How do I calculate percentage over the price cap?

guineapiggirl13

I keep reading only to fix if the deal is less than 40% above the cap, but I'm not sure how I calculate this! Sorry, it's probably a really stupid question but I don't want to make a terrible decision.

We're currently on the svr for EON Next:
Elec- 20.14 p/kwh, 24.38 standing charge/day

Gas- 4.04 p/kWh, 26.12 standing charge/day

On this we pay £150/month

They're offering a 12 month deal:
Elec- 26.25/ 40.57
Gas- 5.52/ 42.31
On this we'd pay £193

What figures do I use to calculate the increase? The p/kWh? The monthly dd?

Flight3287462

How long is the offer open for?  The new SVR rates come out tomorrow and I imagine all deals will be removed until they make a plan.

Looks a good deal to me especially if you are not an ultra low user.  Standing charges are quite high though.  Break your annual usage down and do the sums.

eg 3,000KWh electricity + standing charge x 365 days = ?? and do the same for the gas, then calculate the overall percentage for each, I would have preferred a two year deal though can you explore that?

PennineAcute

The cap value is based on 2900 kWh of electricity and 12000 kWh of gas (assuming you are on a standard meter.)

The present cap value rates are (allowing for regional variance)

Gas UP 4.04p  SC 26.12p
Elec UP 20.14p SC 24.38p

and the current cap (based on using 2900 kWh of elec and 12000 kWh gas) is £1277

With the tariff you want to compare do

2900 * Elec Unit Price + 365 * Elec SC + 12000 * Gas Unit Price + 365 * Gas SC

Let's assume this calculation gives you a value of £1800.

The next step is to do

1800 - 1277 = 523

Then follow this by

523/1277 * 100 = 40.96...%

This is the percentage increase that Martin has been talking about.  In this example, just under 41%

I fixed my gas and elec and the beginning of January

My rates are as follows:

Gas UP 5.48p  SC 26.123p
Elec UP 22.36p SC 24.38p

so I do

2900 * 0.2236 + 365 * 0.2438 + 12000 * 0.0548 + 365 * 0.26123 = 1490.38

1490.38 - 1277 = 213.38

213.38 / 1277 * 100 = 16.71% increase.

In my case, I was way under the 40% that Martin mentioned.

guineapiggirl13

Right. This is so helpful, thank you both. So, assuming my maths is correct, if I use my own estimated yearly figures, it looks like a 37% increase. If I use the average amounts of 2900 and 12000, it's a 35% increase so I suppose it might be worth fixing.

Thanks again, the 40% comment makes more sense now 

guineapiggirl13

Oh and the 2 year deal is ridiculous so it's 12 months or nothing 

Astria

It might be worth fixing, assuming that the increase announced tomorrow will be 50%, but if it's less (maybe they spread out the increase over a number of years for example) then it might not. It's a gamble whichever way you look at it.

markin

Shame the math wasn't posted by Martin in the original post