Cost of living crisis. Why have energy companies costs increased when the cost of gas is low?

[imstilljenny2]

Can someone help me understand this? I read somewhere that the cost of gas is low just now. What I can't work out is why the energy prices have risen to two to three times and plunged millions of us into a cost of living crisis. I get the war in Ukraine has destabilised supply however I haven't read anywhere that the wholesale price of gas is much higher. I don't understand!

Sky News covered this a couple of days ago

The gas we use today wasn’t bought at todays or yesterdays prices.

Plus also, some of the raise wasn’t just gas prices. I believe some of it was to raise money spent moving thousands of people to new suppliers when several companies failed. I think that was on standing orders.

also it depends on when the next price review is. It could possibly mean the prices won’t go up as much in autumn.

is money www.thisismoney.co.uk/money/bills/article-10830493/amp/Will-UKs-tumbling-gas-price-surplus-lower-energy-bills.html

This helps explain it

Thank you so much @Hugasauras and @Andromachehadabadday Makes sense now.

Not standing orders, the raise on standing charge was to cover the costs

It still seems a bit grim when the energy companies are making astronomical profits.

Also, if they double dip - which they do. They charged my dad five times and he never got the money back.

Did the same to others I know.

Then they are in profit, yet they say people aren't paying and owe them money.

Then, wouldn't they be in deficit?

I used to work for British Gas. quite senior in boiler service and repair. Then Smart metering.

This is absolutely true. My team were specialist and would regularly get people out through who had been charged multiple times. Usually then has been through 5 9r 6 agents and managers who all insisted that they hadn’t. If the call had been passed through you us in the first place, we could have sorted it.

although a lot of people do, also, not pay. We used to arrange warrants, make sure all the paperwork was correct. They would go out, force enters if required with the police present and put pay as you go meters in, then load the debt.

A small part of our bills is to cover those losses and energy theft.

Pure and utter greed.

You'd equally find that price of crud oil has come down a lot but we have not seen a reduction at our forecourts in fuel stations.

I found this article explains, in easy to follow format, a survey carried out by UK Government about the cost of living crisis so its not like our MPs and Politicians don't know what's going on. They should step in and make energy companies and big oil giants to charge a fair price based on CURRENT WHOLESALE PRICING.

The £ has fallen 11% against the $ in the past year and 5% in the last 3 months due to the weakness of the UK economy. This will directly feed into energy price costs.

Of course a huge chunk of the forecourt price goes straight to govt in tax and duty, so they have a vested interest in keeping prices high.
I heard yesterday that our actual fuel cost (ie what goes to the petrol companies) is lower than in other countries but I don’t know how true that is.

Cost breakdown today from DT
This is based on c £1.82 per litre
Govt gets c 83p of that

Uk is 8th highest in Europe for duty and vat on petrol and 6th highest for overall price.

For diesel UK vat and duty is the highest in Europe and it is 3rd highest for overall price

www.rac.co.uk/drive/travel/advice/european-fuel-prices-petrol-and-diesel-prices-in-europe/