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Massaging the facts about recent increases
Hello,
The media has recently been full of the fact that dual fuel bill are going to rise by a figure something short of 20% for the two.
Take look at my increase, as a consumer of gas and electricity on a pretty modest scale.
I am on the e-on SaveOnline 5 tariff.
Electricity: Current cost of first unit rate is 20.15 pence per kWh inc. VAT. The new rate is to be 24.707 pence per kWh. This is a hike of 22.615%.
After that the cost of the next unit rate is now 9.807 pence per kWh and the new rate is 10.784 pence per kWh. This is a rise of 9.962%.
The threshold of the break from first unit rate to next unit rate is 900kWh per annum.
Gas: Current cost of first unit rate is 5.304 pence per kWh inc. VAT. The new rate is to be 7.75 pence per kWh. This amounts to a rise in the order of 46.2%.
After that the cost of the next unit rate is now 2.94 pence per kWh and the new rate is to be 3.372 pence per kWh. This is a rise of 14.69%.
The threshold of the break from first unit rate to next unit rate is 2680kWh per annum.
Just in case (and it is possible) I wasn't listening in the maths class at school, just how much of each power source do you have to use for all those lofty increases to resolve into an overall increase of less than 20% across the board?
Shed loads more than I do, I think.
We are on the threshold of both being pensioners and my wife and I have always been frugal with power and as far as I can comprehend, because we are likely to be consuming less units at the cheaper end of the range than those we shall have to be using at the high end before we become entitled to the lesser rate will mean that the true increase to us is in excess of the 18-19% that everyone is up in arms about.
Please, someone - tell me I am wrong about this.
The media has recently been full of the fact that dual fuel bill are going to rise by a figure something short of 20% for the two.
Take look at my increase, as a consumer of gas and electricity on a pretty modest scale.
I am on the e-on SaveOnline 5 tariff.
Electricity: Current cost of first unit rate is 20.15 pence per kWh inc. VAT. The new rate is to be 24.707 pence per kWh. This is a hike of 22.615%.
After that the cost of the next unit rate is now 9.807 pence per kWh and the new rate is 10.784 pence per kWh. This is a rise of 9.962%.
The threshold of the break from first unit rate to next unit rate is 900kWh per annum.
Gas: Current cost of first unit rate is 5.304 pence per kWh inc. VAT. The new rate is to be 7.75 pence per kWh. This amounts to a rise in the order of 46.2%.
After that the cost of the next unit rate is now 2.94 pence per kWh and the new rate is to be 3.372 pence per kWh. This is a rise of 14.69%.
The threshold of the break from first unit rate to next unit rate is 2680kWh per annum.
Just in case (and it is possible) I wasn't listening in the maths class at school, just how much of each power source do you have to use for all those lofty increases to resolve into an overall increase of less than 20% across the board?
Shed loads more than I do, I think.
We are on the threshold of both being pensioners and my wife and I have always been frugal with power and as far as I can comprehend, because we are likely to be consuming less units at the cheaper end of the range than those we shall have to be using at the high end before we become entitled to the lesser rate will mean that the true increase to us is in excess of the 18-19% that everyone is up in arms about.
Please, someone - tell me I am wrong about this.
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Comments
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They normally state that the declared percentage rise is calculated on the UK average annual consumption of 16,500kW gas and 3,300kWh electricity(used to be 20,500kWh pa gas)
However it never seems that simple as they can change the various discounts, alter the tier 1 allocation, include an annual payment after 12 months etc etc.0 -
energy prices are the most unclear prices, and any other product would br forced to make it clearerPromo codes are never always cheaper..... isnt that right EuropCar?0
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The rules around price increase percentages are set by OFGEM and are based on average comsumption, they are also across the suppliers complete customer base (CR, PPM, pay on bill, DD etc). So as an example if a supplier has a larger than average number of PPM customers, increase their price by only a small amount it will 'pull down' the published average.IT Consultant in the utilities industry specialising in the retail electricity market.
4 Credit Card and 1 Loan PPI claims settled for £26k, 1 rejected (Opus).0 -
Please, someone - tell me I am wrong about this.
No you are not wrong.
It is a disgrace that regulation has created a regime that allows that and a disgrace that consumer representation such as Consumer Focus is so silent.
It can't be right that (for the country) energy economy and efficiency is penalised. Make some mischief with your MP.0 -
Sorry to disagree with the previous commenter, but with the figures that you've posted I make that an increase of 19.8% for gas and 13.4% for electric on average annual consumption, which is actually under the 20% by a decent distance.
Yes, if you're using a lot less than the stated 'average' then yours will have gone up a lot more, but as I've said before, I don't see any way that the energy company could coverall potential usages and tariffs that people may be on in a small press release. Even if they did, the papers would ignore everything except either what they decided was the average, or the maximum possible increase anyway. It sucks a bit for very low users, and is great for very high users, but most people come somewhere at least vaguely close to the average...I am an employee of British Gas, however the views expressed on this post are mine and do not necessarily reflect the views of Centrica, its subsidiaries or affiliated companies.0 -
Sorry to disagree with the previous commenter, but with the figures that you've posted I make that an increase of 19.8% for gas and 13.4% for electric on average annual consumption, which is actually under the 20% by a decent distance.
Yes, if you're using a lot less than the stated 'average' then yours will have gone up a lot more, but as I've said before, I don't see any way that the energy company could coverall potential usages and tariffs that people may be on in a small press release. Even if they did, the papers would ignore everything except either what they decided was the average, or the maximum possible increase anyway. It sucks a bit for very low users, and is great for very high users, but most people come somewhere at least vaguely close to the average...
But the problem is one wholly of the energy companies' making - they simply have far too many tariffs! Energy companies should be forced to show 3 different increase %tages - one for low users, one for average users and one for high users. The system we have at the moment encourages them to optimise their prices for 'average' users. And very few households in the UK will be exactly or even close to being 'average users' - it's just a figure that sits in the middle of the extremes of consumption.0 -
Sorry to disagree with the previous commenter, but with the figures that you've posted I make that an increase of 19.8% for gas and 13.4% for electric on average annual consumption, which is actually under the 20% by a decent distance.
Yes, if you're using a lot less than the stated 'average' then yours will have gone up a lot more, but as I've said before, I don't see any way that the energy company could coverall potential usages and tariffs that people may be on in a small press release. Even if they did, the papers would ignore everything except either what they decided was the average, or the maximum possible increase anyway. It sucks a bit for very low users, and is great for very high users, but most people come somewhere at least vaguely close to the average...
Don't know what figures you used for the OP's usage to get those numbers as he didn't provide any.
According to my calculations, the OP would get hit by a 20% rise if the annual electricity usage was 1,380kWh and annual gas usage of 26,242kWh. Use more than that and the percentage increase goes down, use less and it goes up.
So electricity is considerably below "average" usage, but gas above it.
Any discounts taken are not included in the calculation.I’m a Forum Ambassador and I support the Forum Team on the In My Home MoneySaving, Energy and Techie Stuff boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
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OP could just switch off saveol5 to a competitor or Save Online 9 of course.0
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Was the reason for the sudden 'Average Use' drop for Gas from 20,500 kWh to 16,500 kWh ever explained?0
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well im way under average - i only used 8200 for gas last year..... i think its a case of people turning down or even off heating alot more when not needed = because of teh cost, or have well insulated houses (like mine)0
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