Don't understand Price Cap v New Charge

fd1972uk

Hi,

Sorry if this is in the wrong thread, but using phone and can't see a general discussion.

Will try and get through to British Gas but they're closed on Monday (if they're open).

I've waited to see my new bill and price so the email dropped.

It says I was £123 in credit upto now, I was paying £148 per month.

Now my monthly price is saying £375 per month?

I don't follow that, I'm on dual fuel and the cap is £2500, and was on Standard.

Will this just automatically change or would I adjust it?

TIA

FD

[Deleted User]

The cap is a cap on unit prices, not a total amount.  If you use more than the ‘typical usage’ then you will pay more than £2500.

Do you know your annual usage?

Many things could affect the monthly figure, including how much they think you will use, and whether you are in the correct amount of credit going into the most expensive part of the year for energy.

Coffeekup

It's a cap on the unit rate for gas and electric, once they roll the numbers into "typical" energy usage of a home, which is 2,900 kWh's for electricity and 12,000 kWh's for gas it work out at £2,500 a year. If you use more kWh's for gas and electric than above it'll cost you more, if you use less you'll be paying less.

As sparky said you need to know your annual usage for the year, best way to find that out is look at your smart meter if you have one, if not take meter readings today and look for a bill you have in the last 9-15 months with a reading on it that's done by you or a reader. Don't look at the estimated (E) reading's as they could be well off in number's either higher or lower.
Example last September read for electricity was 63,000 and September this year is 68,500 which means you use 5,500 units a year.

Post the readings you have on this thread with the date of the reads and some helpful forumites will get back to you on what you're projected costs will be for the next year.

fd1972uk

Just an update spoke to someone end of last month from BG  who said I should cancel my direct debit and then phone them up and pay another figure that I can manage.

I told them I'd pay the increased charge this month and they advised me to call back and ask them about changing the cost.

Between times I get an updated state of bill, telling me my annual charge has went from £2300 to £3009 per year based on my last years usage. I say to the girl, who then proceeds to tell me that it doesn't change the figure of £375 per month, that equates to £4500 per year on an assumption I guess?

Will try over coming days together through butnwith work it's quite hard as I've had 1 hr to 2 hrs wait times.

FD

[Deleted User]

You need to tell us your annual usage in kWh before we can help you understand if these numbers are sensible or not.

dunstonh

Between times I get an updated state of bill, telling me my annual charge has went from £2300 to £3009 per year based on my last years usage. I say to the girl, who then proceeds to tell me that it doesn't change the figure of £375 per month, that equates to £4500 per year on an assumption I guess?

If you have been giving them meter readings and they have a history of your REAL use over at least a year, then they can project using relatively safe assumptions.   If you dont give meter readings and you are relying on esitmates, then the margin of error significantly increases.

The only way to know if their figures are sensible is if you have given meter readings.  We can help you here by you telling us what your meter readings are.    If they are all estimates then that is no use for anyone.  They need to be real meter readings.

fd1972uk

Okay, thanks, will do that.

It's a smart meter I don't have to provide readings, that's why I was confused with charge to usage.

fd1972uk

You’ll stay on your current tariff, Standard Variable, but your unit rates and standing charges will increase on 1st October 2022. £3,009.09  per year⁓ Estimates based on paying by Direct Debit This is calculated on £1,699.91 for gas based on 15,532kWh of usage and £1,309.18 for electricity based on 3,330kWh of usage. Tariff type: Variable Tariff end date: No end date

Unit rates Your unit rate is the amount you pay for each unit of energy you use (measured in kilowatt hours) and includes the Government's Energy Price Guarantee discount† Gas: 10.276p per kWh Electricity: 33.762p per kWh Standing charges Your standing charge is a daily rate, which pays for getting the energy from the generators into your home Gas: 28.485p per day Electricity: 50.665p per day

fd1972uk

That's based on last year's usage.

jbuchanangb

On those numbers it would be reasonable to pay £250 per month, without allowing for the government rebate.

rp1974

fd1972uk said:

Okay, thanks, will do that.

It's a smart meter I don't have to provide readings, that's why I was confused with charge to usage.

Even though it is a smart meter,it would be wise to occasionally check that it's sending accurate readings by manually reading the meter.
A few minutes spent doing that could be useful should anything untoward occur,which based on former experience of British Gas is almost inevitably going to be the case.