Capped price vs kwh price

jennifer68

Can someone please explain why everyone is quoting the maximum capped price in £thousands rather than giving us the capped kwh price?  I really do feel for those who do not realise they may not actually have to pay £2,500.  It annoys me when the news quote this figure, rather than the kwh figure

[Deleted User]

Because we don't know the kWh price yet, there are more details that need to be published before we can work it out.

jennifer68

[Deleted User] said:

Because we don't know the kWh price yet, there are more details that need to be published before we can work it out.

Thank you for your reply SparkyGrad. But surely, they set the £2,500 cap as an average figure for energy users.  Therefore there must be an average yearly kwh usage figure?    It just annoys me that people are thinking they will be charged a maximum of £2,500, when in fact, a lot will be lower and a lot will be higher.  

MWT

jennifer68 said:

[Deleted User] said:

Because we don't know the kWh price yet, there are more details that need to be published before we can work it out.

Thank you for your reply SparkyGrad. But surely, they set the £2,500 cap as an average figure for energy users.  Therefore there must be an average yearly kwh usage figure?    It just annoys me that people are thinking they will be charged a maximum of £2,500, when in fact, a lot will be lower and a lot will be higher.  

If you need something to work with pending a real answer, assume around 10p/kWh for gas and 35p/kWh for electric, with the standing charges broadly similar to what they are now.

Those numbers will be wrong, but as an average across the country they will probably not be hugely wrong.

Remember the £400 is still going to be paid as well...

[Deleted User]

jennifer68 said:

Deleted_User said:

Because we don't know the kWh price yet, there are more details that need to be published before we can work it out.

Thank you for your reply SparkyGrad. But surely, they set the £2,500 cap as an average figure for energy users.  Therefore there must be an average yearly kwh usage figure?    It just annoys me that people are thinking they will be charged a maximum of £2,500, when in fact, a lot will be lower and a lot will be higher.  

We can, but only with some assumptions.  There is actually a cap for gas and a cap for electric - we don't yet know if it will be £1250/£1250, £1350/£1150, £2000/£500 or any other mix.  That's the bit we're missing and after we have it we can work out the unit prices.

It's all based on using 12000 kWh of gas and 2900 kWh of electricity - this part we know.

jennifer68

[Deleted User] said:

jennifer68 said:

Deleted_User said:

Because we don't know the kWh price yet, there are more details that need to be published before we can work it out.

Thank you for your reply SparkyGrad. But surely, they set the £2,500 cap as an average figure for energy users.  Therefore there must be an average yearly kwh usage figure?    It just annoys me that people are thinking they will be charged a maximum of £2,500, when in fact, a lot will be lower and a lot will be higher.  

We can, but only with some assumptions.  There is actually a cap for gas and a cap for electric - we don't yet know if it will be £1250/£1250, £1350/£1150, £2000/£500 or any other mix.  That's the bit we're missing and after we have it we can work out the unit prices.

It's all based on using 12000 kWh of gas and 2900 kWh of electricity - this part we know.

Thank you!

victor2

jennifer68 said:

Can someone please explain why everyone is quoting the maximum capped price in £thousands rather than giving us the capped kwh price?  I really do feel for those who do not realise they may not actually have to pay £2,500.  It annoys me when the news quote this figure, rather than the kwh figure

More people don't know what a kWh is, especially when related to gas usage, where they do understand what a £ is. Then you've got the standing charge to consider for each fuel. Of course hardly anyone is an "average" user and many see the cap as a maximum they will pay.
The whole issue is over complicated, but it's difficult to see a way to address it which everyone will understand.