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

unlcejoe

I currently use 12,000 electric units per year @30p, which is £3600
The cap is 2500, does this mean my energy provider will stop taking payments at £2500
Electric is my only form of energy

[Deleted User]

unlcejoe said:

I currently use 12,000 electric units per year @30p, which is £3600
The cap is 2500, does this mean my energy provider will stop taking payments at £2500
Electric is my only form of energy

No.  The cap is not an all-you-can-eat buffet.

What might change for you is the 30p - but if you use more you will still pay more.

delicious11

These price cap announcements are misleading as it is really dependent on the unit rate and standing charge plus how much energy one uses. I really wish they would just be direct and say exactly what kwh and daily charge rates will be capped at instead so everyone can make an informed decision for themselves.

spot1034

We still don' t know, do we, whether new SVT tariffs will be published or the original tariffs stay in place with discounts applied?

born_again

Happy_Sloth said:

So the announcement has just been made that the price cap is getting fixed at £2500. 

Anyone know what that means in terms of Price Per KWH for gas and electric?

I have the way people keep talking about this "Average family"  none of us are average we all use more or less.  i wish they would simply tell us the KWH capped rate then i could see how that will effect me personally. 

I wish they would stop with this whole CAP rubbish. Seems it is designed to confuse everyone.

Just tell people what the max unit rate that can be charged instead. At least then people can understand what they will be paying going forward.

phillw

DAVEMCFC said:
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

They could have given us the fuel for free, but they aren't going to.

From my understanding, they are going to try to get the fuel supplied cheap enough they don't have to subsidize it so much.

[Deleted User]

spot1034 said:

We still don' t know, do we, whether new SVT tariffs will be published or the original tariffs stay in place with discounts applied?

Suggestion is that new tariffs will be created, not a unit price discount.

RoadToRiches

Planeteer said:

RoadToRiches said:

What is this in terms of kWh and daily standing charges for someone on the cap. How many kWh of gas and electric do I get for my £2,500 a year bill and how have they divided this up between the two gas and electric?

It's not a bill, it's a cap - bills will be proportional to your use and the cap.

PM mentioned caps on wholesale rates - does that mean tracker tariffs will remain favourable, or switch to SVT?

Yeah what I want to know is how much is 1 kWh of Gas and 1 kWh of Electric going to cost me and what are the daily standing charges going to be for Gas and Electric? Then I can work out whether to stay on Octopus Trackers / Agile tariffs or not.

phillw

delicious11 said:

These price cap announcements are misleading as it is really dependent on the unit rate and standing plus how much one uses. I really wish they would just say whe kwh and daily charge rates would be capped at instead so everyone could make an informed decision for themselves.

They can't easily announce that as it's different in each area. They need to get the data out, but it's not so easily communicated.

MSE_James

Planeteer said:

I hope Martin Lewis will be able to publish a new price comparison tool with the new capped rates once available?

Yes, we will be updating our calculator once the detailed figures are available.