Understanding Ofgem price cap

MWT

garrehsponges said:

What the heck.. that's confusing AF! So for my little brain to understand... basically it's "officially" 2900 average usage, but price can stay as high as 3100 usage legally? If so, what was even the point in downgrading the usage figures if they don't have any direct correlation on price?

Having the usage figure at 3100 doesn't directly affect the price, it is more about the distribution of costs between the standing charge and the unit price within the limits of the cap.

We also have to remember that the revised 2900 number is a median point, not the mean which remains over 3100.

The argument is about cost recovery on the part of the suppliers, but as long as the mean remains above the 3100 figure they really don't have much to complain about as they have ample opportunity to recover costs on the margin between the old median (3100) and the current mean and certainly don't need it reduced to the new median (2900).

PeterGr

The tables and model published by OFGEM use a single rate electricity consumption of 3100 kWh.  This is the value to use to get a unit rate in p/kWh.  Bur in the publications to illustrate the effect of the new Cap the medium TDCV's are used which is now 2900 kWh for electricity and gives the combined cost of £1277 per annum. (averaged over all regions & including VAT)

[Deleted User]

What a tangled web...

Capt_easychord

Blimey... I'm just trying to work out if the Sainsburys tariff I signed up to 10 days ago is actually better (or at least no worse!) than the cap before my 14 days cooling off period ends. I'm pretty sure it is, but it seems virtually impossible to check!

Capt_easychord

I don't know if this is a bit cheeky but if anyone could give me some indication of whether this tariff is OK, or if I'd be better to go onto the SVR price cap, just to put my mind at rest, I'd be really grateful! Our usage is about 13500 gas and 3300 electricity.

 

Electricity

1 Year Fix and Reward v19 Direct Debit version

Starting on 07/10/2021

Fixed term ends 07/10/2022

19.82p/kWh17.26p/day

(All rates inc. VAT)

Gas

1 Year Fix and Reward v19 Direct Debit version

Starting on 07/10/2021

Fixed term ends 07/10/2022

3.96p/kWh19.27p/day

(All rates inc. VAT)

bristolleedsfan

Capt_easychord said:

I don't know if this is a bit cheeky but if anyone could give me some indication of whether this tariff is OK, or if I'd be better to go onto the SVR price cap, just to put my mind at rest, I'd be really grateful! Our usage is about 13500 gas and 3300 electricity.

 

Electricity

1 Year Fix and Reward v19 Direct Debit version

Starting on 07/10/2021

Fixed term ends 07/10/2022

19.82p/kWh17.26p/day

(All rates inc. VAT)

Gas

1 Year Fix and Reward v19 Direct Debit version

Starting on 07/10/2021

Fixed term ends 07/10/2022

3.96p/kWh19.27p/day

(All rates inc. VAT)

Fantastic rates all cheaper than new energy cap

QrizB

bristolleedsfan said:

Capt_easychord said:

I don't know if this is a bit cheeky but if anyone could give me some indication of whether this tariff is OK, or if I'd be better to go onto the SVR price cap, just to put my mind at rest, I'd be really grateful! Our usage is about 13500 gas and 3300 electricity.

 

Electricity

1 Year Fix and Reward v19 Direct Debit version

Starting on 07/10/2021

Fixed term ends 07/10/2022

19.82p/kWh17.26p/day

(All rates inc. VAT)

Gas

1 Year Fix and Reward v19 Direct Debit version

Starting on 07/10/2021

Fixed term ends 07/10/2022

3.96p/kWh19.27p/day

(All rates inc. VAT)

Fantastic rates all cheaper than new energy cap

Agreed, that's a bit cheaper than the October cap, and a good bet for a 1-year fix.

Capt_easychord

Thanks so much QrizB and Bristolleedsfan, I really appreciate your help there!
It's so complicated! 

baldycoot_2

When I come of my fixed Eon dual fuel tarriff. I have been checking tarrif's I may be going onto. The Electric is going fro
m 17.85 a day to 48.56 a day 172% increase. The Gas is going from 16.27 a day to 48.22 a day 196% increase. Is this allowed under the ofgem price cap.

Ultrasonic

baldycoot_2 said:

When I come of my fixed Eon dual fuel tarriff. I have been checking tarrif's I may be going onto. The Electric is going fro
m 17.85 a day to 48.56 a day 172% increase. The Gas is going from 16.27 a day to 48.22 a day 196% increase. Is this allowed under the ofgem price cap.

Those numbers don't look right. Possibly one includes the standing charge and the other does not?