Freezing weather is pushing wholesale gas prices up, causing one supplier to hike its prices
Plummeting temperatures across the UK have caused a sharp rise in wholesale gas prices today, leading one supplier to hike its prices.
Within-day gas prices jumped 25 per cent to 81p per therm while day-ahead prices were up 6p at 73p per therm as temperatures fell below zero degrees.
The rise in wholesale prices caused small energy supplier Bulb to hike its prices by 2.8 per cent.
Bulb, which bills itself as the UK’s fastest-growing renewable energy supplier, was forced to raise prices by £2 per month from April due to sustained higher prices in the wholesale gas and electricity markets.
Bulb’s 300,000 customers will now pay an average of £879 a year compared with £855 a year previously. Its tariff still remains more than £200 cheaper than the average default tariff from Big Six suppliers, however.
“When wholesale energy costs move, so does our tariff. These costs have been rising and are now around 11 per cent higher than they were in July of last year,” said Bulb co-founder Hayden Wood said.
“We remain committed to providing our members with energy that is simpler, cheaper, and greener,” Wood said.
Read more: Bills may jump as wholesale electricity prices soar in November