Two words: supply and demand.
The price of energy in the UK is partly linked to the price of gas (because gas is used to generate electricity). Over the past couple years, there was a global surplus of gas and the UK bought up a lot of this excess supply. With lots to go around, it became more affordable for local consumers.
There are several factors that affect the price of the market:
During the early days of Covid-19, the world slowed to a crawl and overall energy consumption dropped.
The past few winters have been relatively mild so there hasn’t been a huge demand for the UK's surplus of gas.
More than 70% of gas comes from the UK continental shelf and Norway, with the remainder coming from continental Europe and Global LNG. If anything happens with the logistics of gas transport, supply quickly drops and demand increases simultaneously.
More utilities are used in the winter than in the summer.
Wholesale energy is finally starting to correct itself to pre-pandemic highs. And along with this spike, we’re seeing Ofgem raising energy prices for its suppliers.
Due to the current price cap, unless you’re working with a company like LAMB, you’re most likely overpaying for your monthly energy service.
Look After My Bills scans the market for a great deal from their list of suppliers, and automatically switches users to the best deal available. Users don't have to do a thing. And, it's free! Members can cancel at any time for no cost.
LAMB was created to better protect people in the UK from being overcharged by greedy energy companies. They have saved over 500,000 members a total of £110,000,000 in total savings on their gas and electricity.
The average savings figure shown in our final notes is an underestimate. That number was estimated using the current price cap, which will almost certainly jump in October. The actual savings figure is likely to be an additional £50+ higher.
It’s common for energy suppliers (especially the Big Six) to penalize users for their loyalty by increasing their rates after a contract expires. If you think you’re on a good deal now, chances are you won’t be, come the fall. Leave it to LAMB to make sure that you’re getting the best deal available, even when the opportunities are lacking.
By signing up with LAMB (even in the current market)—you’re setting yourself up to save an average of £100 per year, plus an additional £50+ in the fall.