Why are wholesale prices so high?

There are a number of reasons wholesale energy prices have increased around the world. These include a cold and longer than usual winter in 2020/2021, which put pressure on supplies, high demand in Asia, and increased dependence on gas from international markets.

Why we’ve decided to temporarily remove our fixed tariffs

Right now, wholesale costs are so high, offering you a fixed tariff would mean setting a price that's higher than the price cap. As this doesn’t represent a good deal for our customers, we’ve temporarily removed fixed tariffs from our website. 

When wholesale prices stabilise, we’ll go back to offering fixed tariffs online with 100% renewable electricity as standard.

Why has the price cap increased? 

As a supplier, we’re currently buying energy at a much higher price than the price cap will allow us to sell it for. Because of this, Ofgem has increased the level of the price cap. The price cap is calculated by Ofgem to reflect a fair price, based on the true costs of supplying UK homes with gas and electricity, and also to protect you as a customer.

I’m struggling to pay my bills. What can I do? 

We’re committed to giving our customers a helping hand when they need it most. If you’re struggling to pay your bill, we want to do all we can to support you. 

The most important step you can take is to get in touch with our dedicated team. Once you’ve explained your circumstances, we can talk you through the ways we can help. 

Find the most convenient way to contact us.

Our dedicated team will: 

  • Listen to you, and find out how best to support you
  • Get to know your circumstances, in particular whether you or anyone in your household is vulnerable
  • Work with you to find suitable solutions and ways to pay 
  • Offer energy-efficiency advice to help you lower your energy use

 

Possible solutions include: 

  • Agreeing an affordable debt repayment plan
  • Creating an instalment plan for future bills 
  • A short-term payment holiday
    • Joining the Fuel Direct Scheme
  • Accessing our £5 million support fund

 

If you think you won’t meet a payment for an agreed payment plan, please contact our team on 0800 011 5166 or paymentadvice@shellenergy.co.uk as soon as you can. 

Please note, this email address is only for customers already on an agreed payment plan. For other queries, please email customer.services@shellenergy.co.uk

You can also visit our support hub to see what help is available to you.

We’re here for the long term 

Shell Energy is a well backed business, with experienced leadership and a strategy that plans for the long term, so our customers and colleagues can rest assured that we’re here to stay.

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.