Wholesale Energy Price Increase

Hi

As I am sure everyone has, I am questioning the email I have just received about the possible price increase.

Whilst I am not an expert in the Energy sector, hopefully you can clear up my question.

Why could are Bulb customers be affected by wholesale price increases when your energy is meant to be from renewable sources?

Darryl

The blog they put out alongside the e-mail states:

While we only ever buy 100% renewable electricity and 10% green gas, there is only one price for gas or electricity in the UK. There aren’t separate markets for green and non-green energy sources. The price is determined by what people will pay for energy at a particular time, regardless of the source. So, when the cost of electricity produced by burning gas goes up, so does the cost of electricity from hydro, biomethane, and all other green sources.

Hope this clears things up.

It’s a bit of a silly system and I’d imagine as more and more energy generation in the UK becomes renewable and therefore unaffected by these kind of factors then regulations may change.

Is 10% gas a typo? I thought it was 100% renewable for both.

If , as your statement , We think it’s really important that you know where your energy comes from.
Where we can, we buy 100% renewable electricity and 10% green gas from a number of independent renewable generators from across the UK., how does Austria and the oil industry pipeline fault effect your prices, there doesn’t appear to be any news in the media about any price increases so where do you get this information from about wholesale price increases

Is 10% gas a typo? I thought it was 100% renewable for both.
Nope. It's 10% biomethane for gas with 90% from other sources (but not fracking, at least currently - I believe they have said they're opposed to it).

No energy supplier provides 100% green gas but Bulb is one of the highest percentage wise. Some other companies (like Good Energy) carbon offset the rest of the gas by carbon reducing programs in developing countries, but it’s not a perfect solution (and Good Energy have a lower percentage that’s guaranteed to be bio-methane).

If , as your statement , We think it’s really important that you know where your energy comes from. Where we can, we buy 100% renewable electricity and 10% green gas from a number of independent renewable generators from across the UK., how does Austria and the oil industry pipeline fault effect your prices, there doesn't appear to be any news in the media about any price increases so where do you get this information from about wholesale price increases

The prices in Austria affect UK prices because traders in Europe come and buy gas in the UK when prices in Europe increase. This drives up prices in the UK.

Here are a couple of news articles about it: