Price Cap

Matt17

Does the price cap apply to all variable rate tariffs with all energy suppliers?

Also if a supplier goes bust and you are SOLR'd to a new supplier is price cap the most expensive tariff they can put you on? 

jimjames

I'm not sure if it applies to all tariffs but it has to apply to the default tariff - the standard variable one. The price cap is the most expensive they can move you to but you could choose to go to a higher fixed tariff.

https://www.which.co.uk/consumer-rights/advice/what-should-i-do-if-my-energy-supplier-goes-bust-aNNsT0m4NIzL

jokskot

I'm trying to find out the unit costs associated with capped energy from 1 October onwards. The maximum charges to " atypical customer" are readily available, but what are the costs per kWh and per day for both electricity and gas.

I would like to compare what I have been quoted for a fixed period (12 and 24 months) with the capped cost from October.

stever40

Agreed, I would like to know how much more I will pay.
Suppose I use 15000kWh Gas and 4000 elec. Do they charge tha cap amount for the average use and then apply full rate to the extra ? Or do they pro-rate it ?
What about the daily charge ? Is that included in the cap ?

tripled

Cap on both standing charge and price per unit of energy, irrespective of usage level. The average use is just an example.

Yes the most price cap is the most expensive tariff they can put you on, which is why the news is suggesting suppliers will be reluctant to take on too many new customers and may start refusing. That's not to say they can't offer a more expensive tariff (e.g. a fixed rate), but you would have to choose to go on to it.

stever40

I've only seen a 'total' amount for the average user but no details of unit or daily charges.
As a higher user, wouldn't I want a supplier with lowest daily charge if the unit price is capped ?

PeterGr

All the details are on the OFGEM website.  There is some variation according to which region you are in, and how you pay.  The OFGEM tables also exclude VAT.
Gas has a SC of about 26 p per day and Electricity 25 p/day.
Unit rates are about 4p/kWh for Gas and 21p/kWh for Electricity.

Increase is about 50% more than fixed deals taken out in 2020.

Good luck

MWT

stever40 said:

I've only seen a 'total' amount for the average user but no details of unit or daily charges.
As a higher user, wouldn't I want a supplier with lowest daily charge if the unit price is capped ?

No, and that is because the unit price is not directly capped.

The standing charge and the total bill (including SC) for 3100 kWh are capped.

So that means that the more the supplier takes from that capped total bill through the SC, the lower they have to set the price per kWh.

This is why you cannot find a list of the capped unit charges as the maximum level for them is determined by the SC that the supplier chooses to set.

GunJack

It's got to be said that the way they implement it is totally bonkers.... surely 1 SC for gas and 1 for leccy per region, and similarly 1 ppkwh gas and 1 for leccy per region?? none of this faffing with average consumption divided by Pi times the square root of 42 lol 

jimjames

stever40 said:

I've only seen a 'total' amount for the average user but no details of unit or daily charges.
As a higher user, wouldn't I want a supplier with lowest daily charge if the unit price is capped ?

You can see the details of the unit and standing charges here, taken from Ofgem and use the calculator to estimate your own costs

http://energy.jj99.co.uk/

MWT

GunJack said:

It's got to be said that the way they implement it is totally bonkers.... surely 1 SC for gas and 1 for leccy per region, and similarly 1 ppkwh gas and 1 for leccy per region??

The cap is regionally adjusted for both the total bill and the SC, for each of gas and electric then the unit cap is just a product of setting the SC and applying that figure to the total bill cap.

So there is a different cap for gas and electric for each region and for the different payment methods.