London Power Quarterly Report: January - March 2022

Welcome to the eighth quarterly update on London Power. Global wholesale energy prices continued to remain high during this quarter exacerbated by Russia’s invasion of Ukraine in late February. This upward trend followed on from a volatile autumn and winter. Gas prices rose from already record levels and are expected to remain high for some months.

Levels of energy switching across the market remains low, as London Power, along with other energy suppliers, continues to give the same advice to not switch from price capped variable tariffs to higher priced fixed price tariff.

As customer acquisition has remained flat across the market for two quarters and is expected to remain flat for the foreseeable future, we will pause these quarterly updates until the market returns to a more normal footing and customer switching resumes.

In February, the energy regulator, Ofgem, announced the new price cap (to come into effect in April) with a 54 per cent increase (£693) to £1,978 (up from £1,285) for those in London who pay by direct debit. For pre-payment meter (PPM) customers within London, the cap increased by £706 from £1,317 to £2,023.

Our best advice to households remains the same: do not switch energy suppliers while energy prices remain higher than the price cap. With energy prices expected to rise again later this year, we continue to signpost consumers to energy saving advice on london.gov.uk. If you are on a low income and struggling to meet your energy costs, we recommend getting in touch with the Mayor’s Warmer Homes Advice Service.

In response to the cost-of-living crisis stemming from record inflation levels as well as increases in council tax and National Insurance, the Mayor launched a Cost of Living Hub for Londoners, with information, support and advice for those facing financial hardship.