MSE News: Energy firms confirm new rates under the new price cap

borntobemild

Sounds to me as if they're quoting it with the 5% VAT added.

Gerry1

UncleJoes said:

Martin's article provides the new caps for unit rates and standing charges. That says the new electricity rate is 28p a unit. My energy provider is So Energy and my fixed rate deal ends on 26 March. The only thing I am being offered is their So Flex rate, their variable tariff. However, the electricity unit rate is 29.48p - more than the cap. How is that allowed?

The headline figures are averages because the tariffs vary regionally, as the article states.

QrizB

UncleJoes said:

Martin's article provides the new caps for unit rates and standing charges. That says the new electricity rate is 28p a unit. My energy provider is So Energy and my fixed rate deal ends on 26 March. The only thing I am being offered is their So Flex rate, their variable tariff. However, the electricity unit rate is 29.48p - more than the cap. How is that allowed?

The cap varies by region. There's a table of the regional variations at the link in my signature.

29.48p/kWh is the correct capped rate for someone in the South East. You also get one of the cheaper standing charges.

dunlop27

Eon prepayment meter will only hold a maximum of £250 ? 

Anybody else had this ? 

CplSmudge

I too find it shocking that the standing charge is being allowed to increase by so much. These energy companies have had years of shareholder dividends sucking funds out of the business and they have chosen not to maintain and future proof the network. Now, we are being told it is the reason to pay so much.
Martin's explanation is just the front page. Where's the detail in the increase? How much of the increase is down to the "costs" of transferring customers from failed suppliers? When that has been repaid, will the standing charges go down again? 
How much of the standing charge is now used to maintain the network? I was always told the standing charge was to cover those networks costs, but now, it is being used to pay for other things. Where will we see the results of the "improvements" in the network, when this money is spent? Is the whole network moving underground so that those hit by storms earlier this year, will not suffer in the future? 
I do not see any increase in green policy costs for electricity, these are all factored in already and indeed, some were about to come to the end, so can we have a more detailed explanation of this please?

I find it extremely surprising that consumer champions like Martin Lewis and Which? have not sought to either have better, more detailed explanations, or to challenge the simplicity of the explanation. This is a wholesale rip off by every major supplier - in itself a monopoly situation that is supposed to be against the law.

Tranboy

dunlop27 said:

Eon prepayment meter will only hold a maximum of £250 ? 

Anybody else had this ? 

£250 on a dumb pre pay meter and £250 on the card so as long as the meter is dumb and you don't top up the card after 1st April you will be paying the pre cap rate. The gas limit is over £900 and I've credited my mums meters with the maximum amount possible.

Eightseconds

It looks like Octopus have a lower overnight rate for a few hours for anyone on a smart meter. On the flexible rate. Has anyone else got any info on this? 

MattMattMattUK

CplSmudge said:

I too find it shocking that the standing charge is being allowed to increase by so much. 

If you made an attempt to understand what the standing charge covers then you probably would not find it "shocking", but entirely understandable. 

CplSmudge said:

These energy companies have had years of shareholder dividends sucking funds out of the business and they have chosen not to maintain and future proof the network. Now, we are being told it is the reason to pay so much.

Less than 3% of your bill is the profit that in normal times goes to your energy supplier, currently they are losing money on you. Dividends have averaged 2.6% a year. The reason we are having to pay more is nothing to do with not maintaining the network, it has been fully maintained, the issues is that we burn gas and we need to buy that gas, as the price of gas has risen so have bills. 

CplSmudge said:

Martin's explanation is just the front page. Where's the detail in the increase? How much of the increase is down to the "costs" of transferring customers from failed suppliers? When that has been repaid, will the standing charges go down again? 

The detail is available on this site, published by Ofgem and covered multiple times by the UK's news outlets, if you choose not to read it then that is your prerogative, but it does not mean the information is not available. The standing charge is set to cover the fixed cost, so in theory it will go down again, provided there are no more SoLR costs, however the surcharge to recover the cost of the the government loan-not-loan will also be added to the standing charge. 

CplSmudge said:

How much of the standing charge is now used to maintain the network? I was always told the standing charge was to cover those networks costs, but now, it is being used to pay for other things. 

The components of the standing charged are detailed on the Ofgem network. Who "told" you that? The costs that make up the standing charge have always been very transparent and available from Ofgem, on their website for as long as they have had one.

CplSmudge said:

Where will we see the results of the "improvements" in the network, when this money is spent? 

It depends what you mean by "improvements", but as well as the social components and SoLR costs the majority of the remainder is spend on maintaining the network, which over time includes upgrades, replacing older equipment with newer more efficient kit.

CplSmudge said:

Is the whole network moving underground so that those hit by storms earlier this year, will not suffer in the future?

No, because that would cost hundreds of billions as well as making the network a lot less efficient and cause disruption, environmental damage and issues to farming on a immense scale. 

CplSmudge said:

I do not see any increase in green policy costs for electricity, these are all factored in already and indeed, some were about to come to the end, so can we have a more detailed explanation of this please?

Again, all the "green" cost information is available on the Ofgem website, but largely it has gone into some very small subsidies for non or low CO2 emitting generation.

CplSmudge said:

I find it extremely surprising that consumer champions like Martin Lewis and Which? have not sought to either have better, more detailed explanations, or to challenge the simplicity of the explanation.

They have not needed to, because they understand these things having chosen to read the available information.

CplSmudge said:

This is a wholesale rip off by every major supplier - in itself a monopoly situation that is supposed to be against the law.

It is not a "wholesale rip off" if you bother to read the information available. It is not a monopoly. Just because you do not understand something, does not mean it is illegal. 

webntweb

The price cap rates updated on this site on 15th of March state an average of: Gas 7.37p per kwh and 27.22p daily standing charge. Electricity 28.34p per kwh and 45.34p daily standing charge.

My suppler has offered me a Loyalty fixed rate for 10 months of: Gas 12.34p per kwh and 26.1p per day. Electricity 40.27p per kwh and 24.38 per day.

Have they got their Electricity figures the wrong way round?

Even so their gas kwh rate is nearly 70% higher than the cap.

MattMattMattUK

webntweb said:

The price cap rates updated on this site on 15th of March state an average of: Gas 7.37p per kwh and 27.22p daily standing charge. Electricity 28.34p per kwh and 45.34p daily standing charge.

My suppler has offered me a Loyalty fixed rate for 10 months of: Gas 12.34p per kwh and 26.1p per day. Electricity 40.27p per kwh and 24.38 per day.

Have they got their Electricity figures the wrong way round?

Even so their gas kwh rate is nearly 70% higher than the cap.

Probably not, but as the electricity is considerably higher than the cap they would be willing to have a lower standing charge.