Simple question? what is ofgems price cap per unit.

Chrysalis

There is a annual price cap published which is near useless as its not a hard limit its based on a average figure, but most people dont know where they stand compared to average use.

So what is the actual price cap per unit?

All providers are offering me below cap on variable or above cap on fixed which at first glance makes variable a no brainer, but it may be that my usage is higher than ofgem's quoted usage so wouldnt be covered, hence I need to know the unit rates which for some reason dont seem to be published.

rjmachin

Ofgem published the prices on their website.

The price depends on your region and the payment method.

https://www.ofgem.gov.uk/sites/default/files/2021-08/Default tariff cap level - 1 October 2021 - 31 March 2022.pdf

https://www.ofgem.gov.uk/publications/default-tariff-cap-level-1-october-2021-31-march-2022

As an example, the Gas price in the midlands via other payment (Direct Debit) is capped at £553.32, which for the standard use of 12,000 kWh is 4.611p per kWh

QrizB

See this thread:

https://forums.moneysavingexpert.com/discussion/6298022/energy-price-cap-explained-please

QrizB said:

Details of the cap are published on Ofgem's website. From the notes to the press release:

The price cap is a cap on a unit of gas and electricity, with standing charges taken into account. It is not a cap on customers’ overall energy bills, which will still rise or fall in line with their energy consumption. From 1 October the equivalent per unit level of the price cap to the nearest pence for a typical customer paying by direct debit will be 21p per kWh for electricity customers and 4p per kWh for gas customers.

Note "to the nearest pence"; prices a little over 21p/kWh and a little over 4p/kWh are alowed. Also the Standing Charge is capped to around 25p/day. There is more info for consumers here.

QrizB

PS In practice most of the major suppliers' standard variable tariffs are at the price cap. Eg. E.ON Next in my area is offering electricity at 20.68p/kWh and 24.11p/day, gas at 4.17p/kWh and 26.12 p/day.

Chrysalis

rjmachin said:

Ofgem published the prices on their website.

The price depends on your region and the payment method.

https://www.ofgem.gov.uk/sites/default/files/2021-08/Default tariff cap level - 1 October 2021 - 31 March 2022.pdf

https://www.ofgem.gov.uk/publications/default-tariff-cap-level-1-october-2021-31-march-2022

As an example, the Gas price in the midlands via other payment (Direct Debit) is capped at £553.32, which for the standard use of 12,000 kWh is 4.611p per kWh

Those are not TCR prices.

Their website states they calculate a TCR, then translate it to annual cost for publication, so they are withholding the TCR information.

However I "did" find their TCR for April 2021, when back then they were not protecting the industry and published it, I then added 12% to that figure and posted it on reddit.

The advice I gave everyone was to use Octopus variable tariff instead of fixed, as Octopus dont have much wiggle room to increase their  variable much higher, its not much below the cap which is in place by law until April 2022.

About 6 hours after I made the post Octopus has now removed their variable tariff from switching options, which confirms its going to lose them money and be cheaper than fixed.

The TCR I calculated for Oct 2021 to April 2022, is just above the current Octopus variable rates, and indeed for most of the suppliers.  A 12 month fixed deal above 20% of the cap is probably a bad deal.

The current Octopus fixed deal is about 25% more expensive on electric and about 60% more expensive on gas.  But now the only option as they pulled the variable for those who didnt switch in time.

The news sites including MSE were not on the ball for this.

Chrysalis

Also i have sent ofgem a complaint asking why they removed the requirement for suppliers to clearly publish the TCR rate and why its in none of their October 2021 documents, still awaiting a reply.

Chrysalis

QrizB said:

See this thread:

https://forums.moneysavingexpert.com/discussion/6298022/energy-price-cap-explained-please

QrizB said:

Details of the cap are published on Ofgem's website. From the notes to the press release:

The price cap is a cap on a unit of gas and electricity, with standing charges taken into account. It is not a cap on customers’ overall energy bills, which will still rise or fall in line with their energy consumption. From 1 October the equivalent per unit level of the price cap to the nearest pence for a typical customer paying by direct debit will be 21p per kWh for electricity customers and 4p per kWh for gas customers.

Note "to the nearest pence"; prices a little over 21p/kWh and a little over 4p/kWh are alowed. Also the Standing Charge is capped to around 25p/day. There is more info for consumers here.

Thank you I will update the reddit post.  God knows how you found it, me and others spent hours looking for it, but it confirms what I said, the cap is way below the current Octopus fixed term deal.

QrizB

Whatever floats your boat, I guess.

bristolleedsfan

Chrysalis said:

rjmachin said:

Ofgem published the prices on their website.

