Chart of the week | Tariff limbo: how low can domestic supplier margins go?

Recently we have seen the emergence of several domestic fixed dual fuel tariffs near £800/year in April. This week’s Chart of the Week looks at whether these market-leading deals provide suppliers with sustainable supplier margins.

The chart takes the cheapest fixed tariff on the market over time and strips it of relevant third-party and annualised wholesale costs. A proxy for what remains to cover indirect costs and deliver a profit (if any) can be deduced.

It shows that the amount left overt from the cheapest fixed tariff is now £42 per dual fuel customer.

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