231% energy price increase with new supplier

AboveAndBeyond

I live in a flat, there are 39 flats in total. Our original gas supplier went bust and our Management Agent has written to all of us advising the domestic energy price cap doesn't apply, so our gas rates are increasing 231% (not 54% like everyone else) with the new supplier. Does anyone know if what they are saying about the price cap is correct please? 54% was going to be tough enough, but at 231%, heating and hot water is now completely unaffordable.

Flight3287462

You need to start digging and find out who is your supplier and what the deal is (KWh and standing charges before and after).  Is it a commercial deal as opposed to a residential one?  Try and find out if the management company are getting a fee too.

GingerTim

If you are served by a communal heating system, then yes, they are correct and the price cap doesn't apply. Where I live, it's a new build and our unit price for heating and hot water has gone up from 3p to 9p per kwh - only one supplier was offering a rate of less than 10p per khw.

Fortunately it's that well insulated that the heating isn't needed that often!

Further reading: https://www.theguardian.com/money/2022/jan/15/energy-bills-flat-dwellers-face-massive-rise-despite-price-cap

Robin9

Last year my commercial gas was 1.9p/KWh  - 9.7   and only on a 6 month contract.


OP   -do you pay your electric direct ?

Verdigris

AboveAndBeyond said:

I live in a flat, there are 39 flats in total. Our original gas supplier went bust and our Management Agent has written to all of us advising the domestic energy price cap doesn't apply, so our gas rates are increasing 231% (not 54% like everyone else) with the new supplier. Does anyone know if what they are saying about the price cap is correct please? 54% was going to be tough enough, but at 231%, heating and hot water is now completely unaffordable.

There is no cap on commercial supplies, so what the Agents are saying is correct.

AboveAndBeyond

Thank you for the information 

Yes it's a communal heating/hot water system, which runs from central gas boilers, so the gas bill is shared between us based on how much we use.

Electricity is our own responsibility, we all have different suppliers and pay that bill direct ourselves.