Freezing Energy Prices Is Not Key to Change | Recorder Daily

Energy prices have been in the news a lot lately, with over 52 million customers in the UK who currently purchase energy from one supplier, or multiple suppliers it is no wonder that when utility companies hike their yearly prices up, there is uproar from the public.

Whilst justified, there are often key factors involved with this movement from utility companies in the UK. One is a rise in wholesale market prices, and the second is often based on a suppliers overall pricing/purchasing structure on the market.

If for example a utility company purchased energy both gas and electric on the market long, rather than short. They are committing to a price at that moment in time, but betting that in the future those prices will not go above what they have paid, and won’t go below what they have paid for on the wholesale market.

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Freezing Energy Prices Is Not Key to Change | Recorder Daily.