October price cap electricity cost per kwh

nekr0mantik

spot1034 said:

nekr0mantik said:

Wow so all of 2023 we will have increased charges. Does anyone think it's very unlikely prices will drop more next year and the prediction is usually accurate?

I think it will depend on what the prospects are looking forward. If the Russian situation has stabilised a bit (I'm thinking Putin might no longer be there) and politicians in the west can get their act together and be going all out to bring new supplies on line as rapidly as possible, that alone should have a calming effect on markets even if we are still some way from actually achieving that goal. Markets always hate uncertainty, and there's a good dose of that in the present energy market.

I suppose that if forward pricing into 2024 is at lower levels by this time next year, that might be an incentive for larger suppliers to buy at those prices and offer slightly more reasonable longer term fixed deals that will be attractive to many who  are coming to the end of fixes they've just started now.

Yeah I'm hoping the Ukraine and Russia situation gets little bit better so there is hope even though it won't happen right away.

Mythek1

I'm with Eon and last night they were offering 51.6p per KWH fixed for 12m. 

This morning that had risen to 53.17p.

I'm currently on 28.41p per KWH SVR 

It's like playing Russian roulette. 🙄

pochase

Russian roulette without empty chambers. It always hurts no matter what you do.

ariarnia

[Deleted User] said:

Chrysalis:

Did ofgem ever say how long the SC increases for the company liquidations would last for or is it perpetual?

Analysts are suggesting that the final bill to move Bulb Energy on will be in excess of £2Bn. Interest has waned to just one potential purchaser, Octopus. Octopus is on record as saying that it will need at least £1Bn from the Government to takeover Bulb’s customer base. Will these costs be passed on to all energy consumers?

suggestion was the 1bn would be a 'loan' from the government to let octopus hedge for the next winter so via taxation would be more sensible to my mind. from the treasury and then back to the treasury 

pochase

You are forgetting about the cost already covered by the government up to now.

fergie_

Spoonie_Turtle said:

QrizB said:

pochase said:

But they do. This is the one Martin was referring to last week, and it is broken down.
https://www.cornwall-insight.com/press/cornwall-insight-comments-on-its-january-default-tariff-cap-forecast-rising-to-3000-for-a-typical-user/
Maybe another one of let's stick with just one figure like the 54%? This single figures are much nicer for headlines.

Here's a table that breaks those CI forecasts down, with an assumed SC per fuel similar to the current one:

	Q4 2022	Q1 2023	Q2 2023	Q3 2023
Gas SC £	100	100	100	100
Gas price £	1496.11	1503.45	1311.76	1270.19
Gas /kWh p	12.47	12.53	10.93	10.58
Elec SC £	170	170	170	170
Elec price £	1214.52	1229.75	1176.57	1145.53
Elec /kWh p	41.88	42.41	40.57	39.5

Hope this helps.

When I was doing the calculations for stick or fix, I was using 45p for electricity based on an increase of ~51%.  If your breakdown there is anywhere near accurate, we would have overpaid these months then not saved anything from a fix.  (We haven't done anything yet, still on the SVT.)

Based on those figures, that's both electricity and gas near enough doubling in one quarter, compared to now. I'm not even going to stay how much it has gone up since a couple of years ago.

Surely someone is going to step in to stop that happening?

wild666

si_74 said:

Whether the standing charge is a factor in deciding what to do or not will largely be dependant on usage. I don't know whether it will go up, down or stay that same. I am a higher end user of energy it seems and for me that current standing charges (SVT) make up just over 6% of my bill so it is the unit rate that is by far the majority of the bill. I am sure many will be the same but maybe haven't realised.

I think the SC should just cover the costs of the network charges and not as some think some of the costs of the kWh usage. Lowering the SC would help out low users. 
If some of the SC's are to cover the costs incurred from companies going under then IMHO there should be a separate charge and not adding the price to the electric SC. Once a large increase is added to an SC it would become difficult to suddenly reduce the SC by the amount that they added to an SC for all the money to be recovered by companies who went under.

wild666

"Did ofgem ever say how long the SC increases for the company liquidations would last for or is it perpetual?"

Once implemented the increased SC for electric will continue, so 48p SC might become 51p in October and 53p in January 

GingerTim

wild666 said:

"Did ofgem ever say how long the SC increases for the company liquidations would last for or is it perpetual?"

Once implemented the increased SC for electric will continue, so 48p SC might become 51p in October and 53p in January 

Do you have any evidence for this?

pochase

As far as I remember it was 2 years for the cost of the SOLR process.

This might increase if the cost for Bulb is added to this. Either amount or time the higher standing charge is billed.