Guess the unit costs of the new cap :)

[Deleted User]

The_Fat_Controller said:

The SCs were going to change, albeit very marginally, between the April and October caps.

Yes, on the average household always presented by the press, they were going to reduce by 0.01p for each fuel.  Not sure that changes the point a whole lot.

caveman38

Average price cap unit rates
Customer with typical usage, paying by direct debit*

	Last price cap period (1 April - 30 September 2022)	Current price cap period (1 October - 31 December 2022)
Electricity	£0.28 per kWh Daily standing charge: £0.45	£0.52 per kWh Daily standing charge: £0.46
Gas	£0.07 per kWh Daily standing charge: £0.27	£0.15 per kWh Daily standing charge: £0.28

Surely the new prices per unit will be approx. 25% dearer than the April 22 cap

What_time_is_it

Is there any chance it will be packaged as a price DISCOUNT instead? 
i.e. The price cap unit rates go up to what they were due to go to on 1st Oct, but a discount is then applied to these unit rates to bring the overall "average" user costs down to £2,500?

Or will it effectively be a new price cap with fixed unit rates and standing charges for 2 years?

[Deleted User]

caveman38 said:

Average price cap unit rates
Customer with typical usage, paying by direct debit*

	Last price cap period (1 April - 30 September 2022)	Current price cap period (1 October - 31 December 2022)
Electricity	£0.28 per kWh Daily standing charge: £0.45	£0.52 per kWh Daily standing charge: £0.46
Gas	£0.07 per kWh Daily standing charge: £0.27	£0.15 per kWh Daily standing charge: £0.28

Surely the new prices per unit will be approx.5% dearer than the April 22 cap

The cap change might not be evenly balanced between the four components.

Astria

What_time_is_it said:

Is there any chance it will be packaged as a price DISCOUNT instead? 
i.e. The price cap unit rates go up to what they were due to go to on 1st Oct, but a discount is then applied to these unit rates to bring the overall "average" user costs down to £2,500?

Or will it effectively be a new price cap with fixed unit rates and standing charges for 2 years?

Well it's said that the new price cap overrides the Ofgem cap for 2 years I think?, so I don't think it'll be a discount. We'll just fall back to the Ofgem cap after this one has expired.

superjuz

caveman38 said:

Average price cap unit rates
Customer with typical usage, paying by direct debit*

	Last price cap period (1 April - 30 September 2022)	Current price cap period (1 October - 31 December 2022)
Electricity	£0.28 per kWh Daily standing charge: £0.45	£0.52 per kWh Daily standing charge: £0.46
Gas	£0.07 per kWh Daily standing charge: £0.27	£0.15 per kWh Daily standing charge: £0.28

Surely the new prices per unit will be approx.5% dearer than the April 22 cap

Surely it is nearer 25 percent ? £1971 (current cap) x 1.25 = £2463.

What am I missing?...

ariarnia

What_time_is_it said:

Is there any chance it will be packaged as a price DISCOUNT instead? 
i.e. The price cap unit rates go up to what they were due to go to on 1st Oct, but a discount is then applied to these unit rates to bring the overall "average" user costs down to £2,500?

Or will it effectively be a new price cap with fixed unit rates and standing charges for 2 years?

they've said it will overright the ofgem october cap so i think that means it will be a new cap with new rates. 

i'm mostly interested in if the removal of the levy part of the standing charge will apply to everyone. including those on fixes. 

caveman38

superjuz said:

caveman38 said:

Average price cap unit rates
Customer with typical usage, paying by direct debit*

	Last price cap period (1 April - 30 September 2022)	Current price cap period (1 October - 31 December 2022)
Electricity	£0.28 per kWh Daily standing charge: £0.45	£0.52 per kWh Daily standing charge: £0.46
Gas	£0.07 per kWh Daily standing charge: £0.27	£0.15 per kWh Daily standing charge: £0.28

Surely the new prices per unit will be approx.5% dearer than the April 22 cap

Surely it is nearer 25 percent ? £1971 (current cap) x 1.25 = £2463.

What am I missing?...

Nothing. I missed out the 2 in 25 now edited

Sea_Shell

ariarnia said:

What_time_is_it said:

Is there any chance it will be packaged as a price DISCOUNT instead? 
i.e. The price cap unit rates go up to what they were due to go to on 1st Oct, but a discount is then applied to these unit rates to bring the overall "average" user costs down to £2,500?

Or will it effectively be a new price cap with fixed unit rates and standing charges for 2 years?

they've said it will overright the ofgem october cap so i think that means it will be a new cap with new rates. 

i'm mostly interested in if the removal of the levy part of the standing charge will apply to everyone. including those on fixes. 

Me too.


Surely, a supplier can't continue to collect a levy, that is being scrapped!?

Or is a contract for Xp standing charge set in stone?

Obviously VAT is outwith the fix rates, if adjusted in the future.

[Deleted User]

Sea_Shell said:

ariarnia said:

What_time_is_it said:

Is there any chance it will be packaged as a price DISCOUNT instead? 
i.e. The price cap unit rates go up to what they were due to go to on 1st Oct, but a discount is then applied to these unit rates to bring the overall "average" user costs down to £2,500?

Or will it effectively be a new price cap with fixed unit rates and standing charges for 2 years?

they've said it will overright the ofgem october cap so i think that means it will be a new cap with new rates. 

i'm mostly interested in if the removal of the levy part of the standing charge will apply to everyone. including those on fixes. 

Me too.


Surely, a supplier can't continue to collect a levy, that is being scrapped!?

Or is a contract for Xp standing charge set in stone?

Obviously VAT is outwith the fix rates, if adjusted in the future.

Well it appears that the general sentiment is "contracts can be ripped up at will".