GETTING YOUR GAS SUPPLY CAPPED

CAPDJPJFP757906

[Deleted User] said:

CAPDJPJFP757906 said:

[Deleted User] said:

Your post makes no sense: sorry. If you are paying £161 a month for gas then you are a significant gas user. DD payments are only payments on account from which ACTUAL charges are deducted.

Your supplier will charge you for removing the gas meter and capping the supply. You need to take this into account when you are sitting at home in the cold. There is also a reconnection cost if you decide to reverse your decision.

It's cost £106 to remove the meter. £106 to reverse it, many suppliers don't charge 

No matter how much gas I use, I will still be paying a minimum standard cost of £161 per month for gas, that I hardly use, so going forward my cost is always going to be a minimum of £322 per month for both gas and electric, I'm sure if I got my gas capped off,as I'd say that already use 90% electricity Inthe house, I'd be better of, me taking into account the extra I will use on the electricity for use of heaters in the winter months

If you pay £161 a month for gas and you decide to not to use any then £(161x 12) less the annual standing charge will appear as a credit on your account. The supplier is not charging you £161 a month for gas. You only pay for the gas that you use at the agreed tariff price.

If you get rid of gas then any extra electricity that you use for heating; heating water etc will appear as an extra charge on your account. Given the difference in the kWh cost between gas and electricity you might be surprised how much this extra cost comes to. 

If your logic was sound, then people would be lining up to get rid of their gas boilers in favour of a heat pump. Even with £5k assistance from the Government the take up has been very low: why, because of the high cost of electricity.

This appeared on another forum a little earlier:

Capped, by s not removing the pipe work, why would you want to remove the pipe work, they remove the gas meter that's all, your looking into this in far to much in depth go on ofgem website then send me the screen shot on gas services being capped, not removed

CAPDJPJFP757906

pochase said:

You are paying a standing charge of about £10 for gas, not £161.

The other £151 you are paying every month, because you use that much gas in winter for heating. You are a heavy gas user the way you describe it, 12 x 151 = £1812 is more than 24000KWh, double the average used by Ofgem for the cap calculations.

Is your usage of gas really exactly half of the monthly fixed direct debit, or are you just making it up that if you have gas and electricity the cost is half and half?

Btw. Your direct debit will go up by another 80% in October.

What is your annual usage for electricity and gas in KWh?

It can't go up if I'm on fixed, these prices are based on standard rates, that's why there is so much standard deals on the market not fixed, because suppliers no price rates are going in up and up so they won't offer fixed rates, the capped price was there to help consumers, however due to the costs it's impossible to keep the capped rate, otherwise these smaller companies won't exist, price capped of 80% is based on standard rates only, think you need to look into your issue that everyone will pay the80% capped first, fixed means fixed rate, it's simple capped means it can't go above, but unfortunately cause the costs of the gas prices they've had to move it upto 80% capped it's trying to give supiers and customer breathing space

daveyjp

Before taking the plunge turn off all your gas appliances and isolate the supply at the meter, just pay the standing charge and see how you get on between now and Christmas.

CAPDJPJFP757906

Thanks for your simple and straightforward answer, people get so much over and into something on a question, but thanks for your answer, how can I isolate the gas is it legal, I have no gas appliances, it's just the boiler and that's switch off

pochase

The minimum payment is not £322. The £322 is their estimate what the cost of the energy you will be using is over a 12 months period. 

During summer you use less energy, especially gas and in winter you use more, again especially gas.

If you don't use any gas at all, you will have to pay only the standing charge, which is currently 27.22p per day, less than £100 per year.

The estimated gas rates for October is 14.79p per KWh, while the price for electricity is 52.05p, that means electricity is 3.52 times as expensive as gas. A KWh heat is almost the same, no matter if you use gas or electricity to generate it. Almost because a modern gas boiler has maybe 96% efficiency, while direct electricity has 100%.

Using electric radiator or panel heaters to heat you home is the most expensive way to heat, electricity is only an alternative if you have an ASHP, here you will get 2.5 to if you are lucky 3KWh heat from a KWh electricity.

CAPDJPJFP757906

pochase said:

The minimum payment is not £322. The £322 is their estimate what the cost of the energy you will be using is over a 12 months period. 

During summer you use less energy, especially gas and in winter you use more, again especially gas.

If you don't use any gas at all, you will have to pay only the standing charge, which is currently 27.22p per day, less than £100 per year.

The estimated gas rates for October is 14.79p per KWh, while the price for electricity is 52.05p, that means electricity is 3.52 times as expensive as gas. A KWh heat is almost the same, no matter if you use gas or electricity to generate it. Almost because a modern gas boiler has maybe 96% efficiency, while direct electricity has 100%.

