We’re lowering our gas prices. The average Igloo dual fuel bill will be over £175 cheaper a year, and our tariff will be one of the most competitive on the market.
Offering transparent, competitive pricing has always been our goal at Igloo. We offer one simple variable tariff giving our Igloo Pioneers the peace of mind of knowing they’re always receiving our best rate. Part of how we achieve this is by closely monitoring the wholesale market, and by regularly reviewing our pricing.
Having a variable tariff means that when prices fall we’re able to pass savings on to our customers much faster, and with three price drops in 2019 this is something we have a proven track record for delivering on. All our customers will be switched to the new pricing with no action required on their part.
This new pricing will come into effect on the 15th April.
This price drop explained
For this price drop we’ll be lowering our gas prices. Our gas standing charges will remain the same. The actual price drop varies slightly per region due to distribution costs, but is a saving of between 22% & 30% on our previous gas prices. After this price drop the average Igloo dual fuel bill will be over £175 cheaper a year and, one of the most competitive tariffs on the market.
For now, our electricity prices will remain the same. You can read more about this further down the page.
What’s going on in the energy market
The wholesale energy market is ever changing. Prices fluctuate which has a direct effect on the price we pay for your energy. Wholesale gas pricing has been volatile for some time and with the additional global impact of COVID-19 gas prices have fallen significantly. We now expect them to stay low for the coming months so we’re able to pass savings onto our customers.
Wholesale gas costs are much lower than they were this time last year, with gas storage facilities in Europe filling up resulting in lower prices. This can be attributed to the milder winter we’ve experienced this year, perfect conditions for maintaining gas reserves and ensuring a lower wholesale price. Any good energy supplier can then pass savings on to customers. Other political developments such as disputes with pipelines can cause wholesale pricing to fluctuate. Fortunately, the current political situation ensures minimal disruption to pipelines, which again ensures a well-maintained gas supply.
On the electricity side of things, wholesale prices have again continued to fall, although not as steeply as gas, but still resulting in a lower wholesale cost to this time last year. The cost of buying wholesale electricity may have fallen, but the overall cost of supplying electricity has increased. Our distribution, policy and renewable energy scheme costs have all increased from April 1st. This increase in our supply costs has meant in this case we haven’t been able to lower our electricity costs, but we haven’t put them up either. As always, we will continue to monitor for any more developments and if possible, pass these on to our customers.
Our promise to you
Our promise to you is to always provide transparent, competitive pricing. We do this by offering one simple variable tariff, so every Igloo Pioneer knows they’re receiving our best rate for their area. This will be our fourth price decrease in 18 months.
One of the main benefits of our single variable tariff is that you never have to worry about changing tariffs or being switched onto an expensive standard variable tariff. You can also be sure that the price you pay is regularly reviewed and when savings can be passed on, they are.
The latest OFGEM price cap really highlights this fact and the benefits of a variable tariff. Many customers who have signed up to multiyear fixed deals face being locked into expensive pricing that doesn’t change with the times or having to pay expensive exit fees to leave their contract. The new OFGEM price cap of £1127 is over £322 more expensive than what the average Igloo Pioneer customer pays for their energy annually, based on typical use. Any energy supplier pricing their tariffs to the OFGEM price cap does not have their customer’s interests at heart.
Ongoing support during COVID-19
Alongside this price drop we will continue to offer support for our customers during the Covid-19 pandemic. We want to again reassure our customers that we’re here for you. If you’d like to know how we’re supporting our customers, or need support yourself, you can view our Covid-19 blog here.
As always thank you for your interest in Igloo Energy and your continued support, and stay safe.