E.ON, British Gas, Scottish Power, nPower and now SSE have announced domestic energy price cuts.
As predicted by us last week that leaves one outlier remaining, EDF Energy.
With the media hot to trot on the latest energy news and the faux expression of concern from price comparison websites looking to make a quick buck out of panicking switchers, it is good to have the safe haven of business energy.
Whilst the wholesale market HAS collapsed over the last 6 months.
We know that wholesale market costs only make up between 44% (electricity) and 59% (gas) of the overall retail price (excluding VAT and CCL).
As a result we also therefore know that the fall in the wholesale price will only affect a proportion of the retail price paid.
But that’s where the bad news stops and the good news starts.
Taking the cheapest price on offer in the business gas market over the last three months we can see that it has fallen by 8.99% or in other words 44% of the overall wholesale price falls have been passed through.
Taking into account the hedging strategies adopted by the suppliers to insulate themselves and customers from the volatility of the underlying wholesale market, and therefore the lag of the impact of the wholesale cost on the retail price this is a good deal, a very good deal.
Indeed it’s nearly TWICE the average fall announced by the 5 Big 6 energy suppliers to date.
All eyes may be on EDF Energy but they really should be on the business energy market, that’s where the real action happens and the real savings can be made.