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October price cap electricity cost per kwh

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  • TheNickster
    TheNickster Posts: 4,062 Forumite
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    edited 22 August 2022 at 3:26PM
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    From Cornwall Insight:

    Predicted Default Tariff Price cap Q4 forecasts, Per Unit Cost and Standing Charge including VAT (dual fuel, direct debit customer, national average figures)

    Q4 (Oct-Dec 2022)ElectricityGas
    Standing Charge (£/day)0.460.28
    Per Unit Costs (p/kWh)52.0914.76

    Source: Cornwall Insight

    Cornwall Insight release final predictions for October’s Price Cap (cornwall-insight.com)

    Do not be fooled into believing that this society cannot be made fairer because hard work isn't necessarily all it takes.
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  • savers_united
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    I’m being probably over simplistic here but, whilst Governments talk about handouts, tax breaks etc etc, has ANYONE ever looked at this clearly unsustainable increasing of the “Price cap” it seems that the big Corporations are just blatantly “Making hay while the sun shines” at the expense of Businesses and families, how long and how far do they seriously think they can keep lifting this?

    That's gonna be the biggest problem isn't it. I've read the numbers I know I can't afford them. Simple as that. A person with greater means maybe can afford them but they will no longer have haircuts, clothes, cafe, meals out, theatre. It affects everything and everyone. I pay 9.10 for after-school club and 5.80 for breakfast club x 3 children x 4 days. How much is school going to need to increase that to in order to afford the heating to run the club and pay the wage increase the staff. At what point will schools turn the heating on and off. Care homes, hospitals, factories. Its gonna be a long winter. Let's hope it's a mild one 
    Those ASC prices ain't too bad, around our way it's anything from £12.50-£15.50, but yes with rising energy costs alot of businesses will not survive unless they pass on the costs. But its a time when customers will simply not have the disposable income to pay these higher prices.

    Most tradesmen I know are stilling doing well, with alot booked up until November due to the backlog of work they are working through,, when their work dries up then you know things are getting bad as everyone likes to spend on their houses. 
  • michaels
    michaels Posts: 28,200 Forumite
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    wild666 said:
    Could their be a drop in average usage after October as some people will be turning off most appliances at the wall socket either now or from October? If usage of electric and gas drops then will suppliers want to increase the kWh & SC prices so they keep the same amount of money as with a higher average usage figure?

    Will be interesting as the suppliers will have hedged/bought forward enough for their normal demand, if demand falls by say 20% below normal they will have an excess on which they may make a killing if spot prices are higher than what they paid for it or alternatively lose a fortune if spot prices fall below the hedge price....
    I think....
  • QrizB
    QrizB Posts: 13,822 Forumite
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    My six month gym membership for 99 pounds is looking promising to pay for my showers. Unsure how I will shower the kids!
    Stack them up in a trench coat?
    I’m being probably over simplistic here but, whilst Governments talk about handouts, tax breaks etc etc, has ANYONE ever looked at this clearly unsustainable increasing of the “Price cap” it seems that the big Corporations are just blatantly “Making hay while the sun shines” at the expense of Businesses and families, how long and how far do they seriously think they can keep lifting this?
    Energy supply companies are making around 2% per customer in profit (EBIT) when selling at the cap.
    The profits are being made by the big oil & gas extraction companies - Saudi Aramco, Petro China, Exxon Mobil and the like - over which the UK government has very little influence. (Saudi Aramco's revenues, for example, are larger than the entire UK tax revenue.)
    If the gov't was to subsidise domestic energy prices at Winter 2021 prices, when the cap was about £1300, the cost would be around £2300 per household - and with 25 million households, that's £32.5 billion for the year. You'd need to add 5p to basic rate income tax (ie. increase from 20% to 25%) to cover it.
    wild666 said:
    If usage of electric and gas drops then will suppliers want to increase the kWh & SC prices so they keep the same amount of money as with a higher average usage figure?
    That isn't how it works.
    If demand falls, prices will fall too as the grid won't have to buy energy from the most expensive generators.

    N. Hampshire, he/him. Octopus Go elec & Tracker gas / Shell BB / Lyca mobi. Ripple Kirk Hill member.
    2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 30MWh generated, long-term average 2.6 Os.
    Taking a break, hope to be back eventually.
    Ofgem cap table, Ofgem cap explainer. Economy 7 cap explainer. Gas vs E7 vs peak elec heating costs.
  • NeverendingDMP
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    I’m being probably over simplistic here but, whilst Governments talk about handouts, tax breaks etc etc, has ANYONE ever looked at this clearly unsustainable increasing of the “Price cap” it seems that the big Corporations are just blatantly “Making hay while the sun shines” at the expense of Businesses and families, how long and how far do they seriously think they can keep lifting this?

    That's gonna be the biggest problem isn't it. I've read the numbers I know I can't afford them. Simple as that. A person with greater means maybe can afford them but they will no longer have haircuts, clothes, cafe, meals out, theatre. It affects everything and everyone. I pay 9.10 for after-school club and 5.80 for breakfast club x 3 children x 4 days. How much is school going to need to increase that to in order to afford the heating to run the club and pay the wage increase the staff. At what point will schools turn the heating on and off. Care homes, hospitals, factories. Its gonna be a long winter. Let's hope it's a mild one 
    Those ASC prices ain't too bad, around our way it's anything from £12.50-£15.50, but yes with rising energy costs alot of businesses will not survive unless they pass on the costs. But its a time when customers will simply not have the disposable income to pay these higher prices.

    Most tradesmen I know are stilling doing well, with alot booked up until November due to the backlog of work they are working through,, when their work dries up then you know things are getting bad as everyone likes to spend on their houses. 
    I don't fancy paying those prices for wraparound. I thought ours was bad. Anymore and I will be paying to work.  Hopefully it will be manageable and everyone will muddle through.
    Jan 18 Joint debts 35,213 - March 24 15.5k
    Mortgage Jan 18- 77224 Dec 23- just under 69k
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