The latest news from number of media outlets have highlighted a 7% increase in the energy price cap this April, putting further pressure on household bills. According to Ofgem, this rise is due to higher wholesale costs and inflation.
However wholesale market prices have been decreasing over the last three weeks and any news of the peace in Ukraine may prompt further reductions.
– Wholesale energy prices have fallen – UK power prices are down 4-5%.
– Gas prices have dropped, and coal values are at their lowest in a year.
– Renewable generation is rising, with wind output up 13% compared to the previous two weeks.
Given these shifts, there’s a chance that wholesale prices may reverse making the expected increase in April less significant than reported. While energy bills remain a concern, it’s important to look beyond the headlines and stay informed about real market movements is essential.
Could we see a downward revision in energy costs later in the year? Only time will tell.
