Gas Price increase of 80% from 1st April

flustered

Perhaps I am missing something here but British Gas emailed me today stating that the gas unit price (in pence per kWh) will increase from the current 4.047 to 7.367 from 1st April 2022.

That is an increase in the gas unit price of 82% 

I am on British Gas Standard Variable Tariff - I thought that the cap on price increases was in the region of 54%.    

I rang British Gas but the explanation they tried to give me was incomprehensible.  Please can someone explain how an 80% rise in the unit rate is allowed if the cap is 54%?

Verdigris

I am on British Gas Standard Variable Tariff - I thought that the cap on price increases was in the region of 54%.

The 54% quoted in the press is the average for dual fuel. Gas has increased more than electricity.

It it any comfort, the standing charge for electricity has increased more.

flustered

Ah, thank you Verdigris.  

The_Fat_Controller

@flustered you need to watch Martin Lewis and get a better understanding of how the cap works.

https://www.youtube.com/watch?v=pa3obAubmqI

flustered

The_Fat_Controller said:

@flustered you need to watch Martin Lewis and get a better understanding of how the cap works.

https://www.youtube.com/watch?v=pa3obAubmqI

Thank you, The_Fat_Controller.

Well, it's still not clear to me.  In the video you attached, at 0:55 Martin Lewes says this: "...it's actually a cap on the standing charge and the unit rates for gas and electricity."   If the cap is on the gas unit rate, then how come the British Gas Standard Variable Tariff unit rate is rising by over 80% from 1st April 22 ? 

EssexHebridean

What percentage is the gas Standing Charge increasing by? 

MWT

flustered said:

The_Fat_Controller said:

@flustered you need to watch Martin Lewis and get a better understanding of how the cap works.

https://www.youtube.com/watch?v=pa3obAubmqI

Thank you, The_Fat_Controller.

Well, it's still not clear to me.  In the video you attached, at 0:55 Martin Lewes says this: "...it's actually a cap on the standing charge and the unit rates for gas and electricity."   If the cap is on the gas unit rate, then how come the British Gas Standard Variable Tariff unit rate is rising by over 80% from 1st April 22 ? 

The cap is set separately for gas and electricity, it isn't one cap for them both.

wild666

Add the SC's plus 1 kWh charges together then add the new charges from April together. Take the old charge from the new charge and that should leave somewhere around 54% more on the combined total. It's the combined total not that of an individual utility like gas which has shot up more than the electric.

Ultrasonic

flustered said:

Well, it's still not clear to me.  In the video you attached, at 0:55 Martin Lewes says this: "...it's actually a cap on the standing charge and the unit rates for gas and electricity."   If the cap is on the gas unit rate, then how come the British Gas Standard Variable Tariff unit rate is rising by over 80% from 1st April 22 ? 

I may be missing the point of your question, but the cap is increasing on 1 April, hence prices rising then.

flustered

EssexHebridean said:

What percentage is the gas Standing Charge increasing by? 

EssexHebridean - According to the email I got yesterday from British Gas, the gas standing charge is increasing from 26.123 to 27.220 pence per day.   That's an increase of 4.2%.
And to say again, in the same email from British Gas, the gas unit rate per kWh is increasing from 4.047 to 7.367 pence per kWh. That's an increase of 82.04%.

MWT said:
The cap is set separately for gas and electricity, it isn't one cap for them both.

MWT - Thanks.  I understand that (I think).  But my electricity comes from a different company (Octopus - 2-year fixed rate). 
Are you saying that if I had both gas AND electricity from British Gas, the combined 2 unit rate increases would not have exceeded 54% ?

wild666 said:

Add the SC's plus 1 kWh charges together then add the new charges from April together. Take the old charge from the new charge and that should leave somewhere around 54% more on the combined total. It's the combined total not that of an individual utility like gas which has shot up more than the electric.

wild666 - Thanks.  I only have gas from British Gas - electricity is from Octopus and is on a 2-year fixed rate. 

Ultrasonic said:

I may be missing the point of your question, but the cap is increasing on 1 April, hence prices rising then.

Ultrasonic - I realise that the cap is increasing on 1 April.  It's the 82% gas unit rate rise (see reply to EssexHebridean above) that I am querying.

EssexHebridean

flustered said:

EssexHebridean said:

What percentage is the gas Standing Charge increasing by? 

EssexHebridean - According to the email I got yesterday from British Gas, the gas standing charge is increasing from 26.123 to 27.220 pence per day.   That's an increase of 4.2%.
And to say again, in the same email from British Gas, the gas unit rate per kWh is increasing from 4.047 to 7.367 pence per kWh. That's an increase of 82.04%.

But your gas standing charge has gone up by LESS than 54% - and if you look at your electricity rates, you'll find that while the Standing charge has increased hugely - 100% for a fair number of folk - the unit rate has increased by a lot less of a percentage (for most - the exception will be those on E7 tariffs with Utility Warehouse). This is my point - you need to look at the whole picture to get a proper grasp of the increase - not just take selected bits of it and say they're too high. The "54%" quoted on the cap is an average across the two fuels.