co.uk/indic/2019

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