The new unit rates

nbyuio

Someone from the website: please could you remove the unit prices on the "what-are-the-price-cap-unit-rates-/#tool" page, since they are the pre-£2500 cap rates, and won't now be coming into force on 1 Oct.

There are plenty of announcements that the new rates will be posted as soon as you get them; thanks.

If a company can operate OK charging less than the capped rate, do they? Is there any example of this? And if so, do they come down a bit on the unit rate or the standing charge?

[Deleted User]

nbyuio said:

If a company can operate OK charging less than the capped rate, do they? Is there any example of this? And if so, do they come down a bit on the unit rate or the standing charge?

I think the Octopus Loyalty tariffs are set to £50 below the cap - I'm not on one so I can't be certain how they do it.

Spoonie_Turtle

[Deleted User] said:

nbyuio said:

If a company can operate OK charging less than the capped rate, do they? Is there any example of this? And if so, do they come down a bit on the unit rate or the standing charge?

I think the Octopus Loyalty tariffs are set to £50 below the cap - I'm not on one so I can't be certain how they do it.

The Loyal Octopus discount is a discount on the standing charge.  

Shedman

UW offer 5% below standard variable (but you have to take other services).  And their SC charges are generally lower than cap.

Be interesting to see if they contnue to offer this against the new EPG capped rates

JRChappers

Can anyone explain the process of who and how the Unit Rates are
determined once the "government" have announced a cap? 
And why is it taking so long?

[Deleted User]

JRChappers said:

Can anyone explain the process of who and how the Unit Rates are
determined once the "government" have announced a cap? 
And why is it taking so long?

There isn't one cap, there are five pages of very slightly different caps.  None of these are actually "the cap" as talked about in press releases.

Assuming the same process is followed for this cap - OFGEM will publish a new set of five pages and then we'll work it out for you.  It's a bit more complex for OFGEM this time because the maths they use to get the numbers is being changed by the government in some way that isn't yet clear.

Best guesses at the moment are about 10p gas and 35p electric, but we really don't know what the new numbers are actually going to be.

km1500

energy customers will let people know before 1 oct

https://www.bbc.co.uk/news/business-62834191

Astria

JRChappers said:

Can anyone explain the process of who and how the Unit Rates are
determined once the "government" have announced a cap? 
And why is it taking so long?

They have to do all the regional price differences

[Deleted User]

Astria said:

JRChappers said:

Can anyone explain the process of who and how the Unit Rates are
determined once the "government" have announced a cap? 
And why is it taking so long?

They have to do all the regional price differences

and billing method differences.

Or, to be officially told that there will be no regional or billing method differences.

QrizB

JRChappers said:

Can anyone explain the process of who and how the Unit Rates are determined once the "government" have announced a cap?

See the link in my signature (I'll have to update it once the details are published).

And why is it taking so long?

The announcement of a £2500 cap is a political statement. Now BEIS and Ofgem have to work out how to put this into practice, and then there needs to be legislation drafted, tabled and approved.

It will be a huge rush to get it done in time and I imagine there will still be wrinkles to iron out, rather like there were with the lockdown laws

[Deleted User]

QrizB said:

JRChappers said:

Can anyone explain the process of who and how the Unit Rates are determined once the "government" have announced a cap?

See the link in my signature (I'll have to update it once the details are published).

And why is it taking so long?

The announcement of a £2500 cap is a political statement. Now BEOS and Ofgem have to work out how to put this into practice, and then there needs to be legislation drafted, tabled and approved.

It will be a huge rush to get it done in time and I imagine there will still be wrinkles to iron out, rather like there were with the lockdown laws

Brilliantly (?), they now seem to be announcing that it will all be done with commercial contracts and there will be no legislative changes made to implement the scheme - because legislation couldn't be finished fast enough during the period of mourning.