Bill increase is 91% not 54% for most people, especially those who follow MSE

harrys_dad

There has been huge publicity, including from Martin Lewis, for the "54% increase in the price cap". For most people however who are on expiring fixed rate deals the year on year increase is more like 91%, or close to doubling. I am surprised I have not seen or heard much about this, or maybe I have not been looking at this board closely enough.

The calculation is as follows: Lets start with "SVRT April 2020" (Standard Variable Rate Tariff in April 2020 as determined by the price cap at that time). This increased by 12% in October 2020, so became 1.12 x SVRTApril2020. This then increased by 54% now, so became 1.12 x SVRTApril2020 x 1.54= 1.72 x SVRTApril2020, so a year on year increase of 72%.

Most people however, especially those who follow MSE, were on cheaper fixed term deals. I was, and it was 10% cheaper than SVRTApril2020, and expires in 3 days time. No new fixed rate tariffs are available so I have to transfer to the new standard variable rate at the price cap. This means that I am moving from 0.90 SVRTApril2020 to 1.72 SVRTApril2020, which is  1.72 / 0.90 x 100 = 191% of what I was paying, an increase of 91%, almost double!

Ultrasonic

harrys_dad said:

There has been huge publicity, including from Martin Lewis, for the "54% increase in the price cap". For most people however who are on expiring fixed rate deals the year on year increase is more like 91%, or close to doubling. I am surprised I have not seen or heard much about this, or maybe I have not been looking at this board closely enough.

With respect, this. It's been coming up several times a day for ages. This was also pinned for a while but seems to not be now:

https://www.moneysavingexpert.com/news/2022/03/martin-lewis--why-your-energy-bills-might-be-increasing-by-more-/

harrys_dad

I just found the link to that video on an email from MSE which arrived just after I posted. I was about to post a correction!

BUFF

the ~54% increase for the "average" user is the uplift from the previous (October 2021) SVR to the April 2022 SVR, it is not an annual figure.
For those coming off old, cheap fixes onto April 2022 SVR it can be several hundred %.

Mstty

It's all here, most knowledgeable people know the real rate.

What I was disappointed with was this wasn't explained by Martin on his big energy slot on ITV this week.

There's a massive shock coming to a lot of people that have buried their head in the sand and not bothered to work out the real cost to them come tomorrow.

On the flip side we've had cheap energy for so many years. We were paying £60 a month 18 months ago (elec only as that's all we use ASHP etc no gas or oil) on a fixed rate of 10p kWh 18. Our last supplier Symbio went to the wall with us paying 14p kwH at £75 per month and our new fixed rate 2 year deal with eon next starts tomorrow at 29.24p kwH so we have gone, in a very short time, from £60 to £177.70.

However not moaning it's making us look at things and being more energy efficient, not using the tumble dryer as much, couple less loads of washing a week etc so will be an interesting year to see if our usage goes down a fair amount.

MoneyMon555

If you are coming off a cheap annual fix anytime in the last few months, then you were going to get hit badly (talking specifically about dual fuel monthly direct debit type deals). If you are coming off an annual cheap fix next few weeks/months, then I can't imagine the increase...it could be 3 times as much?  

Ally_E.

Mstty said:

It's all here, most knowledgeable people know the real rate.

What I was disappointed with was this wasn't explained by Martin on his big energy slot on ITV this week.

There's a massive shock coming to a lot of people that have buried their head in the sand and not bothered to work out the real cost to them come tomorrow.

On the flip side we've had cheap energy for so many years. We were paying £60 a month 18 months ago (elec only as that's all we use ASHP etc no gas or oil) on a fixed rate of 10p kWh 18. Our last supplier Symbio went to the wall with us paying 14p kwH at £75 per month and our new fixed rate 2 year deal with eon next starts tomorrow at 29.24p kwH so we have gone, in a very short time, from £60 to £177.70.

However not moaning it's making us look at things and being more energy efficient, not using the tumble dryer as much, couple less loads of washing a week etc so will be an interesting year to see if our usage goes down a fair amount.

You say on the flip side we've had cheap energy. Everyone did. All of Europe had the same cheap energy. Prices are going up in certain countries by a lot like in UK, but in places like France it's only 4% increase. I don't think saying we had cheap energy is quite fair, when that was the market in many places, not exclusive to UK. 

JGB1955

Wily MSE followers would have taken a 24 month fix back in August/September 2021.  The writing was on the wall then...

Mstty

@Ally_E. I don't think I restricted my comment to UK only?

rp1974

JGB1955 said:

Wily MSE followers would have taken a 24 month fix back in August/September 2021.  The writing was on the wall then...

Wily MSE follower here,took a fix in August 2021 with Symbio,we all know what happened next.
Very much enjoy paying Eon considerably more,miss the entertainment value with Symbio though.

2010

All the customers who`s supplier went bust have already had their 37% or even more increase and now they`re getting the other 54%.

I was on a fixed deal with Avro until this coming May but they went belly up last Sept.
I and others probably had an even bigger increase than the 91% mention by the OP.