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July 13, 2017

Energy Market Update — July 2017

Five-minute digest

Summary

Discover what’s contributed to stable energy prices after 6 consecutive months of increases, and enjoy the most popular energy news articles doing the rounds.

Let us know if you find your update interesting, and if so, feel free to share it.

Market watch

Energy prices stable for

2 months

Following 6 consecutive months of increases

What’s behind this change?

The main factor is a decrease in wholesale energy prices, which are the prices that suppliers pay to purchase gas and electricity from the open market. It’s worth noting that even though wholesale energy prices have recently dropped, they remain 15% higher on May 1 2017 than they were at the same time last year.

You probably won’t see these wholesale price reductions reflected in retail prices — what you pay for energy — right away. This is because large suppliers typically purchase energy for standard variable tariff (SVT) customers over a long period of time, which can extend for up to two years or more. This can create a delay between the latest wholesale price movements and the costs suppliers incur for these customers.

What’s expected going forward?

Costs are forecast to rise for the remainder of 2017. As of October, suppliers will be required to make capacity payments, which are insurance policies that make sure consumers still have access to reliable and affordable electricity during blackouts. Additionally, the costs of supplying domestic customers and supporting renewable/low-carbon electricity generation are also expected to increase. 

As a Flipper customer, you don’t need to worry about navigating this ever-changing energy market — we do that for you, making sure you’re always on the best tariffs and never paying more than you should.

In the press

Enjoy the most interesting energy articles

Syrian solar saves lives in war-torn hospitals

A new solar project in Syria is saving lives by providing a hospital with reliable access to electricity.
Read more →

New energy marketing regulation kicks in

“No letting up” in Ofgem drive for principle-based shift.
Read more →

UK’s clean generation hits record levels in Q1 2017

Renewable electricity generation in the UK hit a record 24.8TWh in the first quarter of this year, up 5.1% from the same period a year earlier.
Read more →

Germany’s Russian gas pipeline smells funny to America

Angela Merkel says Nord Stream 2 is no one’s business but Germany’s.
Read more →

Flipper focus

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