As wholesale prices for global energy have dropped dramatically in recent weeks is bulb about to reduce prices
Bulb tends to reduce prices as soon as the average/typical household will save £20 or more per year (see their prior blog post at https://bulb.co.uk/blog/keeping-promises-weve-cut-tariff for an example). I believe the reason they don’t reduce it sooner is to allow for the wholesale market to settle (you don’t want to cut the tariff and then have to put it up the next month as it was just a temporary dip) and they don’t put up prices ‘immediately’ when wholesale prices start to rise - they have to have risen above a certain amount (again, to allow for temporary jitters) before they do. I would hope if the prices stay low until sometime next month, we should hear of a drop in January.
The issue with price changes to domestic supply is that the energy supplier needs to give 4 weeks notice before a price change takes effect. Therefore energy suppliers need to predict the price in a min 4 week period and adjust accordingly, this means that energy suppliers can profit or loss money over this period.
Bulb’s price drops tend to happen immediately after an announcement. It’s only for price rises that a company has to give notice. For those rises Bulb also gives customers 60 days of notice.
I’m really hope the wholesale price does stay low and Bulb drop prices, but not really because I care that much about the lower price, more that it might stop the endless threads on people complaining about the rises and allow some decent conversation on here again.