Electricity-only homes not covered by Energy Price Cap?

steveholc

If, as the BBC website stated, the Energy Price Guarantee is based on thresholds of 2900kWh of Electricity, and 12000 kWh of gas, then what about those houses that only use electricity and are not connected to mains gas?

I used 9914 kWh of Electricity last year, which is well under the 14900kWh (2900+12000) that the government considers an average, but it seems the price I pay will NOT BE CAPPED for the 7000kWh over the threshold that I will use. How is this fair?

My 84 year-old mother in law is int he same situation, along with her 54 neighbouring flats in a development full of elderly people. None of these pensioners, many living on benefits, will have their energy prices capped or guaranteed.

How, and to whom, can I report this loophole? I have already emailed my MP, but that was on the day the queen died, and apparently the government doesn't have to do any work for the forseeable future.

woolythoughts

Its a price per unit cap not a cap on amounts - every unit of electricity is capped at 35p per kWh 

[Deleted User]

steveholc said:

If, as the BBC website stated, the Energy Price Guarantee is based on thresholds of 2900kWh of Electricity, and 12000 kWh of gas, then what about those houses that only use electricity and are not connected to mains gas?

I used 9914 kWh of Electricity last year, which is well under the 14900kWh (2900+12000) that the government considers an average, but it seems the price I pay will NOT BE CAPPED for the 7000kWh over the threshold that I will use. How is this fair?

My 84 year-old mother in law is int he same situation, along with her 54 neighbouring flats in a development full of elderly people. None of these pensioners, many living on benefits, will have their energy prices capped or guaranteed.

How, and to whom, can I report this loophole? I have already emailed my MP, but that was on the day the queen died, and apparently the government doesn't have to do any work for the forseeable future.

You've entirely misunderstood the situation.  There is no loophole, your maths doesn't make any sense, and you're invoking a scare story about elderly people without any factual information.

If you have a single-rate electricity tariff, the price you pay for every unit is capped.  It doesn't stop at 2900, 3100, 14900 or any other number.

If you have multi-rate (like Economy 7) it was slightly more complicated to work out (because it was a combination of day+night rates that was capped).  We don't know exactly how that is being done yet, but there will be a cap.

edit: Actually it seems like some of the E7 numbers are starting to appear from suppliers now - with some surprising numbers in.  6.9p night rate for E7 anyone?

The_Green_Hornet

I find most threads about the Energy Price Guarantee are misleading 

steveholc

I'm not misleading anybody and my maths is correct. This is taken directly from the BBC's website.
I hope I'm wrong, but if I am the BBC is too.

steveholc

The last line is the key one - these are thresholds.

[Deleted User]

steveholc said:

The last line is the key one - these are thresholds.

If you use more, you will pay more.  Yes.  But the price that you will pay for each of those units is still capped.  They are not thresholds, they are just reference points used for demonstration.

You have misunderstood the entire concept.

ispookie666

Welcome. 
As others have pointed out. The price cap applies to each unit of gas or electricity. 
If you use more electricity, you will pay more - it's not a blank cheque 😊
Also, electricity is approx 3 times the price of gas

DE_612183

perhaps complain to the BBC?

[Deleted User]

If I am reading your concern properly, you are suggesting that there needs to be a higher assumed usage for electricity only homes. If units above the assumed usage figure were charged at a higher unit cost, you would probably have a case - but they are not.

The methodology adopted hasn’t been changed since the Cap was introduced. Electricity only homes have historically been more expensive to heat than those heated by gas.

[Deleted User]

[Deleted User] said:

If I am reading your concern properly, you are suggesting that there needs to be a higher assumed usage for electricity only homes. If units above the assumed usage figure were charged at a higher unit cost, you would probably have a case - but they are not.

The methodology adopted hasn’t been changed since the Cap was introduced. Electricity only homes have historically been more expensive to heat than those of gas.

You give the OP more credit than I do.  I read the concern as expecting 2900kWh at a capped rate and then everything else is at an uncapped or unlimited price.  Which incidentally some people have suggested doing as some sort of social tariff, but isn't the concept here.

For everyone reading who is confused - the £2500 and 2900kWh/12000kWh numbers are just an example, nothing more than that.  There are no break-points, thresholds, loopholes or anything else like that.