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Wood Pellet Prices And Availability
The Energy Crisis
The global energy market has been affected firstly by BREXIT and the COVID 19 pandemic, but now with the added energy crisis and Ukranian crisis, supply chains are in disarray. Massive fluctuations in the cost of gas, oil and electricity per KwH have led to a UK wide announcement of heating bill price caps increasing by 54% in April.
The Global Supply Picture
Meanwhile, wood pellet supply chains are now also faced with more cost increases, as a direct result of the international conflict between Russia and Ukraine. 20% of all European wood pellets are supplied by Russia, Belarus or Ukraine, and removing those volumes from the broader market has had an immediate impact on cost even here in the UK.
UK Pellet Prices & Summer Prices
Pellet supply chains are under pressure to either increase their prices or not sell at all, and with wholesale prices already increasing by 20% in March, pellet costs are set to increase yet again as we move into the summer. Not be able to offer the usual summer discount this year, we forecast another price increase will take place as we May/June so should you have the capacity to store take advantage of our pricing now.
Energy Cost Comparison
Oil - Retail | Gas - Wholesale | Electricity - Wholesale | Bagged Pellet - WHE Retail | KD Firewood - WHE Retail
Nevertheless, data from energy comparison sites show biomass pellets are still better protected from price fluctuations in comparison to oil, gas, and wholesale electricity, meaning a more predictable, stable trend in the long-term costs of heating your home.
What We Can Promise To You
Despite the lack of summer prices, White Horse Energy is committed to being the cheapest wood pellet supplier. We're working tirelessly to ensure we can keep our prices as low as we can, but there's no quick fix. Going forward, we feel confident that we’ll have ongoing supply to keep your biomass boilers regularly topped up, but envisage that in the short-term prices will increase again
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