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Energy cap and energy related bills

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DouglasS
DouglasS Posts: 8 Forumite
Eighth Anniversary First Post Combo Breaker
I thought the "energy cap" - capped the limit the energy suppliers could charge?

My supplier went bust late last year (October). We'd been paying £107 a month combined - (£1284) yearly. We were always in credit. We usually got a rebate of about £200 per year.

When they went bust, we got a text from British Gas, saying they were taking over the account. After that, we heard very little, bar the odd few texts telling us they hadn't forgotten about us. I'd kept the £107 per month aside, so that's not an issue.

When the price cap rose a few days ago. British Gas sent me a link to my "New account" and the tariff they've put me on is something like £3700.

Also, their "Assumed" annual consumption is absurdly wrong. Too low on Electric and way too high on Gas.

Any help from anyone to help understand this mess?

TIA

Comments

  • MWT
    MWT Posts: 10,273 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    The cap is just on the amount they can charge on a variable tariff for a specific consumption level, it is not an absolute cap on the level of a bills.
    Ignore that though it is a distraction.
    First check that you are still on the variable tariff that you were first put on when you transferred to BG, and that you have not somehow been moved to a fixed tariff...
    Then work out your own actual use over the last year (kWh) and raise a complaint with BG if that actual use is very different to the use they are predicting.
  • jimjames
    jimjames Posts: 18,697 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    No the cap doesn't limit what suppliers can charge. It caps the unit rates but if you use more energy you pay more, it's as simple as that. The cap isn't an all your can eat deal. 
    If you have accurate consumption details then speak to BG and get them updated. I'd also suggest taking regular meter readings so you can keep on top of it.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • DouglasS
    DouglasS Posts: 8 Forumite
    Eighth Anniversary First Post Combo Breaker
    MWT said:
    The cap is just on the amount they can charge on a variable tariff for a specific consumption level, it is not an absolute cap on the level of a bills.
    Ignore that though it is a distraction.
    First check that you are still on the variable tariff that you were first put on when you transferred to BG, and that you have not somehow been moved to a fixed tariff...
    Then work out your own actual use over the last year (kWh) and raise a complaint with BG if that actual use is very different to the use they are predicting.
    Thanks. Certainly, I've got photographic evidence of usage (Meters, with exif Data) and ther usage of both utilities. BG are using figures way off from my normal usage.

    We don't seem to use a lot of gas (We got an eco-boiler a couple of years back, and "Heat what we use") - but BG are trying to charge us for three times the amount we use. If anything, they've slightly underestimated the Electricity, but it still doesn't come anywhere near £3700. By my reckoning (Excel) - we should be paying nearer to £180pm, not £360.

    ALSO. Something I just thought of. Should Oct-April be charged at this "higher" rate? Or at the tarrif I was on?

    TIA.
  • pochase
    pochase Posts: 3,449 Forumite
    1,000 Posts Third Anniversary Name Dropper
    Have you submitted regular meter readings to BG? Without them they will just estimate your energy use.

    What tariff have you been put on? Without you doing anything they can only put you on the standard variable tariff which is the capped tariff.

    Depending on the tariff you were on with your old supplier your rates will have increased when you joined BG, and possibly a second time in October when the CAP increased. 

    If I understand correctly you also did not pay anything to BG for the last months, so of course they will add this debt to the new direct debit.

    Can you let us know what you used since you joined BG and at what rates you were charged if you have already received a bill?


  • QrizB
    QrizB Posts: 18,370 Forumite
    10,000 Posts Fourth Anniversary Photogenic Name Dropper
    DouglasS said:
    ALSO. Something I just thought of. Should Oct-April be charged at this "higher" rate? Or at the tarrif I was on?
    October 2021 to end-March 2022 should have been charged at the capped rate that was applicable then (link in my signature), roughly 4p/kWh for gas and 21p/kWh for electricity. April to end-September 2022 will be charged at the new capped rate (other link in my sig), roughly 7.5p/kWh for gas and 28p/kWh for electricity.
    N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Vodafone BB / iD mobile. Ripple Kirk Hill member.
    2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 34 MWh generated, long-term average 2.6 Os.
    Not exactly back from my break, but dipping in and out of the forum.
    Ofgem cap table, Ofgem cap explainer. Economy 7 cap explainer. Gas vs E7 vs peak elec heating costs, Best kettle!
  • MWT
    MWT Posts: 10,273 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    edited 13 April 2022 at 8:35PM
    DouglasS said:
    We don't seem to use a lot of gas (We got an eco-boiler a couple of years back, and "Heat what we use") - but BG are trying to charge us for three times the amount we use...
    3 is kind of a magic number on here in relation to gas as a regrettably frequent problem we see is when the supplier believes you have an older imperial gas meter which measures in cubic feet (ft3) but you actually have a metric meter that measures in cubic metres (m3) with the result that the supplier believes you are using 2.83x the actual usage.
    Can you just take a look at a recent bill and you meter and make sure they are both using the same units?
    If you are unsure on the bill, just check the number of units and what that was converted to in terms of kWh...

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