This September has been an unstable month for the energy market – hear from our experts about what this means for your gas and electricity bills and how we can support you during this time.
Why have energy prices been increasing?
Wholesale energy prices have been rising in the past few weeks for a number of reasons:
- Demand for energy has increased in the last few months due to economies reopening after lockdowns
- Last spring was particularly cold, meaning that more gas supplies were used
- In recent weeks, calmer weather has meant that less electricity from wind turbines has been generated
- Some power plants are currently closed for maintenance
This has caused energy prices to reach record levels. Some small suppliers have had to cease trading due to not being able to afford energy at this higher cost and being unable to fulfil their commitments to supply gas and electricity to their customers.
What are Nabuh Energy doing to help?
British Gas took over the supply of energy from Nabuh on 27th April 2021. Nabuh’s 36,000 customers and approximately 70 employees were welcomed to British Gas, so since April 2021 you’ve been supplied by British Gas. Your account continues to operate under the Nabuh Energy brand.
British Gas are a responsible supplier in a strong financial position. We have hedged energy (bought in advance) to make sure that our customers can rely on us to keep their homes warm this winter. This is why British Gas have been asked by Ofgem (the UK’s energy regulator) to help customers of those smaller companies that have had to cease trading.
How do increases in wholesale energy prices affect me?
If you’re on a fixed tariff
With a fixed tariff your standard charge and unit rates will stay the same unless:
- You choose to change your tariff
- You change the way you pay us (e.g. stop paying by Direct Debit)
- The government or regulator does something that changes the price (e.g. an increase in VAT)
We’ll always give you as much notice as possible if there is a change to your price.
If your fixed tariff is coming to an end, your new tariff may be a little higher because of the rise in wholesale energy prices. However, agreeing a new fixed price tariff should help to protect you from any further price increases. Variable tariffs won’t protect you from possible future increases.
If you’re on a variable tariff
As wholesale energy prices rise, so do domestic prices. Wholesale prices make up around 40% of a typical energy bill. However, you are protected by the energy price cap which is a set limit on how much we charge you for the energy you use.
Worried about paying your bills? We are here to help
You may be able to lower your energy bills with our energy saving tips.
Before we let you go…
You may have read in the news that Ofgem, the energy regulator, has revoked the electricity supply licence held by Nabuh Energy Ltd over unpaid debts. Nabuh Energy was acquired by British Gas in April 2021. The unpaid debts are connected to the previous owners of Nabuh Energy Ltd and are not debts that British Gas are expected to pay. Nabuh Energy now operates under the British Gas supply licences and we are welcoming new customers who want to join British Gas under the Nabuh Energy brand.