What bearing does this have on the price we pay. I have selected to have green energy which currently happens to be cheaper. Is our cost based on a particular supplier or is all thrown into the general mix. So if prices go up because the country has to provide more energy increasing costs, what happens to the green energy supply cost. I know we don’t have a direct line from them but you/me are buying from a particular supplier.
@david5723 Amit tries to make the tariff as low as possible given wholesale costs. This is what we mean when we say that we ‘pass on’ wholesale price decreases to customers – when they fall, we reduce our tariff.
Because we try to stay close to our target margin, if wholesale prices do increase a lot, we must raise our tariff so as not to lose money. For this reason, it’s correct that if prices go up due to a spike in demand or supply constraints, this could force Bulb to raise our tariff.
What’s interesting about green energy is that right now it’s not much more expensive than brown energy. This is part of why Bulb can offer 100% renewable electricity, 10% green gas, and a competitive tariff. (The other part of the story is that we are continuously finding ways to keep our operation lean and efficient.)