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For the better part of the last decade residents of the United Kingdom have faced steadily increasing gas prices for residential and commercial utility bills. Gas plays a vital role in the UK’s infrastructure. Not only is the resource used to power certain appliances and heat homes, but it also contributes to roughly one-third of electricity development in the country. Unfortunately, the average residential or commercial customer in the UK has no control of the cost of wholesale gas because it is not sold directly to them. Gas suppliers across the country purchase gas from producers at home and abroad in order to keep supply in step with demand. The price that suppliers pay is the wholesale prices and consumers are left to pay that price plus the cost for suppliers to get gas to them. So, can consumers beat these rising prices? Determining Wholesale Gas Prices What makes findings cheaper wholesale prices so difficult for consumers is the complex set of interconnected factors that determine prices for suppliers. While certain suppliers across the country might offer lower utility prices to customers, all suppliers are constrained to a degree by the factors that contribute to setting wholesale prices in the first place. Of greatest concern to the UK is the dwindling supply of domestic gas. For decades now, British gas suppliers have relied upon resources harvested from massive operations throughout the North Sea. However, those resources are shrinking much faster than expected and that has forced suppliers in the UK to turn to Europe for imported gas to meet demand. As expected, the laws of supply and demand play into the equation here as well. Whenever supplies go up and demand wanes, prices tend to fall. This is most common in the summer months when there is less need to heat homes. On the other hand, winter months tend to stress supplies as more and more residents crank up the heat. Then there are infrastructure and trade demands. The UK’s gas supply is interconnected with that of mainland Europe as well as Russia and Asia. Gas producers are free to take gas to the market willing to pay the most for it at any given time. So, when prices dip in the UK producers can sell gas to suppliers around the world who might have higher demand and wholesale prices. Finally, there are the inevitable maintenance and emergency shutdowns that can strike infrastructure and lead to artificial influences on supply. When pipelines, storage facilities, or manufacturing bases need to be closed for maintenance it stress the supply chain and prices rise as a result. Beating Rising Prices Most residents throughout the UK have the freedom to switch to a different gas supplier if they feel trapped by high prices from their current supplier. Many regions of the country have more than one gas supplier operating in the area, making it possible to switch suppliers and save money in the process. There are a number of online tools that make it easy to research, switch, and save with just a few clicks of the mouse. The most popular in the UK is energyhelpline.com. Residents can start by simply entering their postcode and comparing prices from all the suppliers operating in their area. Comparison sites such as this are capable of finding prices from all suppliers in the UK including but not limited to the following: - British Gas - E-on - Edf Energy - ScottishPower - nPower Customers will then be showed three tariff rates available to choose from by the comparison engine. Many suppliers offer fixed, standard/variable, and internet tariffs for customers to choose from when making the decision on gas rates. Tariffs play a big role in how much an individual or business will pay in utility bills each month. Fixed tariffs provide customers with a set gas price for an agreed upon period of time. This tariff offers the comfort of a fixed utility bill each month, insulting customers from spikes in wholesale prices but also preventing potential savings when wholesale prices dip. Standard or variable tariffs operate in an opposite manner. With a standard tariff customers will pay the current market rate for gas, meaning that utility bills can vary wildly from month to month depending upon prices. Finally, there are internet tariffs that offer savings only to those customers who have switched online to a new gas provider. With many companies, internet tariffs can be either fixed or standard. Laura Ginn knows that with energy prices continuing to rise is makes sense to seek out the very best gas prices for her home energy supply. By using the comparison tools provided by uSwitch.com she can make sure she gets the very best deal available to her.
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