Energy price cap explained please

[Deleted User]

eur0 said:

I couldn't agree more. Continually quoting 'average households' is worthless. Most people just want to know how much they'll pay based on current usage. Just give the unit rates and standing charges then we can all work it out accurately for ourselves.

Of course it's worthless, isn't that the point?

Where are Bremner, Bird and Fortune when you need them...

What_time_is_it

Another thing that could be easily fixed is to not allow quoting prices without including VAT.
Really easy for Ofgem to insist that all prices quoted must include VAT. It's not like it's optional whether we choose to pay it or not!

eur0

jimjames said:

eur0 said:

MWT said:

eur0 said:

So what is the cap on the standing charge?

For electricity using a single rate and paying via Direct Debit, the annual cap on the standing charge is...

North West	£84.76
Northern	£91.98
Yorkshire	£93.25
Northern Scotland	£95.23
Southern	£83.82
Southern Scotland	£86.44
N Wales and Mersey	£81.69
London	£81.02
South East	£83.56
Eastern	£83.49
East Midlands	£82.63
Midlands	£87.23
Southern Western	£89.21
South Wales	£86.44

:

You will need to add VAT at 5% to those numbers.

Thanks. Do you have a link to this information?

https://www.ofgem.gov.uk/information-consumers/energy-advice-households/check-if-energy-price-cap-affects-you

You can calculate here http://energy.jj99.co.uk/

Perfect. Thanks!

MWT

Do take care when comparing Ofgem cap details and energy supplier quotes as Ofgem continue to use 3100kWh of electricity as the typical use when referring to the cap, while the suppliers are all obliged to use 2900kWh when providing quotes for a typical user.

Also Ofgem figures will be without VAT unless otherwise stated while supplier quotes will include VAT unless otherwise stated.

jimjames

What_time_is_it said:

Another thing that could be easily fixed is to not allow quoting prices without including VAT.
Really easy for Ofgem to insist that all prices quoted must include VAT. It's not like it's optional whether we choose to pay it or not!

Ofgem themselves use prices without VAT for the cap figures!

PeterGr

MWT said:

Do take care when comparing Ofgem cap details and energy supplier quotes as Ofgem continue to use 3100kWh of electricity as the typical use when referring to the cap, while the suppliers are all obliged to use 2900kWh when providing quotes for a typical user.

Also Ofgem figures will be without VAT unless otherwise stated while supplier quotes will include VAT unless otherwise stated.

3100KwH is used in the OFGEM model to determine the price caps, and in the calculation of implied unit rate p/kWh.  But when quoting the annual cost for an average user OFGEM then uses 2900kWh which is the latest TDCV for single rate electricity tariffs..  (VAT also to be added as stated)

doodling

Hi,

I think there is a lot of confusion amongst both consumers and industry about whether or not prices include VAT.

As an example, my supplier's (Together) variable prices are exactly the capped prices from the Ofgem documents (rounded down to the nearest 100th of a penny) but stated as VAT inclusive.  I think that means that they are 100/105 of what the cap would allow them to be.

Maybe I shouldn't have said this and someone at Together will read it and put their prices up...

molerat

DeletedUser said:

Funny how London is the lowest, and the whole of Northern Scotland is the highest...

You must be looking at a different table to the one OFGEM have published.  Yes Scotland is one of the higher cost areas for electricity, especially for multi register, which has historically been down to high transmission costs but is by no means the highest.

[Deleted User]

molerat said:

DeletedUser said:

Funny how London is the lowest, and the whole of Northern Scotland is the highest...

You must be looking at a different table to the one OFGEM have published.  Yes Scotland is one of the higher cost areas for electricity, especially for multi register, which has historically been down to high transmission costs but is by no means the highest.

I was looking at the table Euro posted in this thread at 12:30?

molerat

DeletedUser said:

molerat said:

DeletedUser said:

Funny how London is the lowest, and the whole of Northern Scotland is the highest...

You must be looking at a different table to the one OFGEM have published.  Yes Scotland is one of the higher cost areas for electricity, especially for multi register, which has historically been down to high transmission costs but is by no means the highest.

I was looking at the table Euro posted in this thread at 12:30?

Sorry, yes, standing charges are highest in N Scotland.  They always have been and that reflects the higher cost of transmitting electricity across Scotland spread across a lower number of customers.  But the overall cost of electricity is not the highest.