An update on the energy market
How our energy contracts work
To keep our in-contract prices competitive, we buy the energy in advance. We fix the wholesale energy costs for the duration of our customers’ fixed price period.
Gas and electricity rates also include other ‘non-energy’ costs (third-party costs). These costs are made up of Government-set obligations and Network costs which are outside of our control. They make up about 60% of your total energy bill.
Wholesale energy costs
Businesses across the UK are facing steep increases in their energy prices due to volatile wholesale gas and electricity costs.
As countries started to recover from the pandemic, demand for gas and electricity began to increase. A shortage in gas has driven up the price energy providers pay for gas and electricity. That cost is passed onto consumers by all energy suppliers, including Opus Energy.
The increase in energy prices is affecting the prices we quote for new contracts, as well as the rates we charge for Deemed, Out of Contract and Monthly Plan. These three are the rates we charge customers when they don’t have a contract with us. They tend to be higher than our in-contract rates, so customers on these rates could get a better deal with a contract. But, the increase in wholesale energy costs does mean fewer deals are available right now.
We continue to review the rates we charge and if they change, we’ll let affected customers know and amend their rates accordingly.
Third party costs
Suppliers pass third-party costs through in different ways. At Opus Energy, we include them in our customers’ gas and electricity rates.
Unfortunately, third-party costs are increasing and will impact some of our customers’ rates. If you’re impacted, we’ll write to you to let you know.