Will energy prices rise or fall? 1p challenge and cash ISAs
The Martin Lewis Podcast
The Energy Price Guarantee Is a Subsidized Price
The price that we pay for energy is a subsidized price. The regulator pushes the energy firms to buy their gas electricity substantially ahead. So many of them will be buying for next winter now. And it does that to ensure security of supply. There is a very tricky balance here, which is why the prices we pay are not based on that day ahead price, but based on a range of buying in the future.
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