£2980 New October Price Cap

MattMattMattUK

EssexHebridean said:

The thing that really frightens me right now is "what if" we have a really cold winter - beast-from-the-east style. I'm going to suggest that the majority of regular posters on this board (note I said "majority" and "regular" - far from suggesting that this is an across the board statement) are better fixed than many to deal with another big increase - partly because we are likely to be more clued up about where things are going, and partly because we are also more on the ball with actual cost of use,

I agree, most of the regulars will have the financial sense to be planning ahead and many will also be aware of how to take mitigating action beyond just cutting back usage. We have had a couple of mild winters and with a cold one and the increased costs people could find that their bills end up being 5+ times more that previous winters. 

EssexHebridean said:

but there is a huge swathe of folk out there who simply can't rob Peter to pay Paul any further to stand another significant jump in energy costs.

This group will be split in three, those who are on credit meters who will run up debts aware of what they are doing, but feeling that they have no other choice, whose on credit meters who run up debts ignorant of what they are doing until the large energy bill arrives and those on pre-pay meters who see their energy shut off when they use all the credit and emergency credit.

EssexHebridean said:

A really cold winter though could genuinely see people freezing in their homes - not because they don't want to turn the heating on, but because they simply can't. 

I feel this part is slightly overblown. I agree that for many a cold winter might be an unpleasant prospect but it does take quite a lot to drop into hypothermia territory. In most of the UK (Highlands and Islands excepted) being indoors, in bed with a thick duvet is enough to remove the risk of death from hypothermia, with a few extra layers it can be more comfortable. I know that is far from ideal and for those people I cannot see it being a pleasant winter, but that is why things like the "Heat the person, not the home" initiative on here is so important as whilst we cannot stop the winter being cold for some, it can certainly alleviate some of the unpleasantness and remove the risk of hypothermia. 

EssexHebridean

The main risk of people becoming hypothermic in the UK is because they simply aren't aware of the risk of that happening I think - and in many cases because they assume it can't possibly happen to them as - at least in part - they feel it's not something that "happens over here". Hopefully as winter approaches more will be done to make people aware that it can very definitely be a risk, and what the signs to watch for are. I don't imagine it will be an everyday occurrence, absolutely, but a seriously cold snap over winter which creeps in gradually (meaning people are less aware of it getting steadily colder and colder) and then lingers about for several weeks or months could well give significant issues. Totally agree about "Heat the person, not the home" - and we can probably all play our par in helping that to become more widely known beyond the bounds of "MSE World" too. 

Chrysalis

Great headline OP

Wonder how many MSE people now think if their annual cost is higher than £2980 the supplier is breaking the law?

Mstty

Chrysalis said:

Great headline OP

Wonder how many MSE people now think if their annual cost is higher than £2980 the supplier is breaking the law?

True, if I went with 51% it would be the same issue.

All you can eat £2980 buffet anyone🤣

wild666

I've just been on my balance forecast and it's saying I should pay £66.99 per month but I'm £293 in credit so increasing the DD is a big NO for me because the credit will offset and underpayment from the DD for at least 12 months. What they haven't factored in is the £400 from the government and the £150 disability payments that I and others will get plus any credit on the account. 

I don't expect my monthly bill to go up that much even after the predicted £2980 increase up from £1971 in April. With my current DD at £55 the October price of 42.3p and 11.15p with the same SC's my monthly usage will be just under £83 per month and I will have £550 from the government. There is no way I will use over £91.66 in electric and gas per month from October plus my £55 DD.  

Brebal

ic said:

I'm on Octopus's Avro tariff.  The loyalty fix they offer me at the moment represents a 47% increase - so I'd have to take increased prices through to October now, to save only 4% (over the whole year) through winter into next summer - I haven't cranked the numbers, but I'm sure I'd be a turkey voting for Christmas accepting that fix now.

Do you think it’s not a good idea?

I’m being offered that too. 

Moving from:

Elec 27.35 per KWH / 48.26 standing charge

To

39.18 and still 48.26

Gas 

7.28 and 27.22

To

11.23 and still 27.22

I don’t want to do it as it’s a £100 increase a month, on top of a £50 increase a few months ago. But was thinking it’s better to get fixed before it gets worse?? And there’s no exit fee.

Alnat1

Don't dither if you think it's right and can afford it, several have posted on here that fixes they were considering have disappeared fast and been replaced by ones with higher tariffs. 

Mstty

wild666 said:

I've just been on my balance forecast and it's saying I should pay £66.99 per month but I'm £293 in credit so increasing the DD is a big NO for me because the credit will offset and underpayment from the DD for at least 12 months. What they haven't factored in is the £400 from the government and the £150 disability payments that I and others will get plus any credit on the account. 

I don't expect my monthly bill to go up that much even after the predicted £2980 increase up from £1971 in April. With my current DD at £55 the October price of 42.3p and 11.15p with the same SC's my monthly usage will be just under £83 per month and I will have £550 from the government. There is no way I will use over £91.66 in electric and gas per month from October plus my £55 DD.  

You are known as a very low energy user though so not really the "average" Ofgem quote when they talk about price caps and percentage increases.

One further point the £150 doesn't have to go on your energy bills that will be paid direct. The only payment I believe goes direct on an energy bill is the £400 which will likely only be factored in after the fact with the way energy billing systems work.

pochase

Here is the Cornwall Insights forecast for the next year

JohnPo

Can someone help out by guesstimating the unit rates and standing charges for the forecast periods based on the Cornwall Insight figures? I know they vary by region but a best estimate would be most helpful.