MSE News: 'Around two million EDF customers will see bills increase by £693/yr

MSE_Will_L

Around two million EDF Energy customers on standard tariffs will see gas and electricity bills jump by a typical £693/yr from April

Read the full story here: 
'Around two million EDF customers on standard tariffs will see gas and electricity bills go up £693/yr from April'

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wolvoman

Why is MSE not campaigning to have the price cap increase less focussed on standing charges and more focussed on unit charges?

It seems a glaring miss by Mr Lewis as the obvious area where consumers can mitigate some of the rise is by cutting back on usage, but this cutting back will be part-negated by the standing charges taking a bigger brunt of the price rise than the consumption?

What_time_is_it

Have EDF announced their new price structure? i.e. kwh rates and standing charges per fuel per region?

QrizB

wolvoman said:

Why is MSE not campaigning to have the price cap increase less focussed on standing charges and more focussed on unit charges?

The cost of maintaining a supply to a property is considerably higher than the annual standing charge. From Ofgem's announcement:

Of the £1971 price cap, the wholesale price of energy only makes up £1077+VAT = £1131. The remaining £840/yr is not directly related to the amount of energy consumed.

If the standing charges accurately reflected the cost of providing the service, they would total £840/yr. The current cap however limits them to around £260/yr.

It seems a glaring miss by Mr Lewis as the obvious area where consumers can mitigate some of the rise is by cutting back on usage, but this cutting back will be part-negated by the standing charges taking a bigger brunt of the price rise than the consumption?

The standing charge cap is a similar price to 2kWh/day of electricity or 4kWh/day of gas.

007apm

I am concerned by the relative increase in the standing charge.  I await an installation of solar panels/battery which might cut our electricity usage from 4000kwh to 500kwh pa from the grid but the increase in standing charge has a disproportionate impact  on low usage customers costs.  To encourage the green agenda, usage charges are more appropriate than fixed charges.  The need for help for fuel poverty however is independent of how bill is calculated.

QrizB

007apm said:

... I await an installation of solar panels/battery which might cut our electricity usage from 4000kwh to 500kwh pa from the grid but the increase in standing charge has a disproportionate impact  on low usage customers costs.

On the current cap, 4000kWh plus SC will cost you around £920 per year. 500kWh plus SC will cost £195. your solar installation will be saving you £725 annually.

From April, those prices become £1300 and £305 respectively. You will be saving £995 annually.

To encourage the green agenda, usage charges are more appropriate than fixed charges.

Nevertheless, you appear to save more money under the new cap than you did under the old one.

(As an aside, I would be quite surprised if you manage to reduce your electricity import to 1/8th of the current figure. It would be helpful if you could update your thread with details of how you plan to achieve this.)

007apm

Thanks - Hard to lose on the green part, actual figures simply change the payback time.  Thanks for the advice.

I had a moment of enlightenment over night - everyone has electric but not gas.  My standing charge for electricity will rise by £78pa.  The rise includes £68 to pay for failed energy firms.  @MartinLewis - Could you persuade Rishie to pay for the failed firms within the £200 'loan' (say £80 not repayable) and make say a £120 repayment say over the 5 years to help us all.   

The market failures were not the customer's fault, nor were they largely the provider companies who went bust fault; but they were as a direct result of a price cap. The only winners are the gas supplier who surely made larger profits from the increase in world prices.

MattMattMattUK

007apm said:

Thanks - Hard to lose on the green part, actual figures simply change the payback time.  Thanks for the advice.

I had a moment of enlightenment over night - everyone has electric but not gas.  My standing charge for electricity will rise by £78pa.  The rise includes £68 to pay for failed energy firms.  @MartinLewis - Could you persuade Rishie to pay for the failed firms within the £200 'loan' (say £80 not repayable) and make say a £120 repayment say over the 5 years to help us all.   

How would that actually help anyone? If that happens it needs to be funded from general taxation, which means higher taxes, higher borrowing, or lower spending elsewhere. As this is a global supply chain issue there is nothing that can be done that doesn't cost the taxpayer in some way. If the government is going to spend my money on something energy related it would be far better putting it into energy security, building more nuclear and renewable generation capacity.

007apm said:

The market failures were not the customer's fault, nor were they largely the provider companies who went bust fault; but they were as a direct result of a price cap. The only winners are the gas supplier who surely made larger profits from the increase in world prices.

Most of those gas suppliers were not UK based either, the ones who have made the most from the UK are in the Middle East and Norway. UK based exploration, extraction and processing companies have made record profits, almost entirely on their international operations and they will pay 40% corporation already, so the taxpayer already stands to benefit.

jamei305

What_time_is_it said:

Have EDF announced their new price structure? i.e. kwh rates and standing charges per fuel per region?

No, the article appears to be based only on this week-old press release:

https://www.edfenergy.com/media-centre/news-releases/edf-statement-changes-its-prices

financial_pickle

I feel really stupid that I’ve not been paying more attention to this. I was switched by Look after my bills to a company that then went bust last year as a result was moved to EDF Energy. As such I anticipated that my bills would probably double from April which I could cope with so tried to reduce my garage a little and put it to the back of my mind. I’ve logged on to provide meter readings today and my rate has more than quadrupled since my last bill and we’ve not even hit the April rise yet. I feel sick at the prospect that I now can’t pay as a result of these changes and they’re going to go up even more in April. 

financial_pickle

financial_pickle said:

I feel really stupid that I’ve not been paying more attention to this. I was switched by Look after my bills to a company that then went bust last year as a result was moved to EDF Energy. As such I anticipated that my bills would probably double from April which I could cope with so tried to reduce my garage a little and put it to the back of my mind. I’ve logged on to provide meter readings today and my rate has more than quadrupled since my last bill and we’ve not even hit the April rise yet. I feel sick at the prospect that I now can’t pay as a result of these changes and they’re going to go up even more in April. 

That was meant to be useage not garage - that’s how stressed I am about it 😣