Standard Variable Tariff(SVT)

molerat

The much (mis)quoted 54% is the average across all regions.  Some areas will be more and some less.

QrizB

Yes it's time for a new version of this post to explain the October 2022 price cap!

Here is the overview of 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 you need to 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:

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. The Ofgem data looks lke this (again, the table includes VAT for the SC ppd and ppkWh prices):

But converting this into eg. a pair of Economy 7 tariffs, one night-rate and one day-rate, isn't straightforward.

In Ofgem's model, it's assumed that the consumer uses 58% on the day rate (DR) and 42% on the night rate (NR). The energy company can therefore set two rates such that DRx0.58 + NRx0.42 = the rate in the table.

Taking the average rate of 49.05p/kWh from the table, the following pairs of tariff rates would all be acceptable to the cap:

• DR 60p/kWh, NR 33.93p/kWh
• DR 65p/kWh, NR 27.02p/kWh
• DR 70p/kWh, NR 20.12p/kWh

... but there's an endless combination of options available for the suppliers to choose from.

If you don't trust my sums and would like confirmation of the above rates, here is where I will put links to suppliers' SVT rate cards once they publish them.

David_in_Moray

Total Heating Total Control (THTC) assumes at least 60% Heating Control Units which is counter to the OFGEM assumption of 42% Night Units...Martin Lewis said last night on TV that they are still trying to confirm how dual tariffs are going to work out...I don't think SSE knows themselves! 

pochase

THTC is a special tariff and not E7.

It is also supposed to be phased out in spring 2023.

MrMuffet

I am currently on E7 with Shell. From comparable analysis with the declared average and regional cap rates prior to 1st October it seems my day rate electricity rate is 8.5-11% higher. Does anyone know whether Shell use Ofgem's weighting rate of 58/42 or have they declared how they calculate the variable weighting. Main reason is my percentages are closer to 82/18. Also is there a calculator system anywhere or do I just substitute the percentages in the Ofgem table calculation? 

[Deleted User]

MrMuffet said:

I am currently on E7 with Shell. From comparable analysis with the declared average and regional cap rates prior to 1st October it seems my day rate electricity rate is 8.5-11% higher. Does anyone know whether Shell use Ofgem's weighting rate of 58/42 or have they declared how they calculate the variable weighting. Main reason is my percentages are closer to 82/18. Also is there a calculator system anywhere or do I just substitute the percentages in the Ofgem table calculation? 

Everyone uses OFGEM's weighting rate.

What are your rates?

MrMuffet

Hi SparkyGrad
Actual charges from their bills. Service charge 42.7p/day, Day rate 30.762 p/KWh,  Night tariff  16.691p/KWh. The E. Midlands cap service charge was 44.75/day, Day rate was 27.63 p/KWh according to Money Expert site. Seems they have dropped service charge by circa 2p/day and clawed it back with 3+p/KWh.

The published base tariff for the Shell E7 direct debit shown on the bill is Service charge 45.85p/day Day rate  39.360p/KWh Night rate- 17.868p/KWh
I will do some calcs using the method from QrizB when I find the relevant SVT tables which appear to be buried somewhere in Ofgem.

[Deleted User]

That’s a weighted average (for the "published base tariff") of 30.33p/kWh isn’t it?  Which I think is under the cap.

And on the "actual charges" it's 24.85p/kWh which seems very low.

MrMuffet

[Deleted User] said:

That’s a weighted average (for the "published base tariff") of 30.33p/kWh isn’t it?  Which I think is under the cap.

And on the "actual charges" it's 24.85p/kWh which seems very low.

Perhaps did not make it clear the price I was charged was 30.762p/KWh after the weighted adjustment which is not too far from your 30.33p/KWh calculation. Thanks for your time.

[Deleted User]

MrMuffet said:

Deleted_User said:

That’s a weighted average (for the "published base tariff") of 30.33p/kWh isn’t it?  Which I think is under the cap.

And on the "actual charges" it's 24.85p/kWh which seems very low.

Perhaps did not make it clear the price I was charged was 30.762p/KWh after the weighted adjustment which is not too far from your 30.33p/KWh calculation. Thanks for your time.

Now I'm confused.

You wrote "Day rate 30.762 p/KWh,  Night tariff  16.691p/KWh."  That's two prices.  That can't be a weighted average.

You do know that there is not (and never has been) any cap on either the day rate or the night rate?

Are you trying to work out whether your tariff in September was correct, or whether it's correct now?