Methodology for Supply Market Indicators
Data
Publication date
Industry sector
Supply and Retail Market
The Supply Market Indicators are regular publications which examine the differences between wholesale costs and standard tariff bills for a typical customer. This allows us to produce an estimated net margin figure that an energy company may expect to make off a typical customer in a year.
This is a methodology report outlining the approach we have taken to produce the estimates. This report also discusses hedging which is an important part of how firms reduce risk against volatile wholesale prices.