Energy price cap freeze on a fixed tariff

[Deleted User]

northernsparky said:

[Deleted User] said:

PeteHl said:

Just seen the new capped rates from October with govt subsidy. Less than a tenth of a penny more per unit than my current fix I've been paying since June. Maybe cost me £150 over 3 months. Will my fix be reduced further. I doubt it.

Where have you seen these?  Nobody else seems to have been able to find them yet.

Have  you seen this ?

https://www.thesun.co.uk/money/19761289/important-update-energy-customers-fixed-deals/

It’s anyones guess how accurate their information is

No I hadn't, that's new.  Looks like a similar estimated calculation to that we've made on here.  Based off their numbers, it's not a straight 50/50 split of cap between gas and electricity, which is the first time we've seen that anywhere about the new cap.

mmmmikey

It will be interesting to see if the same figures are reported in other papers over the next few hours or overnight. If The Sun is correct then standing charges will stay the same, gas prices will go up by 50%ish and electricty prices by 25%ish.

[Deleted User]

mmmmikey said:

It will be interesting to see if the same figures are reported in other papers over the next few hours or overnight. If The Sun is correct then standing charges will stay the same, gas prices will go up by 50%ish and electricty prices by 25%ish.

Which? have also posted:

Electricity: 34p per kWh with a standing charge of 46p per day
Gas: 10.3p per kWh with a standing charge of 28p per day

michaels

[Deleted User] said:

mmmmikey said:

It will be interesting to see if the same figures are reported in other papers over the next few hours or overnight. If The Sun is correct then standing charges will stay the same, gas prices will go up by 50%ish and electricty prices by 25%ish.

Which? have also posted:

Electricity: 34p per kWh with a standing charge of 46p per day
Gas: 10.3p per kWh with a standing charge of 28p per day

That calc is based on keeping the price cap SC and splitting the rest 50-50 between gas and electric.  It means a slightly bigger discount off electric than gas compared to the cap.

mmmmikey

The same figures are quoted by Which here:

https://www.which.co.uk/news/article/liz-trusss-energy-guarantee-puts-price-cap-at-2500-for-a-typical-household-for-two-years-calculate-your-new-bills-aitQB9G0bkD5

A fairly definitive statement "The new unit rates (for direct debit customers) will be an average of:"

Not some wishy-washy statement with loads of caveats. So I wonder if this is actually what ofgem is going to do?

michaels

Ultrasonic said:

mmmmikey said:

The same figures are quoted by Which here:

https://www.which.co.uk/news/article/liz-trusss-energy-guarantee-puts-price-cap-at-2500-for-a-typical-household-for-two-years-calculate-your-new-bills-aitQB9G0bkD5

A fairly definitive statement "The new unit rates (for direct debit customers) will be an average of:"

Not some wishy-washy statement with loads of caveats. So I wonder if this is actually what ofgem is going to do?

If they're right that standing charges definitely won't change then it's a fairly straightforward calculation to do for each region. I guess from there they've just taken an average of the figures for all regions (rather than weighting it by customer numbers).

I think it's worth highlighting that even if it turns out they've published an accurate average those figures will mislead many due to the regional variations. 

Wouldn't dropping the green levies be expected to reduce the standing charges though?

Think I read somewhere that whilst the adjustment included moving the green/social levy onto general taxation it was too complicated to do that for October so the rate would be adjusted rather than the SC - the SC change would come later.

Ultrasonic

michaels said:

Ultrasonic said: 

Wouldn't dropping the green levies be expected to reduce the standing charges though?

Think I read somewhere that whilst the adjustment included moving the green/social levy onto general taxation it was too complicated to do that for October so the rate would be adjusted rather than the SC - the SC change would come later.

(I actually deleted my post above while you were replying as I realised the first part wasn't true. Had a tiring day!)

Was the green levy a fixed amount per customer? If it was then adjusting the SC would seem pretty straightforward. 

robbo990

If you’re on a fixed tariff

If you’re on a fixed tariff at a higher rate caused by recent energy price rises, your unit prices will be reduced by 17p/kWh for electricity and 4.2p/kWh for gas.

These unit prices have been passed to suppliers to ensure that they are used to calculate bills on time for 1 October.

Energy suppliers will adjust fixed tariffs automatically. Customers on fixed tariffs do not need to take any action to get the benefits of this scheme.

https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022

MWT

Keep in mind that these are still national average rates that are being stated and will vary according to region and payment method when applied to individual accounts.

Similarly there is no specific news on the cap for multi-rate tariffs like E7...

Chrysalis

I am now expecting my agile to not be affected, because of this caused by recent energy price rises.  As the 35p agile was brought out in Feb 2018.