33% Increase in gas price!

Hi,

Blimey! … In the West Midlands area the unit price for gas will increase from 2.96 to 3.94p/kWh (an increase of 33.1%).

Could you please explain the seeming disparity between this figure and the 20% increase in wholesale gas prices which you mention in the blog?

Thanks.

Hi, I’m in the same boat as my monthly payments have risen by 23.85% due to this. I’m asking the same question…

Hi @Bill at Bulb,

I’ve been reading many of your replies concerning the price increase throughout the day, and you’ve done a great job in responding to peoples’ queries.

However, you still don’t seem to have addressed my initial query regarding the disparity between the 20% increase in wholesale gas prices and the much higher rise which I and many others have seen in their unit gas prices.
I see that you have mentioned in previous posts that there is a general shortage of gas reserves for the upcoming Winter months, however this would surely already have been factored into the 20% rise in wholesale costs, and thus is a reason for the price increases rather than an explanation as to why the increases are significantly higher than the stated 20%.

Any explanation would be most helpful. Thanks.

Hi @AnthonyO - Sorry about that mate - I didn’t mean to miss you!

Our price rise Blog mentioned that wholesale gas prices had risen 20% in August alone. Our August blog also mentioned that they’d increased 5% over June and July: https://bulb.co.uk/blog/wholesale-energy-market-update-august - so, since our last price change it had moved ~25%.

Another community member has been posting the change to Natural Gas futures as well which I have found really helpful: https://theice.com/products/910/UK-Natural-Gas-Futures/data?marketId=142527&span=3
It’s showing a worrying upwards trend with this that we hope evens out soon. I’m aware that it isn’t covering all of the increase here - I’d have to ask a member of our pricing team where the rest is. My initial reply would be that we hadn’t increased our prices fully in line with the actual prices in previous price rises, as the graph in the August blog shows:

And this may well account for it - we had to increase it further than the actual rise because we’d been undercharging before. Full disclosure here though, I don’t work for the pricing team, and I don’t know the exact reason for this. I’ll do my best to find a more comprehensive answer for this and share it with the community.

Hi @Bill at Bulb,

I see that you have mentioned in previous posts that there is a general shortage of gas reserves for the upcoming Winter months, however this would surely already have been factored into the 20% rise in wholesale costs, and thus is a reason for the price increases rather than an explanation as to why the increases are significantly higher than the stated 20%.

It certainly has been factored in, and sorry for adding to any confusion. It’s part of the reason for the rise in wholesale costs, but it’s also something that, until resolved, will continue to drive high prices, i.e. as long as we have a shortage, prices will be higher until our storages are refilled and then prices should normalise.

Again, apologies for missing your earlier post - I’ll post back when I get a more concrete answer on why certain regions have differing increases.

@“Bill at Bulb”

I’d be interested to know the answer to this also.

Also agree you’ve done a good job handling queries and complaints.

Bit of feedback for Bulb overall.
I know you’ve stated since August there may be rises.
I know you’ve stated this is (from bulbs perspective) in line with market rises and due to several reasons.
I know it was in the sign up website and emails.
However as someone who switched to bulb less than 24 hours ago, I have to say it would have been better managed if a date had been given as to when the potential upcoming price increase decision would be announced giving those who were thinking about joining more ability to make a decision and not left feeling deceived.

Also - How is it possible for me to work out that the quote I’ve been given actually is lower rather than just a quote which is priced low to then tell me I am using more energy later on or that there won’t be another price rise in December, January or February?

Seriously considering going back to see what other options are but would appreciate the full picture first?

@"Bill at Bulb"

Also - How is it possible for me to work out that the quote I’ve been given actually is lower rather than just a quote which is priced low to then tell me I am using more energy later on or that there won’t be another price rise in December, January or February?

If you obtained a quote via a comparison site then there will be link which gives a breakdown on how the total was arrived. This will show the unit costs prevailing at the time of quote. Generally speaking a more accurate quote is given when you enter your previous 12 months energy usage in kWh rather than size of house etc. Any energy used later on is purely an estimate ideally similar to the previous 12 months. It is a crystal ball to know if wholesale prices and hence retails prices are going to change in the future.

However as someone who switched to bulb less than 24 hours ago, I have to say it would have been better managed if a date had been given as to when the potential upcoming price increase decision would be announced giving those who were thinking about joining more ability to make a decision and not left feeling deceived.

Also - How is it possible for me to work out that the quote I’ve been given actually is lower rather than just a quote which is priced low to then tell me I am using more energy later on or that there won’t be another price rise in December, January or February?

Seriously considering going back to see what other options are but would appreciate the full picture first?

I absolutely agree. I feel deceived.
Going to check out EDF prices

I got an email saying my energy will cost £700 more each month because costs have risen 18%. My usual cost is around £46 a month. This must be a typo!?

Hi @AnthonyO and @DominicP1 , thanks for your Patience. I’ve been given an answer to the gas question. It was as I expected, but they’ve confirmed to me that our gas unit rate has historically been low compared to our elec rates.

Because our prices reflect the wholesale costs of energy, our gas unit rates required a larger increase when compared to our electricity unit rates.

@DominicP1 - I’ve added your feedback to the list I’ll be feeding back to the wider team to improve in future. As for knowing if your quote was accurate. I’d advise finding a recent bill - this will show your annual usage. On your Bulb account you can then multiply your usage by the unit cost, add the roughly £90.00 standing charge, and divide it by 12 to see how close we are.

@SF_1 it’s almost certainly an error, I’ll send you an email now

@Bill at Bulb, thanks very much for all the information you’ve provided in response to my question. It all makes complete sense to me!

It’s such a refreshing change to find an energy company that not only runs its business in an ethical and principled manner, but also puts in the effort to communicate meaningfully with its customers.

Keep up the good work!

Hi @AnthonyO - Thanks so much for the kind words, and your patience with me getting more info on this - although it’s clear that many people aren’t happy we think it’s really important that all our members can talk through everything so that they can make informed decisions on what they want to do.