What energy

timmo8

With the current price increases in energy, what energy prices are these based on. Is it just gas or just electric or a dual fuel increase. As I’m only on electric I’m just wondering if these big increases of 70% is effecting me with the costs shown. 

Robin9

I'm sorry but electric is also affected  - much of theelectric you get is generated by gas 

There are lots of %'s being banded around - don't assume anything.  It all depends what tariff you are on, when that fix ends and if you opt for another fix or SVT.

You need to do your own sums.

[Deleted User]

Both gas and electricity prices are increasing. In setting the price for electricity, the UK along with many other countries bases its electricity cost on the price of gas.  Today is a bright and breezy day in many parts of the UK and, as I post, 28.54% of our electricity is being generated using gas. Overnight when the wind doesn’t blow, the percentage can be as high as 50%. This policy is under review but we are unlikely to see any policy change for some years. The standing charge for electricity includes green taxes; the cost of SoLRs etc. SoLR costs have been very high as a result of the number of supplier failures.

pochase

Going from an average 28p electricity SVT today and 7.3p for gas, the predicted increase is 66% for electricity and 98.6% for gas.

This will be going further up in January and April.

So for you it will be "only" a 66% increase it seems.

moto50

It is hitting electric hard too - We are on a fixed rate dual fuel and they allowed us to transfer the rate to our new property that was single fuel. It has still leapt up in price though and we are still trying to find out why it has over doubled what we paid for both fuels before. They have stated that only the service charge is fixed, the price of the fuel, and your cost can go up and down. If that is true or not, I have no idea, I haven't got to the bottom of it yet. Do keep an eye on it though. 

pochase

The daily charge (standing charge) is absolutely fixed, there are only 365 days in a year.

For your energy use what is fixed is the price per unit (KWh). If you use more you pay more, if you pay less you pay less.

There is no "all you can eat" for energy.

What was your usage before and what is it now? And what is before? Before what?

gasmanalan

Buying cheap energy has been promoted by Martin. This encourages the suppliers to buy on short term contracts. Thus when the price goes up the business fails, they go bust. British Gas used to invest in long term, medium term and short term contracts. Which made them uncompetitive but had security of supply. Clearly long term contracts are more costly. They also invested in research stations, training and having humans in this country answering phones. The businesses who promoted buying at the cheapest price are partly responsible for creating the terrible situation we now find ourselves in. 

artyboy

gasmanalan said:

Buying cheap energy has been promoted by Martin. This encourages the suppliers to buy on short term contracts. Thus when the price goes up the business fails, they go bust. British Gas used to invest in long term, medium term and short term contracts. Which made them uncompetitive but had security of supply. Clearly long term contracts are more costly. They also invested in research stations, training and having humans in this country answering phones. The businesses who promoted buying at the cheapest price are partly responsible for creating the terrible situation we now find ourselves in. 

I think you're pointing your finger in the wrong direction. OFGEM allowed (under direction from the government) a very light touch regulation in terms of fiscal stability. Ostensibly that was to encourage comptetition/remove barriers to entry, but letting firms start up with minimal capital and without the requirement to hedge their long term commitments - well that was always going to turn out badly.

It's not unreasonable for a money saving site to be promoting good prices in an industry that's supposed to be well regulated... the fact that it wasn't doesn't lie at Martin's feet! 

MWT

gasmanalan said:

Buying cheap energy has been promoted by Martin. This encourages the suppliers to buy on short term contracts. Thus when the price goes up the business fails, they go bust. 

What caused the suppliers fail, for the most part, was selling 12 month fixed contracts without spending the necessary money to hedge the contracts they had sold.

That is nothing to do with Martin encouraging people to switch to cheaper fixed deals, and everything to do with selling something that could only be delivered if wholesale prices didn't increase...

Some suppliers gambled (with our money)  and lost (at our expense), some hedged and are still here...