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Why the huge increase in electric cost?

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Comments

  • btr30
    btr30 Posts: 145 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Another reason for the increase will be the price cap. Previously suppliers could charge more to out of contract customers, and now this is capped it will result in increased charges for everyone to maintain suppliers’ income.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    1,000 Posts Third Anniversary Name Dropper
    edited 22 June 2021 at 10:19AM
    btr30 said:
    Another reason for the increase will be the price cap. Previously suppliers could charge more to out of contract customers, and now this is capped it will result in increased charges for everyone to maintain suppliers’ income.
    I think what you are saying is that the gap between a supplier's standard variable tariff and fixed tariffs has narrowed as a result of the Ofgem Price Cap. I would 100% agree; moreover, whenever the Cap is raised, suppliers know that they can raise their standard variable tariffs without Ofgem getting grumpy. I am afraid that most of Ofgem's consumer policies (which undoubtedly please Ministers) have consequences for bill payers. 
  • Haarlem
    Haarlem Posts: 345 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    There are of course several "Hidden" taxes on electricity to fund various projects.  Many of these such as a carbon tax do not apply to gas.
  • Boxman
    Boxman Posts: 199 Forumite
    Part of the Furniture 100 Posts
    Haarlem said:
    There are of course several "Hidden" taxes on electricity to fund various projects. 
    Is it possible to list details of these hidden charges and thus find out the "true" price of electricity?
  • Boxman said:
    Haarlem said:
    There are of course several "Hidden" taxes on electricity to fund various projects. 
    Is it possible to list details of these hidden charges and thus find out the "true" price of electricity?
    Try this link:

    https://www.ofgem.gov.uk/publications/infographic-bills-prices-and-profits
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