How does the wholesale price of gas affect household energy
bills?- Published October 17, 2011 At RF Training we train
plumbers, electricians and gas fitters; as such we have to keep
on top of the current news in these areas as they may affect our
trainees and their customers. Recently, energy suppliers have
been pressured by the government to regulate and, ultimately,
lower the cost of their fuel prices as three of the big six
energy suppliers have raised their prices by a further 20%.
These firms have blamed the rise in the price because of the
cost of buying it’s energy from wholesalers. How does the energy
firm set costs for consumers? - Like any other retailer, they
buy their product from a wholesaler. - Prices are set based upon
the expected demand to the available supply - This means the
winter contract may well have a higher cost than the summer -
Transmission costs, also affect supply, for instance if a
pipeline or energy plant goes offline, costs will rise. - Prices
can also be set by market leaders