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

sienew

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.

90% of the population wouldn't understand those figures and what it meant in real terms for their bills.

unlcejoe

[Deleted User] said:

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.

I thought I was quids in then, so if the new rate is lets 23p then it's worth switching if on a fixed rate.

Janie2008

No fees allowed to be charged for those switching from fixed to variable. Just heard this on the radio.

[Deleted User]

unlcejoe said:

[Deleted User] said:

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.

I thought I was quids in then, so if the new rate is lets 23p then it's worth switching if on a fixed rate.

That's right, compare the new rate to your existing rate before deciding what to do.

Before the announcement, predictions were around 34p for the new electricity price, but until more details come out we can't check how close those predictions were.

nevill3

My initial calculation would suggest the prices per unit will rise by about 27% The price difference between 2500 average and current 1971 average. This could mean about 9.31p for gas and 35.5p for electricty

Just_A_Dad

our fixed cap with BG from July for 12 months was for ~3.5K p/a
looks like all things considered a no-brainer to switch back to the variable as its cheaper and for longer.
with BG deal there are no exit fees to go onto another BG tariff (i.e. their variable/standard rate)

xzibit

Just_A_Dad said:

our fixed cap with BG from July for 12 months was for ~3.5K p/a
looks like all things considered a no-brainer to switch back to the variable as its cheaper and for longer.
with BG deal there are no exit fees to go onto another BG tariff (i.e. their variable/standard rate)

£3.5k a year based on your usage or the average usage. Be careful, perhaps work out what your tariff would cost on the average figures 2900/12000 and then compare to the £2500. 

wrf12345

They could just as easily have given the average new s/c and kwh rates compared to the old ones, which would have given everyone a ballpark figure. But it could not then be presented as a cut (over the Ofgem Oct cap) rather than a rise on the April cap.

london21

The £2500 is average houshold.

If you use more than average, your bill will be more.
If you use less than average, your bill will be less.

I am still with Bulb enegry.

nevill3

nevill3 said:

My initial calculation would suggest the prices per unit will rise by about 27% The price difference between 2500 average and current 1971 average. This could mean about 9.31p for gas and 35.5p for electricity

Although Martin suggests a 6.5% increase on your current direct debit allowing for the £400 rebate we will still receive. 

How removing the green levee effects unit prices is also beyond my ability or inclination to calculate