Energy price cap - What is "average usage"

PMSG

The energy price cap is the maximum amount a utility company can charge an average customer in the UK per year for the amount of electricity and gas they use.
Does anyone know what gas and electricity usage is deemed to be used by an average customer by Ofgem when calculating the price cap? I have been through lots of FAQs but so far have not been able to find these usage figures. Asking Ofgem via their Twitter account was similarly unsuccessful.

Mstty

2900 kWh elec

12000 kWh gas

Source

https://severnwye.org.uk/articles/myth-busting-the-energy-price-cap-what-it-means-for-you/

locky123

I think they use 2,900kWh of electricity, 12,000kWh of gas as typical usage.

https://www.ofgem.gov.uk/publications/price-cap-increase-ps693-april

https://www.ofgem.gov.uk/sites/default/files/docs/2020/01/tdcvs_2020_decision_letter_0.pdf

https://www.ofgem.gov.uk/information-consumers/energy-advice-households/check-if-energy-price-cap-affects-you

QrizB

PMSG said:

The energy price cap is the maximum amount a utility company can charge an average customer in the UK per year for the amount of electricity and gas they use.
Does anyone know what gas and electricity usage is deemed to be used by an average customer by Ofgem when calculating the price cap? I have been through lots of FAQs but so far have not been able to find these usage figures. Asking Ofgem via their Twitter account was similarly unsuccessful.

I know you've had two accurate answers but there is a link to an explainer in my signature.

pochase

I think you will be much better off with the links in @Qrizb signature.

On top of the average use there is also an average region the family lives in for example, as standing charges and rates will be different depending where you live. 

Ultrasonic

From the perspective of an individual I'd argue that it's not desperately relevant what an 'average customer' may pay, but rather what they themselves pay.

[Deleted User]

Ultrasonic said:

From the perspective of an individual I'd argue that it's not desperately relevant what an 'average customer' may pay, but rather what they themselves pay.

I agree. Ofgem monitors Typical Domestic Consumption Values (TDCV)  and it updates the values on a periodic basis. The ‘problem’ is that the uniformed press latch on to such things as a 54% price increase as if it was gospel. It is hardly surprising when a consumer is faced with a gas cost increase of over 75% (from one Cap to the present one)  that this forum is filled with all sorts of unfounded accusations. Clearly, when consumers are coming off a ‘cheap’ one or 2 year fixed deal to either the Cap or a new fixed tariff, they can expect to see annual cost rises in excess of 100%.

MWT

Just take care if you look at any of the Ofgem source material as they use 3100kWh not 2900kWh for the calculations, but they require the suppliers to use 2900kWh for any of their published material.

Chrysalis

locky123 said:

I think they use 2,900kWh of electricity, 12,000kWh of gas as typical usage.

https://www.ofgem.gov.uk/publications/price-cap-increase-ps693-april

https://www.ofgem.gov.uk/sites/default/files/docs/2020/01/tdcvs_2020_decision_letter_0.pdf

https://www.ofgem.gov.uk/information-consumers/energy-advice-households/check-if-energy-price-cap-affects-you

Haha I completely break their average use metrics, my gas usage is very low.

It is good at least that those who understand unit prices etc, seem to be almost in universal agreement that Ofgem quoting average usage cost is a bad idea.

facade

Ultrasonic said:

From the perspective of an individual I'd argue that it's not desperately relevant what an 'average customer' may pay, but rather what they themselves pay.

As a Government department, OFGEM staff are skilled at manipulating figures to present them in what they consider the best light.

"54% increase" reads better than "100% increase in gas prices and electricity standing charges and a 33% increase in electricity prices" doesn't it?

Then it's fingers crossed that there will be some World Event to pin the blame on ( for rises that happened before the event) before the populace get the pitchforks & torches out!

pochase

I think a bigger issue is that the press concentrated their reporting on the nice "54%". It makes great headlines.

All the information on the real increases were available and and could have reported on. We are not talking about huge tables, a simple gas will increase by xx% to xx% depending on the region you live IF YOU ARE CURRENTLY ON A SVT and the same for electricity and standing charges.

That is the second big one, nobody made it clear that the increase only relates to SVT to SVT, and is much higher if you currently pay less due to being on a fixed tariff, it seems that many journalists did not even understand this.