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Energy bills to fall for 11 million, but don't be fooled - MSE News

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  • Gerry1
    Gerry1 Posts: 10,194 Forumite
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    ProDave wrote: »
    So what ARE the actual capped pence per unit of electricity and pence per unit of gas going to fall to?
    It's all explained here.
  • ProDave
    ProDave Posts: 3,785 Forumite
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    Gerry1 wrote: »
    It's all explained here.

    Sory if I am thick, I can't understand that.

    The best I can glean from that is the table "benchmark charges for the third charge restriction period"

    The table for "standard credit" where I am (north Scotland) says m(3100KWh) £662.51

    So does that mean if I used 3100KWh I would be charged £662.51? If so that would be 21.37p per KWh.

    As I say, the question remains, where is is explained in simple terms that the average consumer can understand, what is the cap on pence per KWh being applied?

    Why do they make it so complicated? Anyone would think they don't want us to understand how it works or what the actual cap on the energy price really is.
  • Gerry1
    Gerry1 Posts: 10,194 Forumite
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    edited 7 August 2019 at 5:08PM
    ProDave wrote: »
    So does that mean if I used 3100KWh I would be charged £662.51? If so that would be 21.37p per KWh.
    You need to deduct the standing charges of £105.64. It works out at just under 18p/kWh.
  • ProDave
    ProDave Posts: 3,785 Forumite
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    I thought the £nil KWh column was the standing charge.

    Like I say, why do they have to obscure everything and make it complicated. Why can't they just say electricity is being capped at 18p per KWh?
  • CakeCrusader
    CakeCrusader Posts: 1,118 Forumite
    I signed up for a fixed tariff last month. Mine won't go down, will it. :(
  • Gerry1
    Gerry1 Posts: 10,194 Forumite
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    ProDave wrote: »
    Like I say, why do they have to obscure everything and make it complicated. Why can't they just say electricity is being capped at 18p per KWh?
    You'd have to ask Ofgem. I imagine that many people would have no idea what 18p/kWh would mean in practice, whereas they're more likely to understand the standard variable rate being capped at £1,179 p.a. for typical dual fuel usage.
  • molerat
    molerat Posts: 32,920 Forumite
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    The "nil kWh" column is the maximum standing charge and the m (3100 kWh) column is the maximum total charge at 3100 kWh. There is no actual cap on unit price apart from not breaching that maximum cost. If an energy co has a customer base that is mainly high use, well above the 3100 level, they can reduce the standing charge element and increase the unit price thus getting a higher income without breaking the cap.
  • Hi molerat,
    they can reduce the standing charge element and increase the unit price thus getting a higher income without breaking the cap

    This is not correct. The cap levels for the standing charge and unit rates are independent of each other. This is because the cost must always be below a line joined between the 0 and 3100 points at any point along the x axis. Therefore the gradient of this line is the cap level for unit rate.

    To be honest this shows how silly it is for Ofgem to publish the figures this way - they are completely misleading. As ProDave says they should just publish the maximum standing charges and unit rates.
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