Why are wholesale prices so high?
Energy prices have been rising since last year for a number of reasons relating to increased demand as we emerge from lockdowns, some global supply constraints on gas and a lack of wind powering the country's wind farms.
Although we work hard to keep our costs low so that we can absorb as much of these costs as possible, unfortunately, the latest increase in wholesale costs has been so significant that these prices have to be passed through to customer's bills which is why we've seen the price cap increase and fixed tariff price increase.
Why we’ve decided to temporarily remove our fixed tariffs
We’ve removed our fixed tariffs from our website. But it’s important to note that this change is only temporary. When wholesale prices stabilise, we’ll once again offer fixed tariffs online with 100% renewable electricity as standard.
You can read more about this on our dedicated energy market updates page.
Is there going to be a shortage of gas this winter?
On 20th September 2021, the Business Secretary assured Parliament that there is no risk to gas supply this winter.
Is the price cap going to be increased or removed?
The Government has committed that the price cap will remain in order to protect customers from rising prices. In February 2022, Ofgem will announce the level of the cap for the period between April and October 2022 which may well be higher again given the increasing costs.
I’m struggling to pay my bills, what can I do?
We understand that rising bills are going to be tough for many households, especially as furlough schemes end and we move into winter.
We’re fully invested in Ofgem’s voluntary scheme to offer extra support to customers who might struggle to pay their bills this winter. If you’re affected, we encourage you to get in touch with our friendly customer service team so we can discuss ways to help.
You can find out more about your options here.
We’re here to stay for the long term
Shell Energy is a well backed business, with experienced leadership and a strategy that plans for the long term with the necessary provisions to ride this wave, so our customers and colleagues can rest assured.
We have an important mission - to guide our customers to a better energy future and support British households in the transition to net-zero emissions. We remain committed to that purpose in the decades to come.
For more information on wholesale energy prices and why our rates are changing read our blog.