We’ve published an update on the wholesale market and we’d like to share it with the community.
Lockdown was in full swing when we last published an update in May. Since then, energy demand from homes and businesses is beginning to recover, and we’re seeing wholesale, network and policy costs rise as a result.
To summarise what’s said in the article:
- Network and policy costs are up by 5% since our last update
- Wholesale costs have risen by 12% since May, in response to recovering energy demand following lockdown
- Recent high levels of storage and low prices for gas has meant fewer gas exports from the USA to Europe, pushing wholesale gas costs up
- Higher carbon market prices are driving increased wholesale electricity costs
We’re analysing higher network and wholesale costs and looking at what this means for our overall costs this winter. We’re not changing our prices now but will continue to keep a close eye on how costs change.
I’d recommend having a read as there’s some great industry insights there, and I thought it definitely worth keeping community members in the loop. If you have any questions please ask away in the thread below and we’ll do our best to explain: