SSE 8.2% Increase - Actual Increase is...

cgzz

As far as I can determine the actual increase in each of the 14 distribution areas for standard electricity tariff is:-

Eastern - 9.9%
East Midlands - 9.9%
London - 9.7%
Merseyside - 11.5%
Midlands - 9.7%
Northern - 6.8%
North West - 8.5%
North Scotland - 11.5%
South Scotland - 7%
South East - 11.4%
Southern - 8.5%
South Wales - 10.9%
South Western - 10.9%
Yorkshire - 9.9%

Daily standing charge hasn't increased in any area. From the above any ideas how SSE manages to get 8.2% as an average?

macman

It won't just be the total of those regional percentages divided by 14. It will probably be calculated based on the number of customers in each region. So, for example, London will carry a much heavier weighting than North Scotland.

NittyGritty

cgzz wrote: »

As far as I can determine the actual increase in each of the 14 distribution areas for standard electricity tariff is:-

Eastern - 9.9%
East Midlands - 9.9%
London - 9.7%
Merseyside - 11.5%
Midlands - 9.7%
Northern - 6.8%
North West - 8.5%
North Scotland - 11.5%
South Scotland - 7%
South East - 11.4%
Southern - 8.5%
South Wales - 10.9%
South Western - 10.9%
Yorkshire - 9.9%

Daily standing charge hasn't increased in any area. From the above any ideas how SSE manages to get 8.2% as an average?

I think those figures will be Much higher than that when people get the real unit price increases coming through the post in the coming weeks

cgzz

macman wrote: »

It won't just be the total of those regional percentages divided by 14. . It will probably be calculated based on the number of customers in each region. So, for example, London will carry a much heavier weighting than North Scotland.

Don't think so - out of 14 regions only 2 are below 8.2% and London isn't one of them.

macman

The mean of those figures is 9.72%. No doubt they use somei ngenious smoke and mirrors to get that percentage down to 8.2% for 'official' figures.
Also are not the 'official' figures based on Standard tariff, so will only apply to around 50% of their customer base anyway?

MillicentBystander

I've long had a suspicion that these average increase figures announced y energy suppliers are in some way massaged but as I'm no mathematician I couldn't back up my suspicions...

Bark01

The figures in the OP are only the unit rate increases, as the standing charge has not changed customers will see less of an impact on their actual bills. As stated in the SSE press release the 8.2 % is based on a ‘standard dual fuel customer (averaged across great Britain) using the typical annual household energy consumption levels adopted by Ofgem in January 2011 – 16500 kwhs of gas and 3300 kwhs of electricity’

There is no regional customer weighting and SSE have also used current typical consumption, a new typical come into play on Jan 1st 2014 that will reduce consumption so would reduce the 8.2% figure. However SSE have by far the most customers in the Southern region which has seen a 8.94% increase, so regional customer number weighting would probably increase the %.

I make the actual figures 8.28% for DD 7.79% for CC and 7.77% for PPM, so they have picked the highest average.

I don’t see anything wrong with what they have announced. It provides a good average for customers on standard. I've not looked into the changes for other products but presumably this would be higher.

Lets not pick fights where there aren't any, the SSE press release is one of the most comprehensive PR’s I've ever seen, its 10 pages long! Most suppliers only offer 2/3 pages of explanation.

macman

If all suppliers use the same calculation method, at least a fair comparison can be made.

MillicentBystander

Bark01 wrote: »

The figures in the OP are only the unit rate increases, as the standing charge has not changed customers will see less of an impact on their actual bills. As stated in the SSE press release the 8.2 % is based on a ‘standard dual fuel customer (averaged across great Britain) using the typical annual household energy consumption levels adopted by Ofgem in January 2011 – 16500 kwhs of gas and 3300 kwhs of electricity’

There is no regional customer weighting and SSE have also used current typical consumption, a new typical come into play on Jan 1st 2014 that will reduce consumption so would reduce the 8.2% figure. However SSE have by far the most customers in the Southern region which has seen a 8.94% increase, so regional customer number weighting would probably increase the %.

I make the actual figures 8.28% for DD 7.79% for CC and 7.77% for PPM, so they have picked the highest average.

I don’t see anything wrong with what they have announced. It provides a good average for customers on standard. I've not looked into the changes for other products but presumably this would be higher.

Lets not pick fights where there aren't any, the SSE press release is one of the most comprehensive PR’s I've ever seen, its 10 pages long! Most suppliers only offer 2/3 pages of explanation.

I'm assuming this is the 13,500 Gas, 3,200 Electric proposed as medium usage by Ofgem?

Bark01

Yes, but it bares no relevance to this as it has not been used. Let's not dilute the discussion.

Bluebirdman_of_Alcathays

Bark is, of course correct. Only part of the bill, the unit rate has increased.

The other section, SC, has not.

Some very poor mathematics in this thread!