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The hidden £140 price bump

KimYeovil
KimYeovil Posts: 6,156 Forumite
1,000 Posts Combo Breaker
Just thought I would cheer everyone up by reminding them of the extra hidden bump in headline quotes. They used to quote the average price for 20,500 kWh of gas. They now only count 16,500 kWh. So, at 3.5p per unit, that means the headline quote is a misleading £140 cheaper than it would have been last year.

:j

Comments

  • Premier_2
    Premier_2 Posts: 15,141 Forumite
    10,000 Posts Combo Breaker
    KimYeovil wrote: »
    Just thought I would cheer everyone up by reminding them of the extra hidden bump in headline quotes. They used to quote the average price for 20,500 kWh of gas. They now only count 16,500 kWh. So, at 3.5p per unit, that means the headline quote is a misleading £140 cheaper than it would have been last year.

    :j

    That would indeed be the case if you were comparing the average cost reported in a report from last year to an average price reported today.

    However, if a report today compares two average prices (based on today compared to last year), they should both be based on the 16,500kWh figure :)
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
  • KimYeovil
    KimYeovil Posts: 6,156 Forumite
    1,000 Posts Combo Breaker
    Premier wrote: »
    That would indeed be the case if you were comparing the average cost reported in a report from last year to an average price reported today.

    However, if a report today compares two average prices (based on today compared to last year), they should both be based on the 16,500kWh figure :)

    Eh? Of course that is what I am saying. If people think "hmm, cheapest tariff cost £900 last year. It only costs £950 just now. That doesn't seem as bad as everyone is saying". But that £950 is now only for 16,500 units, not 20,500 units.
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    edited 10 June 2011 at 3:14PM
    KimYeovil wrote: »
    Eh? Of course that is what I am saying. If people think "hmm, cheapest tariff cost £900 last year. It only costs £950 just now. That doesn't seem as bad as everyone is saying". But that £950 is now only for 16,500 units, not 20,500 units.
    As an insider can you throw any light on where tehy get the average electricity from at 3300, ours is c7500 for a family of four in a medium 4 bed with gas heating/water?

    I would have thought we were closer to average than that.
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • Premier_2
    Premier_2 Posts: 15,141 Forumite
    10,000 Posts Combo Breaker
    As an insider can you throw any light on where tehy get the average electricity from at 3300, ours is c7500 for a family of four in a medium 4 bed with gas heating/water?

    I would have thought we were closer to average than that.

    The figures are set for trhe industry by Ofgem.

    This explains how Ofgem arrived at the figures:
    http://www.ofgem.gov.uk/Media/FactSheets/Documents1/domestic%20energy%20consump%20fig%20FS.pdf
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    Premier wrote: »
    The figures are set for trhe industry by Ofgem.

    This explains how Ofgem arrived at the figures:
    http://www.ofgem.gov.uk/Media/FactSheets/Documents1/domestic%20energy%20consump%20fig%20FS.pdf

    Thanks I will have a look at that.

    I am sure they understand the market and are ensuring that consumers interests are paramount;)
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
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