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.