Simple question? what is ofgems price cap per unit.

wittynamegoeshere

I'm very happy to stand corrected!

RosaBernicia

jimjames 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.

As a challenge I thought it might be interesting to do a calculator so you can see at a glance what the rates are rather than just seeing the annual totals.

https://r6fd51uoetngaqh-db202106081427.adb.uk-london-1.oraclecloudapps.com/ords/r/apex_live/energy-price-calculator

Any feedback would be welcome. Next stage is to allow calculation of your own usage by entering numbers but first was to show the Ofgem price cap values.

Thanks for this - I had the same question and it's a much better version than the Excel sheet I've been swearing at! 

dejjones

I had payed little attention to trying to understand the "energy cap" until I was thrown in at the deep end when my supplier "Avro" went bust. My new company "Octopus" told me my new tariff  would be £10 less than the cap.

So, I thought, I now need to understand what this means.
Surely it must be a simple matter of finding out what the caps are, as unit price prices, and put the figures into my excel spreadsheet.

I visited most of the energy company's websites but could find no sign of the cap unit prices, only the meaningless "Benchmark Annual Consumption Levels" were used everywhere.

After a significant amount of googling I eventually came across Ofgem's  publication, from which I was able extract the necessary figures for my region, and so I had a figure in my spreadsheet to check against Octopus's tariff.

Today Octopus sent me my new tariffs, which are Economy 7 tariffs, even though I didn't have Eco 7 with Avro.
So back to the googling to recalculate.
My googling this time brought me here, which has been much more helpful than either Ofgem or any of the Energy companies.

Someone earlier in this thread said the calculation for Economy 7 is based on a 58/42% split, I have not been able to confirm that anywhere.

I, fortunately, have had the time to sort out the details, but there must be literally millions of people in my situation who haven't.
and will have no idea whether their new bills comply with legislation.

MWT

dejjones said:

Someone earlier in this thread said the calculation for Economy 7 is based on a 58/42% split, I have not been able to confirm that anywhere.

https://www.ofgem.gov.uk/system/files/docs/2020/01/tdcvs_2020_decision_letter_0.pdf

Keep in mind when looking at those figures that although the TDVC consumption rates were revised for use by energy suppliers giving example billing figures, Ofgem elected to retain the original figures for the cap calculations, hence the cap still uses 3,100 kWh for typical single rate electricity, where the suppliers are obliged to give examples using 2,900 kWh.

Dave_save

Can anybody clarify the following?

I'm in the N Wales/Mersey region, and the max benchmark Ofgem cap for D/D electricity single meter (£731.10) plus gas (£555.45), totals out above the published cap levels at £1286.55. I understood that if the correct criteria was applied, for defined average usage, the cap was set at £1277.

This also applies to at least 2 other regions, S Wales and S Western where the cap totals for average usage exceeds the £1277.

I've asked Ofgem to explain and I got a reply which missed the point of my query, and now silence!

QrizB

Dave_save said:

Can anybody clarify the following?

Ofgem's headline cap is misleading.

• There is in practice a different cap for every region.
• In addition, Ofgem's published table is based on 3100kWh/yr of electricity but the headline cap is based on 2900kWh/yr.
• Finally, the published table doesn't include VAT but the £1277 figure does.

MallorcaMike

For those seeking the Eon Next capped variable rates, I've uncovered this: 

https://assets.ctfassets.net/gmgnreshss7h/6WrFfQKiuMYJ0YGRCpml5j/9e500c91845c5e72e94219d6bed47141/Next_Flex_Credit.pdf