My 'Avro rates' from Octopus appear to be above the price cap!

Arthur494

We have been switched from Avro to Octopus, and now have Octopus's new 'Flexible Avro' rates.  By my calculation the average user on these rates would be paying £1,348 (VAT included) which is above the price cap of £1,277.
Ofgem's website shows that the £1,277 should cover the supplier's wholesale, network and other costs, profit, and various other items including VAT for the average consumer.
The average consumer uses 12,000kWh and 2,900kWh of gas and electricity respectively..

Electricity	Daily	365	0.2403	88
	kWh	2,900	0.2137	620
Gas	Daily	365	0.2611	95
	kWh	12,000	0.0401	481
Total				1,284
VAT		5%		64
Annual Total				1,348

have I missed something?

[Deleted User]

https://forums.moneysavingexpert.com/discussion/6299083/understanding-ofgem-price-cap/p1

MWT

Arthur494 said:

have I missed something?

#1 You have added VAT to prices that already include VAT.

#2 £1277 is the average of the regions, so some will be higher and some lower than that figure.

matelodave

Each region has a slightly different price cap and there are three different cap prices for each region as well, depending on whether you pay by DD, when billed or paygo so you need to do your sums based on where you live and how you pay.

Arthur494

Oops!  I added VAT to already VAT-inclusive prices.  So the correct figure is £1,284.

Avro always quoted prices before VAT; maybe that's where they went wrong?

Thanks for your help.

PHILMSE

Furthermore, you quote 21.37 p/KW for Electricity.
The figure that Octopus gave me ( for my normal Single Tariff Meter ) was 19.95 p/KW
Is your Meter a Single Tariff  Meter or for a Dual Tariff Meter ?
My calc, for the Standard User, using my 19.95 p/KW is £1242 /Year

However, my main concern at the moment is whether the AVRO Flexible Tariff is a Price Capped Tariff.
i am starting a new post on that