I left E-ON to join bulb based on a 30% bill saving per year. This year bulb have increased my bills by 30% . The reason? Wholesale prices have gone up. This is true but why have bulb not hedged and bought energy when prices were much lower? It seems convenient that now I am on their books they have reverted charges back to the original best alternative rates I was on at the time prior to leaving E-ON and joining Bulb. Prices better come down soon given wholesale prices have already receded from their highs.
Out of interest, how much have E-ON increased their prices? In a rising market, the switching game is to minimise the increase and not necessarily make an absolute saving. Don’t look at what you used to pay E-ON since that’s irrelevant, compare Bulb with the best E-ON could do now.
I done a price check and E-on would be £51 more expensive than Bulb for me.
And then exit fees if I had to leave them so could be £111 worse off.
I would suggest you do a price comparison and see if E-ON are cheaper than Bulb, I’ve just done one using my annual estimate usage and pleased to say E-ON weren’t cheaper than Bulb.
I can never quite fathom when individuals make a forceful statement such “prices had better come down” , what did you have in mind as to your solution?
As I see it those companies that did hedge against significant price rises are still more expensive than Bulb so therefore making more profit for themselves and not passing it on.
The opposite of prices forcefully going up... hope that’s cleared that up for you. The solution was already in place. Bulb failed to hedge and buy sufficient volumes of gas and power at lower wholesale prices much earlier in the year to protect against significant prices rises of circa 30%
I’m not an energy specialist, my understanding is that Bulb buy their energy three months in advance. Using your principle of buying energy far in advance could mean that if wholesale prices had dropped after Bulb bought their energy then they would have paid over the odds and indirectly they would at some stage have to pass this onto their customers.
You still haven’t answered the two questions what are you personally going to about “prices had better come down” plus would you still be better off if you were still with EON?
Bulb DID buy energy in advance at low cost. That’s why they were able to keep prices low for so long, and then subsequently require a big increase. It’s the same when consumers sign up for a fixed price tariff for 18 months or whatever. When the tariff expires you get a much larger jump in price than had you been on a variable tariff and suffered several smaller price rises throughout the same term.
I’m still not exactly sure what you expect to happen. Prices are going up across the board. In a rising market, the switching game is to minimise the increase and not necessarily make an absolute saving, and this appears to be exactly what you have done. You’re still making a saving but less better off than originally expected. That’s about the best you can expect unfortunately.
You say “prices had better come down soon”. Well, that’s not going to happen if Bulb have just done as you demand and purchased a bulk of energy to hedge against further price rises, now is it? If you have a reliable crystal ball to predict where prices are going, then please be sure to let Bulb know because they would definitely be interested in that sort of certainty.
Well that’s told me. I’m going to sit in a corner now and think about what I’ve done. One day I hope to be as good as you and so enable my energy bill to be pocket change as I’m sure yours must be. Aiming for a 30% saving must be just a fun pass time for someone of your astute financial acumen and the wealth it brings.
Perhaps I’ll watch Wall Street for some financial advice. Although to be honest I would prefer the Wolf of Wall Street lifestyle.
Bulb buy energy three months in advance and purchase it as such to offset market volatility - some suppliers attempt to forecast predicted usage but this isn’t a strategy that Bulb employs.
If we were to reference an investment strategy this would be akin to ‘pound cost averaging’ or ‘dollar cost averaging’ where we purchase our energy at a regular interval and do not attempt to adjust this based on the given market rate at the time.
If we were looking back on the market it would be beneficial to buy at the lowest point in the market but we aren’t able to see how the market fluctuates before it happens. If we were to purchase two years of energy now, then we may see the market cost significantly reduces in price, e.g. if there was a surplus of supply or if renewable energies improved and became more widespread, for example.
Our tariff changes in response to the wholesale market and we aim to be as transparent about this as we can - we have seen decreases as well as increases and we never like to increase our prices and do not tie you in with fixed contract lengths or exit fees if you did wish to switch.
It would be great to be able to purchase energy at the lowest price point but we’ve decided to opt for a stable and predetermined purchasing strategy to mitigate uncertainty and remain competitive as we can’t predict with certainty when this lowest price point will be.