Wholesale v energy costs

hotlips46

According to the energy forecast chart/price cap. Why are customers being charged so much more than wholesale cost.

QrizB

Welcome to the forum.

hotlips46 said:

According to the energy forecast chart/price cap. Why are customers being charged so much more than wholesale cost.

Because it costs money to supply energy to your home

FatherTireseus

https://www.ofgem.gov.uk/energy-advice-households/costs-your-energy-bill

Because your bill is made up of the costs of the network to get the energy to your home (pipes, wires); the costs of the suppliers who supply your energy (staff costs, IT systems etc); VAT.  There's also a significant chunk on the electricity bill in particular for environmental and social obligation costs - e.g. things like providing money to fund the Warm Homes scheme. 

It's like when someone goes into a coffee shop and pays £3 for a cappuccino.  The cost of the coffee, milk and cup is nowhere near £3.  But the cost includes an element of staff wages, rent / rates in the coffee shop premises, VAT etc.

stewart2021

Standard dally gas & Electricity rates are going up in April 2022, so the government can recoup the £200 they are giving to every household in October, but over the five year they will take this back off every household,
I worked out, I would pay nearly double the initial £200 payment (£348) for a payment I never wanted. Just another government stealth tax with no option for the consumer, how is this wright.

MWT

stewart2021 said:

Standard dally gas & Electricity rates are going up in April 2022, so the government can recoup the £200 they are giving to every household in October, but over the five year they will take this back off every household,
I worked out, I would pay nearly double the initial £200 payment (£348) for a payment I never wanted. Just another government stealth tax with no option for the consumer, how is this wright.

This is wrong, the April price rise has nothing to do with the £200 payment later in the year.

https://forums.moneysavingexpert.com/discussion/6339555/mse-update-why-is-the-standing-charge-for-electricity-nearly-doubling-from-1-april#latest