The biggest single cost on a bill is the price of the energy.
The wholesale cost of the energy makes up approximately 40% of an electricity bill and 70% of a gas bill, with the remaining being TPCs, which have been continuously rising in recent years and can be volatile.
This pricing report will focus on the energy element of a bill to help you keep track and understand the wholesale energy market and the factors affecting the price of your contracts.
UK inflation hit 30-year highest, with the annual 7% rise in the consumer price index surpassing the highest rise since March 1992. Experts predict these are likely to continue to rise and remain at record highs throughout 2022.
Energy prices have continued to remain volatile, with some countries looking to swap to purchasing Russian gas in Rubles and others still looking to push for further sanctions on Russian oil. A ban on the importation of Russian coal being considered by the EU has also pushed energy prices higher.
Demand is expected to increase, as the new coronavirus cases in China fall and Shanghai, the most populous city, is set to allow ‘appropriate activity’ in areas where there have been no cases for at least two weeks.
Whilst energy prices are currently down slightly they are still extremely volatile, as Russia’s invasion of Ukraine shows no sign of abating and they could cease flows to Europe at any point, which could cause major supply disruption and prices to surge further.
Download the full report here (pdf) – 13th April 2022