Hi, could you please let me know what Bulb’s policy is regarding the massive gas price hike across the U.K. In the last week due to supply issues in the North Sea? Will you have to pass on these much higher costs or weather them until they come down back to more usual levels? Thanks.
As far as I am aware Bulb buy a couple of months in advance so unlikely in the short term. Should prices remain high then I would assume Bulb and other suppliers will have to review their pricing.
Basically as nobody yet knows what the longer term effects are going to be on gas prices and Bulb hedge 3 months in advance, we don’t yet know whether prices will be forced to go up or not. The big energy companies hedge in advance far more (as they have the cash to throw around) so there’s a possibility Bulb end up more effected than others.
There’s no blog post up yet about it but it’ll be here when there is and if prices are likely to go up, we’ll all get an email a month in advance.
Rest assured that if Bulb prices go up, it’ll be because they have to put them up, not because they want an excuse to make a bit more cash like the big 6 will probably go for.
@nick5474 Due to our Pricing Principles if wholesale costs do increase we may have to increase our prices. We do hedge as @mowcius says 3 months in advance, so we are well protected against short term rises like these however if there is a more long term trend we may have to look at increases. The blog is a good place to keep an eye on, we would write about any changes or our thoughts on the market there.
Here’s the blog update folks. We hope it makes everything clear. https://bulb.co.uk/blog/wholesale-energy-market-update-dec