Standard Variable Tariff(SVT) 5 October 2021 at 2:31PM in Energy 41 replies 3.8K views

Allanr

QrizB said:

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?

I think I now have a better understanding of regional price cap.

My understanding is that the typical electricty usage for the price cap is now 2900 rather than 3100. Both EDF and Octopus have regional price cap tables (based on Ofgem information) and I have used their information to work out the cap for East Midlands as shown below.

.

Electicity
Daily Standing Charge	44.74p	Annual Standing Charge	163.30
Unit Cost/kWh	27.63p	Annual Cost	801.27	Based on typical usage of 2900/annum
Gas
Daily Standing Charge	27.22p	Annual Standing Charge	99.35
Unit Cost/kWh	7.28P	Annual Cost	873.60	Based on typical usage of 120000/annum
		Total	1937.52
Figures include 5% Vat

My total cost is close to your calculation and also Octopus which shows as £1937

MWT

Allanr said:

My understanding is that the typical electricty usage for the price cap is now 2900 rather than 3100.

If you look at the source material for the Ofgem cap calculations it will all refer to 3100kWh, it is the quotes by the suppliers that are required to use 2900kWh.

Allanr

MWT said:

Allanr said:

My understanding is that the typical electricty usage for the price cap is now 2900 rather than 3100.

If you look at the source material for the Ofgem cap calculations it will all refer to 3100kWh, it is the quotes by the suppliers that are required to use 2900kWh.

Thanks, do you have a link to the Ofgem source material, I have been searching but had no luck?

t0rt0ise

Allanr said:

MWT said:

Allanr said:

My understanding is that the typical electricty usage for the price cap is now 2900 rather than 3100.

If you look at the source material for the Ofgem cap calculations it will all refer to 3100kWh, it is the quotes by the suppliers that are required to use 2900kWh.

Thanks, do you have a link to the Ofgem source material, I have been searching but had no luck?

https://www.ofgem.gov.uk/sites/default/files/2022-02/Default%20tariff%20cap%20level%20-%201%20April%202022%20-%2030%20September%202022.pdf

Allanr

t0rt0ise said:

Allanr

Thanks, do you have a link to the Ofgem source material, I have been searching but had no luck?

https://www.ofgem.gov.uk/sites/default/files/2022-02/Default%20tariff%20cap%20level%20-%201%20April%202022%20-%2030%20September%202022.pdf

Thanks, its all very confusing for the lay person. This OFGEM letter https://www.ofgem.gov.uk/sites/default/files/docs/2020/01/tdcvs_2020_decision_letter_0.pdf mentions changing the Typical Domestic Consumption Values for electricity from 3,100 kWh down to 2900 kWh.

MWT

Allanr said:

t0rt0ise said:

Allanr

Thanks, do you have a link to the Ofgem source material, I have been searching but had no luck?

https://www.ofgem.gov.uk/sites/default/files/2022-02/Default%20tariff%20cap%20level%20-%201%20April%202022%20-%2030%20September%202022.pdf

Thanks, its all very confusing for the lay person. This OFGEM letter https://www.ofgem.gov.uk/sites/default/files/docs/2020/01/tdcvs_2020_decision_letter_0.pdf mentions changing the Typical Domestic Consumption Values for electricity from 3,100 kWh down to 2900 kWh.

I know it is confusing, that same letter also states this:

So they acknowledge that they are still going to use the 3100kWh figure in the cap calculation, but require the suppliers to use the new 2900kWh figure to meet their obligations.

polymaff

Whatever, 3,000kWh of electricity and 12,000kWh of gas costs under £1,700 at today's wholesale prices.

So don't shed too many tears for the retailers...

StartledJesus

frugalmacdugal said:

Hi,

have a look HERE, might help.

Is there an updated version of this for April 2022 to October 2022? 

frugalmacdugal

Hi,

sorry, can't find one, somebody may help later.

acc

The Ofcom energy price cap is stated to have increased by 54% in April 2022, but based on the typical 12,000 kWh gas and 3,100 kWh elec, and using the average price-capped rates on the the MSE "What is the Energy Cap page" (https://www.moneysavingexpert.com/utilities/what-is-the-energy-price-cap/#calculated), the increase seems to be 55.6%. Using 2,900 kWh elec, the increase seems to be 56.1%.

Can you experts please check my calculations.

Oct 2021

Gas kWh 12000 x 4.07 = 488.40

Gas sc 365 x 26.12 = 95.338

Gas Total = 583.738

Elec kWh 3100 x 20.28 = 628.68

Elec sc 365 x 24.88 = 90.812

Elec Total = 719.49

Energy Total = 1303.23

Apr 2022

Gas kWh 12000 x 7.37 = 884.4

Gas sc 365 x 27.22 = 99.353

Gas Total = 983.753

Elec kWh 3100 x 28.34 = 878.54

Elec sc 365 x 45.34 = 165.491

Elec Total = 1044.03

Energy Total = 2027.784

Oct 21 to Apr 22 Increase

Gas = 983.753 / 583.738 = 68.5%

Elec = 1044.03 / 719.49 = 45.1%

Total = 2027.784 / 1303.23 = 55.6%

The increase is far more for gas than elec.