Help with my arithmetic please !

iamnotasoldier

Hi - like many, I'm trying to weigh up if it's financial beneficial to take a fixed deal, given what is strongly being predicted for the next price cap rise - 42-46%. So when looking at MSE's advise, the rule of thumb is if you can get a fixed deal no more than 35% than the current cap. Now when I look at my supplier (E-On) they offering Next Online v14, which MSE says is 30% higher than current cap.... but I can't see where the 30% is coming from ! 

Current Price - Elec = 27.84p / KWh, Gas = 7.34p / KWh
Next v14 - Elec = 38.19p / KWh, Gas = 9.84p / KWh

So

E- 38.19p-27.84p = 10.35p => 10.35p/27.84p = 37.2% approx
G- 9.84p-7.34p = 2.5p => 2.5p/7.34p = 34.1% approx

So not seeing where the 30% comes from. When I look at the predicated the yearly cost I CAN get approx 30% ie

Current Cap yearly cost = £1550.81
Next v14 yearly cost = £2000.60
Diff = £449.79 => £449.79/£1550.81 = 29%

What am I missing ????

QrizB

iamnotasoldier said:

What am I missing ????

Standing charges. See example here.

iamnotasoldier

Yeah I thought that too. So the standing charges won't change - they are static -  so how do the increases even out to approx 30% ? I would have assumed that the increase would have by 30%+ as the both the elec+gas unit price is increasing. I need a math lesson in percentages I think !  

iamnotasoldier

Cheers for the link ! Explains a lot. 

QrizB

iamnotasoldier said:

Yeah I thought that too. So the standing charges won't change - they are static -  so how do the increases even out to approx 30% ?

If you follow the link, you'll see a worked example.

I can't do the same for you since you've only provided 1/3rd of the info, but the maths isn't any more complicated than what you've already done. Plug your numbers in, turn the handle and hopefully you'll get the same annual costs that your energy co has quoted.

iamnotasoldier

Yeah thanks for the worked example - I will pump my numbers in & calculate, though I suspect it will come out at the 29-30% I see in the annual costs.