Current Price Cap (as of April 2022)

[Deleted User]

The general consenus appears to be not to fix if the rate is 25% more than the current typical price cap of £1971 per year detailed in the latest MSE Newsletter of May 4.

(As a side note; the use of the word 'typical' is thrown around way too much nowadays - what really is typical?!)

Would it be reasonable to assume that you could apply the same principal to individual Units and Daily Standing Charge?

For example:

If the rate is 0.25p, then adding 25% on top would equal a total of 0.3125p (i.e., 0.25p plus 0.0625p).

So in principal, you should be looking at a tariff of roughly no more than 0.31 to 0.32p per unit?

Mstty

Yes your example is correct. The standing charge of course needs checking as well as fixed rates can increase this as well as the kWh not being bound by the price cap.

If you know your yearly kWh usage and have an idea of what you think may happen with the price cap in October you are half way there to gambling on the energy market.

Place your bets please!

Gerry1

Deleted_User said:

So in principle, you should be looking at a tariff of roughly no more than 0.31 to 0.32p per unit?

You need to get your pounds and pence sorted out !

Whether it's the daily standing charge or the cost per kWh, it certainly won't be less than a penny.

The answer is to compare the increase in the whole bill for your annual usage, based on actual meter readings.  If you use 25,000kWh per year and the kWh price goes up 1% you won't care if the daily charge goes up by 50%.

pochase

You should also always consider for how long a fix is. The 25% for a 12 months fix is very different to 25% for a 24 months fix.

Also the exit fee is something to consider. 

[Deleted User]

Gerry1 said:

Deleted_User said:

So in principle, you should be looking at a tariff of roughly no more than 0.31 to 0.32p per unit?

You need to get your pounds and pence sorted out !

Whether it's the daily standing charge or the cost per kWh, it certainly won't be less than a penny.

The answer is to compare the increase in the whole bill for your annual usage, based on actual meter readings.  If you use 25,000kWh per year and the kWh price goes up 1% you won't care if the daily charge goes up by 50%.

Just because Energy Suppliers decide to show pence with two or three decimal places (i.e., 31.12p or 31.123p) does not make my example any different - 31.12p is still the same as 0.31p in nomal everyday pounds and pence!

[Deleted User]

pochase said:

You should also always consider for how long a fix is. The 25% for a 12 months fix is very different to 25% for a 24 months fix.

Also the exit fee is something to consider. 

Certainly worth considering, but not sure if anyone would really want to fix for 24 months in this day and age

MWT

Deleted_User said:

Just because Energy Suppliers decide to show pence with two or three decimal places (i.e., 31.12p or 31.123p) does not make my example any different - 31.12p is still the same as 0.31p in nomal everyday pounds and pence!

Just being pedantic, but Gerry isn't wrong...

31.12p = £0.3112. or £0.31 when rounded ... 0.31p or 0.3112p is 100 times smaller than the first two...

k_man

MWT said:

Deleted_User said:

Just because Energy Suppliers decide to show pence with two or three decimal places (i.e., 31.12p or 31.123p) does not make my example any different - 31.12p is still the same as 0.31p in nomal everyday pounds and pence!

Just being pedantic, but Gerry isn't wrong...

31.12p = £0.3112. or £0.31 when rounded ... 0.31p or 0.3112p is 100 times smaller than the first two...

That's being not pedantic, it is being been accurate.

0.31p is just under 1/3rd of 1p
It is not 31p (£0.31)

victor2

Deleted_User said:

pochase said:

You should also always consider for how long a fix is. The 25% for a 12 months fix is very different to 25% for a 24 months fix.

Also the exit fee is something to consider. 

Certainly worth considering, but not sure if anyone would really want to fix for 24 months in this day and age

I took on a 2 year fix last September. I'm already on unbeatable rates and there's no exit fee should things miraculously turn around.

Not sure if I'd take one now though.

Edit:

The "principle" in your OP of applying x% to the standing charge and rate doesn't reflect reality. The April increase on one account I manage was 87% on electricity SC and 37% on the rate, then 4% on the gas SC and 85% on its rate.

Look at the total annual cost for the amount of energy you use and compare that between fixes and current rates. Longer fixes and exit fees (which seem to be getting bigger) make it all the more difficult to compare and increase the gamble you'd be taking.

MWT

k_man said:

That's being not pedantic, it is been accurate.

Only to the extent that I understood what was intended, but yes, it was entirely inaccurate to present it that way.

Much the same as the kW vs kWh mistakes that occur with great regularity.

They are, unfortunately two very different things, but I can usually work out which is intended from the context, so I don't try to correct them in every case any more than I try to correct spelling errors and typos 'been' vs 'being' for example

k_man

MWT said:

k_man said:

That's being not pedantic, it is been accurate.

Only to the extent that I understood what was intended, but yes, it was entirely inaccurate to present it that way.

Much the same as the kW vs kWh mistakes that occur with great regularity.

They are, unfortunately two very different things, but I can usually work out which is intended from the context, so I don't try to correct them in every case any more than I try to correct spelling errors and typos 'been' vs 'being' for example

Indeed, that would just be petty 😉