Energy Price Guarantee (announced 8 Sep): initial reaction & questions

ariarnia

DAVEMCFC said:

Astria said:

DAVEMCFC said:

Green levy scrapped, but price still goes up? How does that work?

It would have gone up more if the green levy hadn't have been scrapped.

But this is a govt imposed cap, it is not being set by market forces. They could have held it down to 2k a year, or reduced it to below the April level, to reflect the scrapping of green levies. but they chose not to

its supposed to be going up to 3549 so the government is already paying the difference of 1000 per household to cap it at 2500.  caping at 2000 would make it cost 1500 per household. plus the extra cash that we're all getting (and the extra for the most vulnerable) maybe they just couldnt afford to subside by that much?

MSE_James

Martin's instant summary is now also here on MSE: 

https://www.moneysavingexpert.com/news/2022/09/energy-bills-price-freeze-cost-of-living-government-liz-truss-/

The link above will be updated with further details through the day.

[Deleted User]

Whilst I welcome the announcement, the 'average useage' is 2900 kWh electricity and 12000 gas kWh.  My useage is 227% higher for electricity (due to medical equipment) and 153% higher for gas.  I know many people who mistakenly believe that the £2500 cap is for unlimited useage, and this is never fully explained in briefings and in the news. 

In order to work out my own costs, it's important to know the price per kWh (as well as standing charges).  Presumably VAT is on top?  Are standing charges on top or included in the cap? Does anyone know when this info will be available?

xzibit

Janie2008 said:

xzibit said:

Janie2008 said:

My fix is 11% above the April cap so I should be ok with the £2500 average.

Mine is 89% above. I'm just about to request a move back to the SVT.

I had £200 exit fees so glad I don't have to. How about you?

No exit fees luckily, unless I change supplier. Which is almost impossible at the moment anyway. However, didn't Martin report there will be no exit fees to change back to the SVT?

GasPants

A policy to appeal to the pampered middle classes who already have the wherewithal to ride out this storm.
It does nothing for people who are already struggling.

ariarnia

Deleted_User said:

Whilst I welcome the announcement, the 'average useage' is 2900 kWh electricity and 12000 gas kWh.  My useage is 227% higher for electricity (due to medical equipment) and 153% higher for gas.  I know many people who mistakenly believe that the £2500 cap is for unlimited useage, and this is never fully explained in briefings and in the news. 

In order to work out my own costs, it's important to know the price per kWh (as well as standing charges).  Presumably VAT is on top?  Are standing charges on top or included in the cap? Does anyone know when this info will be available?

standing charges are normally included in the cap. 

Effician

Am i right in thinking that the removal of the green levy will also apply to those on a fix , this should mean a small reduction in fixed rate.

molerat

Earlier this week I think people were looking at  around 10p for gas and 35p for electric along with the previously announced October standing charges.  I expect OFGEM will have had the information ahead so later today or tomorrow.

maisie_cat

I've just recalculated comparing our fix based on 34.7p and we'll be £27 worse off between now and end Jun 23 on top of the £60 extra it's cost us since May over SVR. However the exit fee is £100 so may as well stay where we are and not fix again.

caveman38

maisie_cat said:

I've just recalculated comparing our fix based on 34.7p and we'll be £27 worse off between now and end Jun 23 on top of the £60 extra it's cost us since May over SVR. However the exit fee is £100 so may as well stay where we are and not fix again.

How can you do that without knowing the new unit prices?