Price cap is meaningless and confusing

barryruss

It would make more sense to refer to the maximum unit rate that suppliers can charge. That way, knowing my usage, I could calculate my expected maximum cost.
To tell me the price cap is set at £1277 doesn't really help unless you include the calculation parameters. 

molerat

But there is no set unit rate.  There are some set parameters that the supplier must charge within but there is leeway for different charging models as long as they don't exceed the maximum charge at the the set usage.  Even the £1277 is not the true cap at the defined usage, it is the average of the regional price caps. This Energy Tariff Calculator  will give you the maximum likely cost for your use.

QrizB

barryruss said:

It would make more sense to refer to the maximum unit rate that suppliers can charge. That way, knowing my usage, I could calculate my expected maximum cost.
To tell me the price cap is set at £1277 doesn't really help unless you include the calculation parameters.

If Ofgem set a maximum unit rate then yes, it would make sense to quote it. But they don't.
Here's an explation of the price cap:
https://forums.moneysavingexpert.com/discussion/comment/78658822/#Comment_78658822

And here's @jimjames marvellous on-line calculator that works it out for you, assuming the maximum standing charge and therefore the minimum price per kWh:
energy.jj99.co.uk

SPOWER

Odd post.  You have a supplier, they have a price.  Maximums have nothing to do with it.

P-J-D_2

Likely not doable as even though the cap is set national (AFAIK), price structure (eg standing charge vs unit rate) can vary by region and by provider.

Thrugelmir

barryruss said:

It would make more sense to refer to the maximum unit rate that suppliers can charge.

I'd be more concerned with where global prices are heading. The Chinese are under command from their Central HQ to secure adequate supplies at any cost. 

Streaky_Bacon

It is pointlessly confusing.

The standing charge should be the maximum that you are allowed to charge for costs not directly linked to a unit of energy and the unit cost should be the maximum that you can charge for costs directly related to the unit of energy.

Easier to understand and calculate and immune to supplier manipulation.

Obviously Ofgem disagree, so there you go.

MaryNB

QrizB said:

barryruss said:

It would make more sense to refer to the maximum unit rate that suppliers can charge. That way, knowing my usage, I could calculate my expected maximum cost.
To tell me the price cap is set at £1277 doesn't really help unless you include the calculation parameters.

If Ofgem set a maximum unit rate then yes, it would make sense to quote it. But they don't.
Here's an explation of the price cap:
https://forums.moneysavingexpert.com/discussion/comment/78658822/#Comment_78658822

And here's @jimjames marvellous on-line calculator that works it out for you, assuming the maximum standing charge and therefore the minimum price per kWh:
energy.jj99.co.uk

Thanks so much for that calculator link! I had been trying to find out if my supplier's rate had been raised to meet the cap. I presumed it had but was curious and that calculator is bang on. 

barryruss

SPOWER said:

Odd post.  You have a supplier, they have a price.  Maximums have nothing to do with it.

Obviously you are as confused as everyone else. Why publish a price cap if it is meaningless.

barryruss

QrizB said:

barryruss said:

It would make more sense to refer to the maximum unit rate that suppliers can charge. That way, knowing my usage, I could calculate my expected maximum cost.
To tell me the price cap is set at £1277 doesn't really help unless you include the calculation parameters.

If Ofgem set a maximum unit rate then yes, it would make sense to quote it. But they don't.
Here's an explation of the price cap:
https://forums.moneysavingexpert.com/discussion/comment/78658822/#Comment_78658822

And here's @jimjames marvellous on-line calculator that works it out for you, assuming the maximum standing charge and therefore the minimum price per kWh:
energy.jj99.co.uk

Thanks for that. Great explanation.

SPOWER

barryruss said:

SPOWER said:

Odd post.  You have a supplier, they have a price.  Maximums have nothing to do with it.

Obviously you are as confused as everyone else. Why publish a price cap if it is meaningless.

It is not meaningless and I am not confused.  You are protected by the cap - It is YOU who is confused.  They have to show it in a certain way and not everyone will be happy with it.  They will get confused and think it is meaningless.  To come on and say you want to know the maximum suppliers can charge is daft.  Your supplier is charging what they charge, who cares about the maximum they can charge.  Am I missing something?