Gas prices

[hayfield]

I have been reading about some struggling with very high energy prices and it seems I have been sheltered to some extent partly due to having solar panels and finally realising I can save evin more simply by turning lights off when not needed, but I have just had an email from Octopus outlining the current situation and what may lie ahead for me and many others

 

The key thing is this: the cost of the energy we’re buying on the global markets to supply our customers is three times higher than it was a year ago.
At the moment, customers on standard variable tariffs are protected from price rises until the Government price cap is updated in April. That means for an average home, we are currently buying energy for about £2000 and selling it for £1300.
However, when the cap is updated, it’s likely a typical bill will rise over 75% compared to the same time last year. That’s another £60 a month: a huge burden for most homes.

 

I have never bought anything fixed rate (this dates back to my days in finance where banks offering fixed rate mortgages offered rates that guaranteed they never lost money (I ended up with a lifetime tracker at Bank of England base + 0.75 % when many were paying many times more for 10 + years). So when in September I changed supplier to Octopus I never realised the benefits of being on the standard capped rate.

 

I think the good thing for me is that when the new rate is applied in April my gas consumption will start reducing and we enter the warmer months, plus I have a healthy credit of £300 built up mostly from warmer months over payments. The thing is that all of us will have to pay more for our energy and repay the negative effects that have hit the energy suppliers .  I am hoping that it will not have as a dramatic effect on my payments especially as this year the benefit of my own solar panels and learned to turn things off