Using electric radiator or panel heaters to heat you home is the most expensive way to heat, electricity is only an alternative if you have an ASHP, here you will get 2.5 to if you are lucky 3KWh heat from a KWh electricity.

My electricity fixed rate is 41.79 per kWh 

Gas is 13.25 kWh

So basically if the capped rates go up to 80% as suggested then further again start of the year it can go on and on cause there no limited because companies have to pass the cost over.

Anyway I think we've diverred away from my original question it was just to get people thoughts on my question.

But why is my minimum cost £322 per month, based on my last supplier i was paying £125 per month fixed rates, never went or below or above, so what your saying is since I've moved over that £322 should fluctuate depending on my usage, so why do I have to pay the minimum of £322

[Deleted User]

pochase said:

The minimum payment is not £322. The £322 is their estimate what the cost of the energy you will be using is over a 12 months period. 

During summer you use less energy, especially gas and in winter you use more, again especially gas.

If you don't use any gas at all, you will have to pay only the standing charge, which is currently 27.22p per day, less than £100 per year.

The estimated gas rates for October is 14.79p per KWh, while the price for electricity is 52.05p, that means electricity is 3.52 times as expensive as gas. A KWh heat is almost the same, no matter if you use gas or electricity to generate it. Almost because a modern gas boiler has maybe 96% efficiency, while direct electricity has 100%.

Using electric radiator or panel heaters to heat you home is the most expensive way to heat, electricity is only an alternative if you have an ASHP, here you will get 2.5 to if you are lucky 3KWh heat from a KWh electricity.

I think that we are all wasting our time. Unless the OP puts some flesh on the bones - that is, annual usage in kWh for both gas and electricity along with tariff details - then no one will know whether he is right or not.

Phlik

CAPDJPJFP757906 said:

Hi,

I've been thinking since I've just come out of a fixed energy package, I managed to get another fixed about 6 weeks ago, my payment like others have treble it's went from £125 to £322 per month for both gas and electric, however been thinking majority of my house is run on electricity, I only use the gas for heating and hot water (dishes), so my question I think I will save at least £100 if I get my gas capped off by my supplier, as effectively I'm paying £161 per month for my gas, gas that I hardly use, meaning when the colder months come and I use heaters which can be turned on and off as and when, I'm sure I will still be saving from my gas charge of £161 per month, what's people's thoughts on this?

You'll find out very quickly just how expensive electric heating is compared to gas central heating.

EssexHebridean

CAPDJPJFP757906 said:

[Deleted User] said:

CAPDJPJFP757906 said:

[Deleted User] said:

Your post makes no sense: sorry. If you are paying £161 a month for gas then you are a significant gas user. DD payments are only payments on account from which ACTUAL charges are deducted.

Your supplier will charge you for removing the gas meter and capping the supply. You need to take this into account when you are sitting at home in the cold. There is also a reconnection cost if you decide to reverse your decision.

It's cost £106 to remove the meter. £106 to reverse it, many suppliers don't charge 

No matter how much gas I use, I will still be paying a minimum standard cost of £161 per month for gas, that I hardly use, so going forward my cost is always going to be a minimum of £322 per month for both gas and electric, I'm sure if I got my gas capped off,as I'd say that already use 90% electricity Inthe house, I'd be better of, me taking into account the extra I will use on the electricity for use of heaters in the winter months

If you pay £161 a month for gas and you decide to not to use any then £(161x 12) less the annual standing charge will appear as a credit on your account. The supplier is not charging you £161 a month for gas. You only pay for the gas that you use at the agreed tariff price.

If you get rid of gas then any extra electricity that you use for heating; heating water etc will appear as an extra charge on your account. Given the difference in the kWh cost between gas and electricity you might be surprised how much this extra cost comes to. 

If your logic was sound, then people would be lining up to get rid of their gas boilers in favour of a heat pump. Even with £5k assistance from the Government the take up has been very low: why, because of the high cost of electricity.

This appeared on another forum a little earlier:

Capped, by s not removing the pipe work, why would you want to remove the pipe work, they remove the gas meter that's all, your looking into this in far to much in depth go on ofgem website then send me the screen shot on gas services being capped, not removed

That's their decision - not yours. If the supply company decides that the pipework needs removing, then that's what they will do, and yes, there will be a cost to you for that. 

