00:00OK, so we've got the conflict in the Middle East,
00:03and this is what's happened to wholesale gas prices.
00:05The reason I'm showing you gas prices,
00:07it's the biggest factor that feeds into electricity prices as well.
00:10So this is about energy prices in their totality.
00:13This is probably the biggest percentage rise we've ever seen in two days.
00:17Scary, isn't it?
00:19But if I scroll this graph back five years
00:22and show it you in the context of Ukraine...
00:26Yeah.
00:27Now, look, I'm not saying it won't get worse,
00:29and I'm not saying it won't be sustained,
00:31but I think there is just a little bit of putting it in perspective
00:33that is needed at the moment.
00:35We are not currently in the Ukraine-type spike situation.
00:41So, but it's gone up.
00:43What does that mean?
00:44Well, it depends which type of tariff you are on.
00:46So let me run through the differences.
00:48If you are already on a fixed tariff, well, it is fixed.
00:52And normally I'd say once it's fixed, it never moves,
00:55but actually something perverse and good,
00:57an unprecedented is coming on the 1st of April,
01:00which I talked about last week.
01:01If you are on an existing fixed rate on the 1st of April,
01:04policy changes, the underlying policy costs of bills are being moved,
01:08some onto general taxation, some are being cut,
01:10and that means the unit rate of electricity
01:12and the unit rate of gas,
01:14even on fixed tariffs,
01:16will be reduced on the 1st of April.
01:17And that is locked in.
01:18It means an unprecedented 7% to 9% typical fall
01:21on existing fixes on the 1st of April.
01:25You understand what I'm saying?
01:25Not new fixes, existing ones.
01:27I know some people got confused about that last week
01:28when we did a full energy show.
Comments