Domestic electricity prices to fall by up to 20% – but we are still stuck with crazy prices on the business electricity supply
Domestic electricity prices should fall by up to 20% from 1st July due to a fall in energy prices on the open market and the subsequent lowering of the government cap. Ofgem, the energy regulator, has cut the price cap by £426 (from £2,500 to £2,074 – a 20% reduction) as a result of reductions in energy costs on the wholesale markets. This will see the average typical household bill drop by £426 (17%).
So while domestic bills will go down, this does not effect business energy supply (i.e. the supply for all the communal areas at Chelsea Bridge Wharf) which are averaging around 81p per Kw/H compared to a current market price of 31p per Kw/H thanks to a terrible deal which Rendall and Rittner locked us into for 12 months form October 2022. The ‘bulk retendering’ by Rendall and Rittner attracted little interest from suppliers leaving us at the mercy of the existing supplier EDF who took full advantage by hiking their rates by 333%. The outrageous increase in electricity prices accounted for around 80% of the service charge increases for Warwick (which went up by 40%+ from April 1 2023).
Business energy prices (unlike domestic prices) are not capped although some limited government subsidies are available . The Energy Bill Relief Scheme (EBRS) ran till April 2023 and was then replaced by the Energy Bills Discount Scheme (EBDS). Despite many queries to Rendall and Rittner from the author of this blog, it is still not clear whether Rendall and Rittner have passed these subsidies onto residents and there are many other unanswered questions which I have put in writing to Rendall and Rittner. The CBWRA committee have stated that they do not intend to challenge the Rendall and Rittner retendering at tribunal and seemed unaware of many of the key facts around the retendering until I made them aware of them. We cannot and should not accept this bulk retendering which has proven to be completely against our interests at Chelsea Bridge Wharf. Feel free to get in touch if you would like to be kept updated on developments around challenging the electricity retendering at Chelsea Bridge Wharf (residents@chelseabridgewharf.org.uk).