Standard Variable Tariff(SVT)

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  • MWTMWT Forumite
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    coupleuk said:
    As I thought, my Standing Charge for electric is up 96% and kWh is up 20% (on existing cap).

    As others have said, penalised for low usage.
    Some non-consumption costs are shared equally to access the network, not penalised, just a cost of being connected to the grid...

  • Gerry1Gerry1 Forumite
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    OFGEM should be held to account for allowing so many unregulated and inexperienced cowboys to enter the supply market in the first place.
    Although it could be argued that it was Ofgem's price cap that caused all those smaller companies to go bust !
  • edited 4 February at 7:37PM
    ihatetrumpihatetrump Forumite
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    edited 4 February at 7:37PM

    Although it could be argued that it was Ofgem's price cap that caused all those smaller companies to go bust !

    Maybe a contributing factor - but without the price cap, many would have just continued to use customer advance deposits to fund their ongoing businesses - some of which never made an operating profit - according to the last filed accounts for AVRO, they sold their energy at over 99% cost - hardly a business model built to last - once the cash ran out, they crumbled.

  • Gerry1Gerry1 Forumite
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    Although it could be argued that it was Ofgem's price cap that caused all those smaller companies to go bust !

    Maybe a contributing factor - but without the price cap, many would have just continued to use customer advance deposits to fund their ongoing businesses - some of which never made an operating profit - according to the last filed accounts for AVRO, they sold their energy at over 99% cost - hardly a business model built to last - once the cash ran out, they crumbled.
    When I become DG of Ofgem I'll insist on Variable DD or Pay On Receipt of Bill.  That'll stop 'em ! 
  • AllanrAllanr Forumite
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    QrizB said:
    QrizB said:
    In brief:
    New cap, new explainer. Most of it the same as the last one, TBH.
    Here is how it works:
    • Ofgem publish a set of tables here showing maximum annual costs for the standing chage (SC) and for typical users. There are different tables depending on how you pay and whether you have single-rate or multi-rate electricity (eg. E7).
    • The tables for a dual-fuel, single-rate customer are based on 3100 kWh/yr elec and 12000 kWh/yr gas
    • If you divide the SC cap by 365 you get the daily SC cap
    • If you subtract the annual SC cap from the 3100 kWh/yr electric cap, then divide by 3100, you get the kWh price
    • Ditto for the 12000 kWh gas cap.
    In practice there's a little bit of flexibility as suppliers can charge less SC and then bump their kWh rates up proportionately. The hard cap on electric kWh is the cap/3100, and for gas kWh the cap/12000.
    Ofgem's published figures don't include VAT so add 5% to whatever you calculate (assuming a residential property).
    Here is my own calculation of how the rates work out for each region, including VAT in the final steps:
    Apr22-Price-Cap-Inc-VAT
    If you've got Economy 7 or Economy 10 or some other multi-rate tariff, it's more complicated and I can't produce a simple table with rates. See this post for an explanation of why.
    If you don't trust my sums and would like confirmation of the above rates, here is EDF's standard variable rate card.
    Many thanks for the explanation and the tables, the unit costs and daily standing charges shown for my region lines up with the information recenetly supplied by my supplier.

    What I'm  unclear on is that if I add the costs for each element for a couple of the regions  in the table they don't line up with each other and they exceed the price cap of £2069 (i.e. £1971 +5% VAT).

    I assumed the price cap was standard across all regions with regions being able to tweak the standing charges and unit costs so long as the overall price cap of £1971 + vat isn't exceeded. Is my undersatnding of the same price cap all regions incorrect?

  • edited 13 March at 6:10PM
    moleratmolerat Forumite
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    edited 13 March at 6:10PM
    The price cap is not standard across all regions, it is the average price across all the regions.
  • edited 13 March at 6:37PM
    QrizBQrizB Forumite
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    edited 13 March at 6:37PM
    Allanr said:
    I assumed the price cap was standard across all regions with regions being able to tweak the standing charges and unit costs so long as the overall price cap of £1971 + vat isn't exceeded. Is my undersatnding of the same price cap all regions incorrect?
    As molerat says, the price cap varies by region. £1971 includes VAT and is an average.
    By my calculations, the price cap varies between £1937 (East Midlands) and £2015 (North Wales & Mersey).
    N. Hampshire, he/him. Octopus Go elec & Tracker gas / Voda BB / Virgin mobi. Ripple WT2 member.
    2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 2.5kw inverter. 27MWh generated, long-term average 2.6 Os.
    Ofgem caps explained - October 2021 and April 2022
  • AllanrAllanr Forumite
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    QrizB said:
    Allanr said:
    I assumed the price cap was standard across all regions with regions being able to tweak the standing charges and unit costs so long as the overall price cap of £1971 + vat isn't exceeded. Is my undersatnding of the same price cap all regions incorrect?
    As molerat says, the price cap varies by region. £1971 includes VAT and is an average.
    By my calculations, the price cap varies between £1937 (East Midlands) and £2015 (North Wales & Mersey).

    Thanks to both of you for clarifying the averaging of the price cap. this wasn't too obvious from looking at the OFGEM page on price cap..

    How for example did you arrive at £1937 for the East Midlands Region?
  • edited 13 March at 8:52PM
    QrizBQrizB Forumite
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    edited 13 March at 8:52PM
    Allanr said:
    How for example did you arrive at £1937 for the East Midlands Region?
    For East Midlands, Ofgem's ex-VAT cap values for a dual-fuel customer paying by DD are:
    • Gas: nil kWh £94.62, 12000kWh £926.91
    • Electricity: nil kWh £155.56, 3100kWh £971.23
    The headline cap rate is for a dual-fuel customer paying by DD and using 12000kWh of gas and 2900kWh of electricity per year.
    • Gas. This one is easy, the bill is £926.91 +5% VAT = £973.26
    • Electricity. This is more difficult, we have the standing charge of £155.56 plus the cost of electricity, which is [29/31 of (£971.23-£155.56)] ie. £763.05 = £918.61 +5% VAT = £964.54
    • Total £973.26 + £964.54 = £1937.80
    Hope you can follow that?
    N. Hampshire, he/him. Octopus Go elec & Tracker gas / Voda BB / Virgin mobi. Ripple WT2 member.
    2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 2.5kw inverter. 27MWh generated, long-term average 2.6 Os.
    Ofgem caps explained - October 2021 and April 2022
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