Gas Price Hike?

I’ve just read about the explosion in Austria and the impending energy crisis. Are Bulb’s gas prices about to rise?

Hi @Coppershoe409, no response from Bulb yet but we have a discussion thread ongoing here.

I’d guess that an immediate price hike is unlikely but it may affect the longer term pricing.

Hi @Coppershoe409 look out for the blog post on the website soon.

Hi @Coppershoe409 and @mowcius - the recent news has affected the wholesale gas price. We have hedged in advance, so there are no current plans for a price increase.

With the nature of a variable tariff, prices may change due to external factors such as this. If there is a price increase, we will give you 30 days notice. There should be a blog coming up shortly with an update on the recent events in the wholesale market and what that means for our members.

We have hedged in advance, so there are no current plans for a price increase.
Happy to hear that. I didn't think you'd be buying too much short notice gas.

I’m pleased to read Jamie at Bulb’s response on this.
I’m in the process of transferring to Bulb from a fixed price tariff (ending in March 2018) with Scottish Power. The explosion at the Austrian gas plant, coupled with the problems at the Forties oil/gas facility and the attendant initial big increase in the cost per unit of gas ( a jump from 57p to 90p per unit on Monday) caused me some concern. However, I gather that prices have stabilised since then as the market adjusts to the situation. I also feel particularly reassured by Jamies’ comment that Bulb had hedged in advance, with no current plans for a price increase.

Hi all, I’d just like to add a bit more info.

Jamie is absolutely right, we hedge 3 months in advance, so in the immediate term we won’t be affected. We have already bought our energy. But prices 3 months in time may still be affected. So we need to very carefully consider the implications. Keep an eye out for our wholesale update blog as that will contain our full thoughts on the likeliness of a future price rise.

Here’s our full update blog - https://bulb.co.uk/blog/wholesale-energy-market-update-dec

Hope it helps

Here's our full update blog - https://bulb.co.uk/blog/wholesale-energy-market-update-dec
:+1:

Seems like an open and honest update as always.

A comment about the graph though, having the scale on the right hand side not line up with the graph markings seems a bit sneaky, but also looks super weird.
It’s not far off but it feels a bit like when people compare a price change of one thing in pounds and the price of something else on the other side in pennies.
Jumping the bottom of the right hand scale up to £800 would give a very similar graph with the scale being £20 per division on both sides for slightly less weirdness.

Personally, I’d make the right hand scale £820 to £940 with £20 divisions to make Bulb’s line look more impressive. Isn’t it wonderful what you can do with graphs?

Why are you buying gas from Austria? Shouldn’t you be buying British Gas from Great Britain.

Good point on the graph. We’ve tweaked it so it starts from £800 on the right.

@Philip_S We do buy most of our gas from the UK, but prices here are affected by prices all over the world. Gas prices skyrocketed in Italy after the explosion, so people there were bidding highly on energy from all over Europe to keep their fires burning. This increased prices all over Europe.