The price depends on your region and the payment method.

https://www.ofgem.gov.uk/sites/default/files/2021-08/Default tariff cap level - 1 October 2021 - 31 March 2022.pdf

https://www.ofgem.gov.uk/publications/default-tariff-cap-level-1-october-2021-31-march-2022

As an example, the Gas price in the midlands via other payment (Direct Debit) is capped at £553.32, which for the standard use of 12,000 kWh is 4.611p per kWh

Those are not TCR prices.

Their website states they calculate a TCR, then translate it to annual cost for publication, so they are withholding the TCR information.

However I "did" find their TCR for April 2021, when back then they were not protecting the industry and published it, I then added 12% to that figure and posted it on reddit.

The advice I gave everyone was to use Octopus variable tariff instead of fixed, as Octopus dont have much wiggle room to increase their  variable much higher, its not much below the cap which is in place by law until April 2022.

About 6 hours after I made the post Octopus has now removed their variable tariff from switching options, which confirms its going to lose them money and be cheaper than fixed.

The TCR I calculated for Oct 2021 to April 2022, is just above the current Octopus variable rates, and indeed for most of the suppliers.  A 12 month fixed deal above 20% of the cap is probably a bad deal.

The current Octopus fixed deal is about 25% more expensive on electric and about 60% more expensive on gas.  But now the only option as they pulled the variable for those who didnt switch in time.

The news sites including MSE were not on the ball for this.

Octopus last week were advising people who contacted them to switch from variable to fixed in name of locking in for 2 years, I just asked  a question not related to flexible price increase, apparent the reason for the advice so Octopus get higher rate for kwh rate during winter, its fixed rate has £280 predicted price cap increase warmer months April  1 - 30 September 2022 already priced in, change to fixed now pay more during colder months with gas prices predicted to fall Summer2022

"We don't know exactly how much the energy increase is for each customer in October, but we are advising for customers to lock their prices in with a fixed tariff instead of variable which will effectively safeguard you from price increases for the next 12 or 24 Months"

danlightbulb

Chrysalis said:

QrizB said:

See this thread:

https://forums.moneysavingexpert.com/discussion/6298022/energy-price-cap-explained-please

QrizB said:

Details of the cap are published on Ofgem's website. From the notes to the press release:

The price cap is a cap on a unit of gas and electricity, with standing charges taken into account. It is not a cap on customers’ overall energy bills, which will still rise or fall in line with their energy consumption. From 1 October the equivalent per unit level of the price cap to the nearest pence for a typical customer paying by direct debit will be 21p per kWh for electricity customers and 4p per kWh for gas customers.

Note "to the nearest pence"; prices a little over 21p/kWh and a little over 4p/kWh are alowed. Also the Standing Charge is capped to around 25p/day. There is more info for consumers here.

Thank you I will update the reddit post.  God knows how you found it, me and others spent hours looking for it, but it confirms what I said, the cap is way below the current Octopus fixed term deal.

It is, but Octopus is far more expensive than many other providers. Its still possible to get gas around 4p /kWh. Why would anyone choose to switch to Octopus and pay 5.67p /kWh?

bristolleedsfan

danlightbulb said:

Chrysalis said:

QrizB said:

See this thread:

https://forums.moneysavingexpert.com/discussion/6298022/energy-price-cap-explained-please

QrizB said:

Details of the cap are published on Ofgem's website. From the notes to the press release:

The price cap is a cap on a unit of gas and electricity, with standing charges taken into account. It is not a cap on customers’ overall energy bills, which will still rise or fall in line with their energy consumption. From 1 October the equivalent per unit level of the price cap to the nearest pence for a typical customer paying by direct debit will be 21p per kWh for electricity customers and 4p per kWh for gas customers.

Note "to the nearest pence"; prices a little over 21p/kWh and a little over 4p/kWh are alowed. Also the Standing Charge is capped to around 25p/day. There is more info for consumers here.

Thank you I will update the reddit post.  God knows how you found it, me and others spent hours looking for it, but it confirms what I said, the cap is way below the current Octopus fixed term deal.

It is, but Octopus is far more expensive than many other providers. Its still possible to get gas around 4p /kWh. Why would anyone choose to switch to Octopus and pay 5.67p /kWh?

Many people do not do a comparison based on actual usage, dont look at kwh rates, even those who do many do not know what they mean in relation to energy cap, many people will have a shock if have a cold winter how much gas will cost

It has to be said though phone Octopus Energy get answered mostly very quickly and efficiently when customers of other suppliers have difficulty getting calls answered