Is it possible to be charged over the £2500 price guarantee even if you have Ofgem typical usage?

MalC4

It seems that my energy provider's unit prices and standing charges when multiplied by the Ofgem 'typical usage' (12,000 kWh gas and 2,900 kWh electricity) will mean that I would pay more than the £2,500/annum EPG.

The Gov.uk website states that "Under new plans, a typical UK household will pay no more than £2,500 a year on their energy bill for the next two years from 1st October" (Government announces Energy Price Guarantee for families and businesses while urgently taking action to reform broken energy market - GOV.UK (www.gov.uk)

The government wants us to be very grateful for their intervention and at no point have I heard or read anything that quotes anything other the £2,500 figure. There has been no suggestion that this is an estimated figure.

Can anyone tell me where the small print is that says an energy provider can charged more than the very much publicised amount? Or, have the people of South Wales been deliberately mislead and will all pay higher than 'guaranteed' rates?

 

I'd really appreciate it if someone could show me what I missed

Thank you

alleycat`

Yes it's possible, although not by a huge amount (accepting that any additional money is possibly a back breaker for many).

I believe the variations I've seen are about £50 either way depending on the region you live in.

Here's an Octopus example:-

https://octoenergy-production-media.s3.amazonaws.com/images/Screenshot_2022-09-22_at_11.29.05.width-800.png

[Deleted User]

The published amount is an average of averages and doesn't apply to anyone directly (although I think actually the Eastern DNO region has exactly £2500 cap this time).

There have always been slightly different caps for each region and for each payment type.  This was true in the old cap system and is still true in the new government cap system.

This is referred to inmost pieces of documentation that I have seen regarding the matter, nobody has been deliberately misled.

RobM99

"Typical" gives a clue. If there was a price cap of £2,500 max, then we'd all use as much as possible because the excess would be free.

[Deleted User]

Looking at the deeper details - I read that the South Wales licence area cap for typical DD user is £2515.

[Deleted User]

alleycat` said:

Yes it's possible, although not by a huge amount (accepting that any additional money is possibly a back breaker for many).

I believe the variations I've seen are about £50 either way depending on the region you live in.

Cheapest cap I can find is £2445, most expensive is £2785.

StocktonFlyer

I've just put my new Utility Warehouse rates in with a typical usage of 12,000 kwh Gas and 2900kwh Electric and it came out at £2431.95.

My usage is higher than that though.

Incidentally I have no other services with them, this is the default Value variable tarrif.

dunstonh

The government wants us to be very grateful for their intervention and at no point have I heard or read anything that quotes anything other the £2,500 figure. There has been no suggestion that this is an estimated figure.

You may wish to get better reading sources as its available.

Can anyone tell me where the small print is that says an energy provider can charged more than the very much publicised amount?

Not sure about small print but its in normal print on the .gov website that provided the details.

The problem with using typical is that virtually nobody is typical.   Everyone will be somewhere either side of that. 

tifo

alleycat` said:

Yes it's possible, although not by a huge amount.

I believe the variations I've seen are about £50 either way depending on the region you live in.

Not really, i've got my projections and it's about £3,200 a year for gas and electricity. I'm with different suppliers.

philipbin

Using EDFs rates

MWT

tifo said:

alleycat` said:

Yes it's possible, although not by a huge amount.

I believe the variations I've seen are about £50 either way depending on the region you live in.

Not really, i've got my projections and it's about £3,200 a year for gas and electricity. I'm with different suppliers.

Your use is not going to be the 2,900kWh/12,000kWh electric/gas though is it?

The £2,500 figure is just the average of all the regions for someone with that specific use, paying by DD.

Individual estimates could be thousands higher or even lower based on their individual usage estimates.

It isn't a cap on everyone's bills...