Understanding Ofgem price cap

garrehsponges

MWT said:

garrehsponges said:

Where is the PDF that shows actual capped unit rates?

There isn't one as the unit rates are not directly capped.

How come the calculator tool states actual capped rates then? I find that odd. These rates are currently below what British Gas charge on their Standard Variable tariff which is currently 4.055p and will go up to around 4.54p 1st October....

garrehsponges

Should of highlighted "Standard Credit Price Cap" as that's a fairer comparison.. but even that value is 4.0661 which clearly doesn't include the October price hike - British Gas standard rate will be above that on 1st October as they have signalled a 12% increase.

jimjames

garrehsponges said:

Consumerist said:

You can download an Ofgem pdf document with October energy tariff caps information <here>. I think you will need to add VAT to the amounts tabulated.

Thank you! It's strange to me how they work it out all based purely on prices. I'm guessing that means there isn't an actual cap on unit rates and standing charges. So energy companies can e.g. charge a high unit rate but very very low standing rate to offset it - and as long as it doesn't mean it's more than £X per year for (Y)kWh

jimjames calculator http://price-calc.321web.co.uk/ maybe inaccurate because it states capped unit rates, but in reality it doesn't quite work like that?

As far as I'm aware it does work like that. The cap shows averages but is based on a unit price and standing charges. The data came directly from Ofgem website but if you spot any typos please advise.

The numbers on the calculator don't include VAT as per Ofgem numbers but British Gas might do on theirs

MWT

Once you know the standing charge you can calculate the highest unit charge allowed under the cap, or you can assume that the sc will be the highest allowed by the cap and then calculate the unit price based on that level of standing charge.

What you can't do is say what the unit price cap is, without an assumption on the sc as the only cap is on the sc and the total cost of a defined number of units including the sc.

garrehsponges

The calculator already shows that British Gas are charging above the price cap for Direct Debit.

...and this is without the 12% increase that will come 1st October. Something isn't right here.

Thesaltmustflow

I thought none of us (for now) can be charged above the cap?

MWT

garrehsponges said:

The calculator already shows that British Gas are charging above the price cap for Direct Debit.

...and this is without the 12% increase that will come 1st October. Something isn't right here.

That BG tariff is already adjusted for the 1st October change.

There is a £0.30 error in there somewhere, probably rounding on the unit charge as the standing charge is almost exactly at the new cap.

garrehsponges

MWT said:

garrehsponges said:

The calculator already shows that British Gas are charging above the price cap for Direct Debit.

...and this is without the 12% increase that will come 1st October. Something isn't right here.

That BG tariff is already adjusted for the 1st October change.

There is a £0.30 error in there somewhere, probably rounding on the unit charge as the standing charge is almost exactly at the new cap.

That's cool if it is. Though British Gas news seems to imply that price isn't currently in effect. It's a bit weird to state a price before it's even technically been applied.

Rounding error? Even the standing charge is a couple of pence off.

Guess we'll find out in a few days.

MWT

Actually looking closer, that BG tariff is for the Eastern region and your calculator is set to South East...

That accounts for the small difference as Eastern is capped at £0.32 higher than South East

jimjames

If you put the numbers in from the Ofgem website into the calculator they should come out exactly to the penny