Oh gosh, wholesale gas prices went up in your graph at the exact time of the invasion of Ukraine
thank for admitting I am correct
by the way Ellal, here is some information to help with your lack of knowledge:
"Alex Staker, Head of Commercial Operations at Bionic, explains why these price drops aren't always passed on to customers: "It's to do with the way energy is bought and sold and the risk associated with this process. To be able to offer fixed rates, energy suppliers need to buy power in advance of selling it to customers. This means the rates at which they have bought wholesale energy to sell today might differ from the current wholesale rates.
"Suppliers also need to factor risk into their price calculations, in much the same way as finance providers factor risk into the prices they charge for credit.
"Energy suppliers are continuously buying energy to make sure there's enough to cover demand. If demand exceeds supply then they need to buy more at current market prices to cover the shortfall. But if supply exceeds demand, then suppliers need to sell the excess energy back to the grid - if the day-ahead price is lower than the price they bought the energy for, then they'll lose money.
"When the market is so volatile, the risk to suppliers is greater and so prices go up. And this is also part of the reason why it can take time and a consistent run of lower rates for any price drops to be passed on to customers."
Why Are Energy Prices So High? Are They Going Up? | Bionic
We look at why energy prices have been increasing and ask will they ever come back down? Will a price cap rise affect businesses? And what can you do to save money?
bionic.co.uk