CAPDJPJFP757906 said:

Thanks for your simple and straightforward answer, people get so much over and into something on a question, but thanks for your answer, how can I isolate the gas is it legal, I have no gas appliances, it's just the boiler and that's switch off

well there you go then - just leave that boiler turned off, you'll clock up no use on your gas between now and Christmas. Easy. Of course once the cold weather kicks in and you start needing heating, as has already been pointed out you will be paying the most enormous premium to heat your home using just electric. Once you DO start using the electric heating I'd suggest doing weekly meter readings so you get a really swift overview of quite how much it's going to cost you, it's safer that way than waiting until you get the enormous bill that will result! (And doing it this way means that once you learn how much it will cost you, you can also immediately turn the boiler back on and start heating your home using the rather more cost effective way you have installed, ready and waiting...) CAPDJPJFP757906 said:

pochase said:

You are paying a standing charge of about £10 for gas, not £161.

The other £151 you are paying every month, because you use that much gas in winter for heating. You are a heavy gas user the way you describe it, 12 x 151 = £1812 is more than 24000KWh, double the average used by Ofgem for the cap calculations.

Is your usage of gas really exactly half of the monthly fixed direct debit, or are you just making it up that if you have gas and electricity the cost is half and half?

Btw. Your direct debit will go up by another 80% in October.

What is your annual usage for electricity and gas in KWh?

It can't go up if I'm on fixed, these prices are based on standard rates, that's why there is so much standard deals on the market not fixed, because suppliers no price rates are going in up and up so they won't offer fixed rates, the capped price was there to help consumers, however due to the costs it's impossible to keep the capped rate, otherwise these smaller companies won't exist, price capped of 80% is based on standard rates only, think you need to look into your issue that everyone will pay the80% capped first, fixed means fixed rate, it's simple capped means it can't go above, but unfortunately cause the costs of the gas prices they've had to move it upto 80% capped it's trying to give supiers and customer breathing space

Your DD can indeed go up regardless of you being on a fixed rate. Your energy deal is not an "eat all you can option" - it's just that as has already been explained, the unit rate is fixed. Think of it this way. A well known supermarket advertises that it is selling apples for 20p each, and states that they will not be increasing the price of those apples until October 2023. You go in and buy an apple, and it costs you 20p - but if you go in and buy 10 apples, you pay £2 - yes? Energy is the same - the currently unit price you pay for electricity might be 20p a unit - but that is only for a single unit. the more of those units you use, the higher the cost. Your DD amount is set based on the amount they estimate that you will use across the next 12 months, at the current costs, and that in turn will be based on the amount you used over the previous 12 months from when they set the estimated use. 

Straight questions (which I am sure have also been asked previously in the thread)
- How much electricity have you used in the last 12 months?
- How much gas have you used in the last 12 months. 

si_74

CAPDJPJFP757906 said:

pochase said:

You are paying a standing charge of about £10 for gas, not £161.

The other £151 you are paying every month, because you use that much gas in winter for heating. You are a heavy gas user the way you describe it, 12 x 151 = £1812 is more than 24000KWh, double the average used by Ofgem for the cap calculations.

Is your usage of gas really exactly half of the monthly fixed direct debit, or are you just making it up that if you have gas and electricity the cost is half and half?

Btw. Your direct debit will go up by another 80% in October.

What is your annual usage for electricity and gas in KWh?

It can't go up if I'm on fixed, these prices are based on standard rates, that's why there is so much standard deals on the market not fixed, because suppliers no price rates are going in up and up so they won't offer fixed rates, the capped price was there to help consumers, however due to the costs it's impossible to keep the capped rate, otherwise these smaller companies won't exist, price capped of 80% is based on standard rates only, think you need to look into your issue that everyone will pay the80% capped first, fixed means fixed rate, it's simple capped means it can't go above, but unfortunately cause the costs of the gas prices they've had to move it upto 80% capped it's trying to give supiers and customer breathing space

I think a lot of your thoughts about how energy works are shared by many. There are lots of people on here that will offer you sound advice, backed up by numbers but I am afraid a lot of what you are saying about energy bills is just not the way it works.

Everyone is in a different situation depending on their overall usage and the split of this between gas and electric. I am almost certain that capping your gas would be a false economy, and cause problems should you wish to reconnect. The standing charge for gas is under £10/month on the SVT and this is probably not going to increase greatly (if at all) after Friday but obviously that is to be confirmed. So if you use zero gas then your annual charge will be no more than £120 for gas.

Your Direct Debit can change up or down depending on your usage. It is the unit price that is fixed...if you use more you pay more. The DD is simply a way of evening this out over a year, but you could be in debit or credit at the end of this period depending on the amount you use.

The percentage increases we all read about in the media are based on an average usage that is almost mythical, the figures that matter are your own usage and the unit rate.