” of demand and supply factors, ranging from severe weather events around the world to a recovery in economic activities from the COVID-19 pandemic.
Such price spikes eat into the margins of retailers who sell electricity to consumers at fixed prices, while market volatility makes itNot much has changed in the global market environment, experts said. In fact, the onset of the Russia-Ukraine war has stirred concerns about further supply disruptions.
With the Ukraine war adding new complexity to global gas markets and elevated demand, it will be harder to secure long-term supplies at low prices, he added.Dr Broadstock noted that having rates with minimal difference to the regulated tariff “does not seem to be a sustainable business model” for electricity retailers.
That said, this situation can also be interpreted as retailers expecting SP’s regulated tariff to keep rising for some time.