Three questions about caps and suppliers

sienew

valiant24 said:

[Deleted User] said:

valiant24 said:

Thank you for pointing this out.  I am scared to go DD and think, when the bills go ballistic, I'll be in a stronger position to get an affordable payment plan from BG if I owe them a large amount of money than I will if they just help themselves to whatever they fancy each month. I think it's worth paying a little extra to retain that leverage.

You plan to go into a large amount of debt because that will give *you* the leverage?

Sure!  Owe the bank £100 - you've got a problem.  Owe the bank £1,000,000 - they've got a problem! ;-)

Or they'll put you on a prepayment meter and things will be much worse for you.

[Deleted User]

valiant24 said:

Could you possibly explain the 58/42 thing?  For example, in the South West Direct Debit example above. 33.09 and 17.83 are not in that proportion.

It's not cost, it's usage.  58% of electricity used at day rate, 42% at night rate, with the total price capped based on typical usage.  Make the day rate higher and you need to make the night rate lower.

valiant24

[Deleted User] said:

valiant24 said:

Could you possibly explain the 58/42 thing?  For example, in the South West Direct Debit example above. 33.09 and 17.83 are not in that proportion.

It's not cost, it's usage.  58% of electricity used at day rate, 42% at night rate, with the total price capped based on typical usage.  Make the day rate higher and you need to make the night rate lower.

Night usage is about 75% of my total usage as measured by kWhs.

valiant24

sienew said:

valiant24 said:

[Deleted User] said:

valiant24 said:

Thank you for pointing this out.  I am scared to go DD and think, when the bills go ballistic, I'll be in a stronger position to get an affordable payment plan from BG if I owe them a large amount of money than I will if they just help themselves to whatever they fancy each month. I think it's worth paying a little extra to retain that leverage.

You plan to go into a large amount of debt because that will give *you* the leverage?

Sure!  Owe the bank £100 - you've got a problem.  Owe the bank £1,000,000 - they've got a problem! ;-)

Or they'll put you on a prepayment meter and things will be much worse for you.

Obviously I won't let it get to that stage!

[Deleted User]

valiant24 said:

[Deleted User] said:

valiant24 said:

Could you possibly explain the 58/42 thing?  For example, in the South West Direct Debit example above. 33.09 and 17.83 are not in that proportion.

It's not cost, it's usage.  58% of electricity used at day rate, 42% at night rate, with the total price capped based on typical usage.  Make the day rate higher and you need to make the night rate lower.

Night usage is about 75% of my total usage as measured by kWhs.

But they don't set the unit rates based on your usage.

markin

So extend a rad into the kitchen or use an electric heater only when your in that room.


The current cap of 28p will soon be 52p then 70p then 75p, Your looking at well Over £4K 

valiant24

[Deleted User] said:

Night usage is about 75% of my total usage as measured by kWhs.

But they don't set the unit rates based on your usage.

Of course not.  I don't believe I ever said they did!   What I would like to understand is: how can I find out what the cap for Day and Night rates is for my region.  If, as implied previously, there isn't an explicit cap for Day and Night, how can I ensure that BG do not unduly cane me given my high night usage.

valiant24

markin said:

So extend a rad into the kitchen or use an electric heater only when your in that room.


The current cap of 28p will soon be 52p then 70p then 75p, Your looking at well Over £4K 

And the rest I think!   You'll see from my original post that BG estimates my annual consumption as 6,980 kWh.  The last PHP bill, in Oct 2021, estimated it at 12,607!   Electric Agas are thirsty.

MWT

valiant24 said:

Of course not.  I don't believe I ever said they did!   What I would like to understand is: how can I find out what the cap for Day and Night rates is for my region.  If, as implied previously, there isn't an explicit cap for Day and Night, how can I ensure that BG do not unduly cane me given my high night usage.

There is an explicit cap, it is set using  3100kWh, split 52/48% (day/night) and multiplied by the respective rates.

So you can't state a cap for the individual day/night rates, only in the specific combination of those rates split as described above...

So if you compare all the different suppliers E7 rates you will find they all come in just below the cap when you use 3100kWh split as described above, but you will find that some are more favourable to those with more than 42% night use, and others less so.

So if you are a high night user you are looking for a supplier with a lower night rate, but the cap prevents the supplier from unduly increasing the day rate as they would break the cap if they did...  

jimjames

Northern_Wanderer said:

I know you aren't asking about this, but I see that you are paying cash/ cheque rates. Paying by direct debit would give you the benefit of slightly reduced rates as you can see in pochase's grid.

Although the percentage isn't big when the annual bills are as big as they are now the "slightly reduced rates" are actually quite a significant saving which could be as much as £350 depending on usage.