Energy Price Cap Explained

MWT

facade said:

The more people that bother OFGEM because of the overly complicated way that they present what should be simple data, the more chance that they might simply publish capped SC & unit rates rather than obfuscate it amongst fictitious "average" usage, when most people are not "average" by the very definition of "average"

The answer isn't simple though, it is the attempt to pretend that it is simple that causes the problems.

Paradoxically, It would actually be better for most consumers if Ofgem didn't publish anything at all and left it for the suppliers to tell their customers what their tariff rates were...

Ofgem can't publish capped SC and unit rates because they don't set the cap that way for all the variations of meter type, payment method etc. and especially with regard to E7, there is latitude for competitive differences between suppliers.

RogerBareford

MikeRob63 said:

MWT said:

MikeRob63 said:

QrizB said:

Welcome to the forum.

MikeRob63 said:

My percentage increase from April 1 is 63%.

How much energy do you use each year (this will be shown on your bill as your Estimated Annual Consumption)? Were you on EDF's Standard Variable Tariff before 1st April, and are you remaining on it after?

Hi, I am currently on EDF's standard variable tariff and will be on it after April the first. My calculations are based on 2000kWh electricity and 20000kWh gas.

Then your numbers make sense.

Gas consumption has had a higher percentage rise than electricity, roughly 83% vs 41% so your high gas use shifts your overall percentage higher..

The standing charge differences have a relatively low impact on the total compared to the consumption.

Just rough numbers using two capped tariffs for the Eastern region (Octopus since i had those to hand)

	kWh	Now			April
Electricity	2000	0.2067	413.40		0.2923	584.60		41.4%
		0.2401	87.64		0.3765	137.42		56.8%
		Total	501.04			722.02		44.1%
Gas	20000	0.0401	802.00		0.0734	1468.00		83.0%
		0.2611	95.30		0.2722	99.35		4.3%
		Total	897.30			1567.35		74.7%
			1398.34			2289.38		63.7%

Hi your tariff is very close to mine and the calculation is almost identical.  I'm just curious as to why EDF seem reluctant to admit to me that depending on usage, customers may well end up with a percentage increase that is higher than the 54% which is freely referred to for the standard variable tariff. With probable increases again in October this will have a compound effect. Like many others I have turned the stat down a degree and adjusted the programmer. 

The "54%" increase is just a figure used based on average usage as an easy to report and understand figure that the media can pick up and report that the majority of people will understand. The actual figures they need to work too for each region are available on the ofgem website if you want to find out if what EDF are proposing are correct and then you can compare them against your usage.

Whether or not EDF give you a statement that says for your personal projection the increase will be more than 54% makes no difference as nobody has promised a 54% increase for all users across the board no matter their usage.

cas13g

I am with SSE for both gas and electric, I have a smart meter for my electric but not my gas.I understand the prices were going up as of 01/04, however, SSE took the new increased payments from me on 22/03 which I was not expecting, is this normal.I have been unable to contact them and the app is still down today.

pochase

I think you mean they have taken a higher direct debit already on 22/03/2022, they have not charged you the new tariffs.

Have you received communication that they are going to increase your direct debit? That could be by email, letter or it could be on your bill.

cas13g

I have an email which does state the new amount of both direct debits going forward and it is the amount they took for march

Ultrasonic

cas13g said:

I have an email which does state the new amount of both direct debits going forward and it is the amount they took for march

I expect the e-mail is probably worded such that it tells you that the March payment would be this amount. Something along the lines that your next and future payments will be this amount.

cas13g

Ultrasonic, yes that's right but I assumed the new payments would start in April not March 

Ultrasonic

cas13g said:

Ultrasonic, yes that's right but I assumed the new payments would start in April not March 

I think you missed my point there  .

cas13g

This is the email I received

Ultrasonic

cas13g said:

This is the email I received

That's pretty clear cut then. As I thought, it very explicitly says when the change will happen.