Energy Price Cap Explained

pochase

The email clearly says that your direct debit will increase on 22nd of March. It is not even something "future" debit order or any other wording that can be misunderstood.

cas13g

Yes, I thought the new charges would be taken as of April's payments though, not March but thank you 

Ultrasonic

cas13g said:

Yes, I thought the new charges would be taken as of April's payments though, not March but thank you 

Just to be clear, what your energy actually costs changed on 1 April and your bills will reflect this. It's just the DD payment that changed a little sooner.

neilmorgan

On Martin Lewis Money Show this week he showed a chart of wholesale price and price cap.
There were some spikes for very, very short periods but the cap seems to have risen well above the increase in average wholesale price
1) Is the data behind that available anywhere?
2) What formula is used to calculate the cap?
3) Does the cap ever reduce?

pochase

neilmorgan said:

On Martin Lewis Money Show this week he showed a chart of wholesale price and price cap.
There were some spikes for very, very short periods but the cap seems to have risen well above the increase in average wholesale price
1) Is the data behind that available anywhere?
2) What formula is used to calculate the cap?
3) Does the cap ever reduce?

The data is averaged over a time period of 6 months, so spikes are not that meaningful. 

There are several websites where you can access the whole sale prices, but Ofgem to my knpowledge does not make their calculation criteria available in detail. There are different organisations who do a forecast, as well as @QrizB here in the forum.

Yes the cap was fluctuating up and down over the last years.

https://www.energyhelpline.com/help/the-history-of-ofgems-energy-price-cap

In the end nothing above the above will be of importance, the new cap that Ofgem will announce in August or September is what will  set the new SVT.