Energy news in general

bristolleedsfan

The boss of the UK's energy regulator has warned that the energy price cap is expected to rise to around £2,800 in October.

Jonathan Brearley told MPs that the price cap, now at £1,971, would increase by nearly £1,000, due to continued volatility in the gas market.

https://www.bbc.co.uk/news/business-61562657

fryedslyce

bristolleedsfan said:

The boss of the UK's energy regulator has warned that the energy price cap is expected to rise to around £2,800 in October.

Jonathan Brearley told MPs that the price cap, now at £1,971, would increase by nearly £1,000, due to continued volatility in the gas market.

https://www.bbc.co.uk/news/business-61562657

£829 is not nearly a £1,000, it's almost as if he's deliberately trying to scaremonger, and of course the media will lap it up.

brewerdave

bristolleedsfan said:

The boss of the UK's energy regulator has warned that the energy price cap is expected to rise to around £2,800 in October.

Jonathan Brearley told MPs that the price cap, now at £1,971, would increase by nearly £1,000, due to continued volatility in the gas market.

https://www.bbc.co.uk/news/business-61562657

Forget the EON boss's prediction of 40% of homes in fuel poverty from October - it'll be even worse if the cap rises that much !!

Mstty

How does this sit with your own personal small rise in the price cap @QrizB does any of this make sense to you with the data you are seeing?

markin

Mstty said:

How does this sit with your own personal small rise in the price cap @QrizB does any of this make sense to you with the data you are seeing?

Unless its rocketed in just the last week.

16th. https://forums.moneysavingexpert.com/discussion/comment/79205733/#Comment_79205733

QrizB said:

We're half-way through May, month four of six for the October cap pricing period, and how do prices for the month look? "Optimistic" is the word I'd choose (although it may turn out that "deceptive" would have been better).

So far the average wholesale prices for the month are:

• May to date - gas 2.53p/kWh, electricity 12.2p/kWh

Now before anyone gets too excited these could be a temporary blip and they could shoot back up again at any time, but at least we've had two weeks (from the past fifteen) with more normal prices and that's brought the period average down a little bit.

Currently my model is predicting an October cap of £1353 £2266, an increase of £295 or 15%.

My next scheduled update is at the end of this month.

bristolleedsfan

markin said:

Mstty said:

How does this sit with your own personal small rise in the price cap @QrizB does any of this make sense to you with the data you are seeing?

Unless its rocketed in just the last week.

16th. https://forums.moneysavingexpert.com/discussion/comment/79205733/#Comment_79205733

From 2 months ago https://www.thetimes.co.uk/article/spring-statement-2022-energy-bills-set-to-pass-2-800-from-october-np0gw5kpp
https://www.dailymail.co.uk/news/article-10645825/Energy-bills-set-soar-2-800-forecasters-warn-price-cap-likely-rise.html

Sea_Shell

It's starting to feel like this £2800 was a "done deal" ages ago, before they've actually reached the end of the "calculation period"?!?  😲

It will be interesting to see what the actual cap and breakdown is, once formally announced.

Or are we being softened up, so that they can announce something slightly lower (but still higher!) so people will think it's a "better" outcome?

Effician

At least with some forewarning it allows time for customers to budget, providers to plan & pressure to be applied to government . Waiting for a figure to emerge in August with so much uncertainty around is good for no one.

I wouldn't be surprised if a certain amount of pressure from the energy providers was applied to Ofgem to get a figure they could work with.

QrizB

Mstty said:

How does this sit with your own personal small rise in the price cap @QrizB does any of this make sense to you with the data you are seeing?

I honestly don't see how you can get to £2800 based on the published data.

It could be that Ofgem have their own private source of wholesale price data that is considerably higher than the day-ahead spot prices I'm using, and/or there are a bunch of additional add-ons (more SoLR costs, perhaps) that haven't been announced yet.

wakeupalarm

Maybe they will add £500 to QrizB's £2266 figure above and round up the average bill to £2800 and then give £500 rebate to everyone. Like the £200 loan not loan in reverse. 
Kwasi vows £500 support for £2,800 price cap