Same price as Sainsburys

why is it that after only being with Bulb a matter of weeks I was given an quote of £76-00 now gone to £88-00 and now an increase of £7.96, I was better off with Sainsburys and they are know that they are not Green, Fossil fuel obviously is cheaper??

How can fossil fuel be the same price as Green energy, it makes a mockery

Hi there @0BobCollinson, there are really two bits going on here. The first is that all our electricity is renewable, but only 10% of our gas is renewable, so the rising gas prices affect us quite a lot. The other thing is that, essentially, the cost of electricity in the UK is pretty much the same for each area, regardless of the source of the electricity. The generators sell their electricity to suppliers at a cost per kWh which is either agreed with the supplier a few months in advance (known as a power purchase agreement, where a supplier and a generator agree to buy/sell a certain amount of electricity in a certain time period for a certain price) or it’s bought on the wholesale market at a price which varies day by day, but doesn’t vary depending on the source of the electricity. The generators are guaranteed a price for the electricity they produce for a few years by the government when they’re built, and after that they sell their electricity either through power purchase agreements or on the wholesale market.

So essentially all the electricity (and gas) in the uk is sold to the suppliers at the same price regardless of source. There’s a small additional price that we pay for renewable obligation certificates, to guarantee our electricity (and 10% of our gas) is renewably generated, and we have a few power purchase agreements, but beyond that we’re affected by the rising electricity and gas prices just as much as anyone else.

We do our best to keep our prices as low as possible, but that’s using things like our reliance on technology, our efficient work habits, and our variable tariff. Unfortunately, the fact that our electricity is renewable doesn’t help keep it cheap.