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

One-Eye

If the green levies are being temporarily scrapped, I believe that this means a reduction in standing charges, and there will be a corresponding higher increase than expected in unit costs to take the typical bill to £2500. This would mean a low user would receive a lower than average increase, and a high user's bills would go up by a higher than average percentage.

Standing charges from October were expected to be approx £285/year, and if we estimate green levies to be about £150, so standing charges could go down to £135/year. This means that the variable rates for 12000 kWh gas and 2900kWh electricity will add up to £2365. If we make the assumption that the price per kWh of electricity remains at 3.4x the price of gas then this gives unit rates of 10.8p for gas and 36.8p for electricity so:

For an average user, (2900x0.368)+(12000x0.108)+135 = £2498.20

My estimate of unit rates: Gas 10.8 p/kWh, Electricity 36.8 p/kWh

[Deleted User]

wrf12345 said:

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.

They don't know it yet, but we'll be able to work it out quickly once they publish the background numbers.

MSE_James

Martin has recorded a video:
https://www.youtube.com/watch?v=uONf5DrqtoM 

John_Philip_Howarth

I hope thst one eye's figures are NOT correct. I had already fixed my gas at 9.84p per Kwh with E.on from 2nd October 

Mstty

Not sure the fee free leaving the fixes was all Martin but he seems to want to take credit for it. But this is good news

Mstty

John_Philip_Howarth said:

I hope thst one eye's figures are NOT correct. I had already fixed my gas at 9.84p per Kwh with E.on from 2nd October 

As this is a two year deal bear that in mind.

Year one definitely £2100 for the masses with the £400 discount. Year two will be £2500. Hopefully someone will publish the rates soon but bear the above in mind and if they do discount year two by £400 it's a bonus 

MWT

John_Philip_Howarth said:

I hope thst one eye's figures are NOT correct. I had already fixed my gas at 9.84p per Kwh with E.on from 2nd October 

It looks to be in the right territory, we don't have enough detail to be precise, but if the standing charges are below the original October cap numbers then it would suggest a gas kWh figure above 10p, but only just above as the gas standing charges are not that high to begin with...

John_Philip_Howarth

MWT said:

John_Philip_Howarth said:

I hope thst one eye's figures are NOT correct. I had already fixed my gas at 9.84p per Kwh with E.on from 2nd October 

It looks to be in the right territory, we don't have enough detail to be precise, but if the standing charges are below the original October cap numbers then it would suggest a gas kWh figure above 10p, but only just above as the gas standing charges are not that high to begin with...

I would argue that total standing charges of just under 70 pence a day are high enough and need to be adjusted 

Happy_saver10

If you have fixed at a lower rate you will be better off than one eye's projections. If not you can leave the fix, penalty free so will not be disadvantaged.

Happy_saver10

GasPants said:

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.

I disagree, I am struggling on a low income and do not receive benefits or any additional support.  I am very relieved that prices are being frozen as I was very worried about how I would manage to pay the bills.