Wholesale costs are changing

Hi everyone :wave:

Today we announced that our prices are changing. Our latest blog post explains the changes.

On 21 June our electricity and gas prices are going up, along with our daily standing charge. A typical member will pay £1.33 more for their energy a week. We’re sorry to put prices up for the second time this year, at a time that we know is difficult for lots of our members.

While we hate doing this, if the cost to supply energy goes up, we do need to change our rates to reflect this.

Since our last update, the cost of supplying energy has continued to rise dramatically, driven by higher wholesale energy costs. These costs are now 29% higher than they were in March when we last changed our prices – a significant rise in just two months. These costs have doubled since this point last year.

If you have any thoughts or questions about this at all, you can post them in this thread and we’ll get back to you ASAP.

Best,

Mel

We keep hearing in the media that green energy is becoming cheaper and cheaper as more wind turbines and solar panels are being installed - so shouldn’t our electricity prices become cheaper and cheaper?
Bulb is proud that they only supply renewable energy - so why are they reliant on general wholesale electricity prices which include non-renewables?
Quote: And of course, all of your electricity is 100% renewable and your gas 100% carbon neutral.

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Yet they have just announced yet another increase in charges. …
It’s now at the point we wear woolly hats and use hot water bottles to keep warm…

I thought my electric came from wind and solar ? Has the cost of wind and Sun gone up?

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Hi @Oldsirhippy and @craigdiz :wave:

Thank you for your questions.

We always supply 100% renewable electricity and 100% carbon neutral gas. However, renewable generators will sell to whoever is prepared to pay for their energy (and rightly so!). This means that when fossil fuel prices change, renewable prices change too.

There are also other costs to take into consideration such as network costs. You can see more about this in detail on Ofgem’s Supplier Cost Index.

Let me know if you have any other questions.

Thanks,
Mel :sunflower:

But Mel your wholesale cost of electricity today is cheaper than when you set my commercial rate at 13.02 p per KWh back in Sept 2018- non of this is justifiable.

Whole sale rate in Sept 2018 £67 per megawatt ( 6.7p per KWh) it went down to £24 per megawatt in April 2020 ( a 65 % reduction in wholesale rates - and not one peep out of you in terms of passing this on ) it has now risen to £55-58 per megawatt, still 17% cheaper than the peak in 2018 , keep banging on about wholesale price increase - this is absolutely a load of old tosh - and you know it !

On the back of this so called 36% increase in wholesale rate ( which is only about 38-45% of unit rate you pay ) you have put up my commercial tariff to 17.68 p per kwh. I have 5 commercial electric accounts with you - my average spend per account is about £5000 per year - this now means ( if I stay with Bulb) that my electricity cost will rise by £1800 per per site , ie about £10,000 . I can’t suddenly charge my customers an additional 36% but yet you as a company can ? Where is your moral compass !

And now you want to charge more ? The wholesale rate will fall in the very near future , as the weather warms up, it always does, you are exploiting this and profiteering , Bulbs behaviour is reprehensible .

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You quote Martin Lewis as giving 3 reasons for the wholesale price increases but none of them should apply to renewable energy since winds and sunshine have been pentiful, you have no ageing power stations to cause outages and we are not buying gas, so why are your prices rising, please ?

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Bulb does not have any generators of their own - so they buy the power from organisations that do generate it. However, other energy companies are also trying to “greenify” their tariffs and so there’s a bit of a “bidding war” going on where company A says “we’ll pay £X per megawatt from your solar panels” but then company B says “we’ll pay £X+£3 per megawatt” - guess which one the solar power producer/generator is going to pick: leaving company A either having to pay more to get power (and hence increase prices) or shutdown.

Seems to me then that we shouldn’t be supplied by 100% renewable sources, i.e. get off the green hype train
Where do I make that choice? :stuck_out_tongue:

This is a joke prices only went up at start of April now they going up again less than 3 months after the last price rise. If prices keep going up and end up over 20p a unit I will really have to start looking elsewhere for my electric.
I also don’t see why my daily standing charge as to increase from just under 21p to just over 24p thats a big increase.

Darren

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Please can you clarify if energy prices for electricity are rising then why does the standing charge rise a higher percentage than the cost for the fuel? It would seem fairer to have the useage amount rising in reflection of the rise in energy prices so be have some freedom to reduce our useage in some way. However with standing charge increases we have no way of influencing this cost through careful energy saving methods but this seems to only benefit Bulb’s income growth. I would like to have an explanation as to why Bulb has chosen this route in their increases. Thank you.

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Totally agree - we need an explanation as to why standing charges are increasing so much.
We have no freedom over these costs other than change supplier!

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After an already substansial rise had the email were getting another next month.Think enough is enough really. Dontwant to be baffled with wholesale prices etc. Fact is theres 2 year fixed rates with reputable firms that are cheaper. I daren’t imagine what ill be paying with bulb in 2 years at this pace.

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Yep octopus offering fixed 2 year at least I can sleep at night knowing I won’t be getting another “ sorry we are changing our prices e mail ! “
My nerves can’t stand it their rates about the same my night rate has gone from 9.5p a kW to 13.87 nearly a 50% increase ridiculous

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Interesting that I received the sorry we are raising prices again but this morning there is an article in the Guardian that
May gales will help Britain produce massive amounts of electricity.

Time to look for a new supplier

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Time to leave Bulb. Wind and Solar has goner down in prices considerably and energy demand has gone down so prices should have fallen and not gone up an the huge increase in the Standing Charge is not even effected by energy prices. These increases simply cannot be justified it is just profiteering

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Yes I agree timer to leave Bulb. I have had enough of their profiteering and treeting their customers as mugs

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Why an increase in the standing charge; should not change can you please post the legal status of why you are increasing the standing charge this is a hidden tax increase?

Yours M Fletcher

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Quick to increase, slow to decrease charges.

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I agree standing charge is going up by a lot this time round and we need someone from Bulb to tell us why standing charge is going up by so much.
The standing charge price increase this time round is just a joke and as I said it’s going up by a lot. Yet wind, solar and hydro power prices has gone down a little or stayed the same.
Hopefully this will be the last price increase from Bulb this year but if they put prices up again before end of year I will really have to think of looking elsewhere for my electric.
Is any other company also putting there prices up again so soon after the last price rise or is it just Bulb.

Darren

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