The impact of rising wholesale energy costs

Wholesale energy costs have more than doubled over the last 12 months, however UW is fully committed to provide fair prices to our customers.

Due to Ofgem's recent price cap increase, see how these changes impact customers.

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10 June 2021 - You might have picked up in the media that wholesale energy costs - the price suppliers pay to buy energy - have more than doubled over the last 12 months, and shot up 30% since March this year.

We fully appreciate that any increase in the cost of essential services like this won’t be welcome news, and it’s something that has impacted all energy suppliers, including us.

However, we’re still committed to keeping our prices low and wanted to share how the energy tariffs we offer are still good for your wallet - and the planet.

Fixed tariff price changes

Today we’re launching our new Green Fixed tariff. Unusually, this is slightly more expensive than some of the variable energy tariffs we offer at the moment, by about £4 a month. However, as a fixed tariff, it guarantees no more price rises for a whole year and it comes from entirely renewable electricity sources.

In fact, whether you want the peace of mind of knowing what you’re going to pay over the next 12 months with our Fixed tariff - and want to protect against further price increases expected in October - or want to pay less today by choosing our Variable tariff, they both offer great value and are extremely competitive compared to other suppliers.

The legal bit

*Source: Energy Linx
Based on a typical annual consumption of 2,900 kWh electricity and 12,000 kWh gas across all 14 regions.

***Terms and conditions apply. Find out more here

Committed to providing you fair prices

Over 15 million people in the UK, including Octopus Energy and Bulb customers, have seen their gas and electricity bills soar in recent months.

As part of our commitment to providing customers with fair prices, we’ll continually review the market and wherever possible adjust prices as our costs - such as wholesale energy prices - change.

We will always try to keep our prices as stable as possible whilst giving you our best value service so you can concentrate on the things that matter most to you. And as ever, the more services you take with UW, the more you save.

Helping more customers go green

For customers who would like to be on our Variable tariff but also want to help the planet, we are delighted to confirm we will also be launching our first Green Variable tariff. 

All Double Gold customers, whether on a Fixed or Variable tariff, will now benefit from 100% renewable electricity – a small step towards reducing our impact on the planet.

What’s more, when you sign up to UW we’ll also plant a tree in your name in the UW Woodland in the Brecon Beacons. And if you decide to take a free smart meter, we’ll give you an extra £50*.

You can read more about the UW Woodland project here

UW Energy Director, Steve Veal said: ‘We’re delighted to have two great value tariffs in the market being backed by renewable energy. This makes it even easier for our customers to do their bit for the planet and take a small step in helping the transition to Net Zero.’

Thinking of switching your services to UW? Find out more and get a quote.


Why are fixed tariff costs changing?

Wholesale costs vary across the year. So from time to time, we update our tariffs if the costs change significantly. The first half of 2020 saw wholesale prices hit historic lows due to global lockdowns. As these have eased, demand for power and gas has risen once again, and prices have followed with wholesale costs up 29% since last March.

Which tariff should I choose - Fixed or Variable?

For peace of mind it may be best to take the Green Fixed tariff, as it’ll likely be cheaper over the course of the next 12 months with price increases to Variable tariffs expected in October this year.

Why else should I take our Green Fixed tariff?

  • It provides 100% renewable electricity – that’s a huge contribution to making our planet greener

  • We plant a tree for each new customer in the wonderful UW Woodland you’re creating in the Brecon Beacons.

  • We give customers £50 when they take a free smart meter*.

What offers do UW have on other services?

With Broadband at just £20 and our market-leading Unlimited Mobile SIMs at £20 for the first SIM and then just £10 each, we’ve got an unbeatable offering right now. 

UW offers substantial savings and convenience over the long-term as the UK’s only genuine multi-service provider.

Is the Green Fixed tariff available to everyone?

It’s available to customers who switch all their home services - energy, mobile, and broadband - to us.  

Customers' prices will remain fixed, protecting them against potential increases over the next year.

Why is your Fixed tariff more expensive at the moment?

Due to the way the industry regulator Ofgem’s price cap works, our Variable prices remain lower at the moment. However, with a Variable tariff, prices can go up as well as down.

Unusually, the Green Fixed tariff is about £4 a month more expensive than the Variable tariffs we offer at the moment. However, it guarantees no more price rises for 12 months because the price is fixed.

Our Fixed tariff is a bit like an insurance policy: industry experts are predicting that the Ofgem Price Cap will rise significantly this October, and a fixed tariff protects customers against a further price increase later in the year.

The legal bit

*Terms and conditions apply.

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