Energy Price Guarantee and fixed rates

kend70

Hi, I've searched the forums and British Gas's website for information but cannot find an answer to my question:

I took out a British Gas dual fuel fixed price deal (Exclusive Jul 23v2). With the introduction of the Energy Price Guarantee, my unit rates are below the guarantee (so I expect no discount to apply), but my standing charges (both gas and electricity) are above the guarantee. Will British Gas apply the discount to just the standing charges?


Gas tariff

Standard unit rate	10.200p per kWh (lower than the 10.330p guarantee)
Standing charge	30.645p per day (higher than the 28.485p guarantee)

Electricity tariff

Standard unit rate	32.240p per kWh (lower than the 34.037p guarantee)
Standing charge	55.077p per day (higher than the 46.356p guarantee)

Hoping someone else is in a similar situation and already knows how the discounts will work when part of the fixed tariff is higher than the guarantee but part is lower.

Thank you in advance
Ken

[Deleted User]

The government has never said that there will be any discounts on standing charges of fixed tariffs.

CanNeverThinkOfAUsername

From my understand the Energy Price Guarantee is only on units of gas and elec. It does not effect the standing charges so they wont change.

(i could be wrong so wait for someone else to reply lol, this is just what i understand)

The_Fat_Controller

The EPG only applies to the gas and electricity unit rates, not standing charges.

Using the average user figures (2900 kWh E and 12000 kWh G) that tariff works out at £2472 so below the mythical £2500, therefore no reduction to be expected.

MWT

kend70 said:

Will British Gas apply the discount to just the standing charges?

No, there is no obligation to discount the standing charge on a fixed tariff.

Grahmb65

Can anyone make any sense of my bill for 2 days from E-on especially the Energy Price Guarantee discount of £2.01 and the last part, total charges £6.23

I am not a mathematicion but I regard myself as having average intelligence and I am completely baffled.

Next Flex (1st October 2022 - 2nd October 2022)

Energy Charges for Meter *********

1st Oct 2022 14193.2 Smart meter reading

3rd Oct 2022 14205.0 Smart meter reading

Energy Used 11.8 kWh @ 48.45p/kWh £5.72

Energy Price Guarantee 11.8 kWh @ 17.00p/kWh -£2.01

Standing Charge 2 days @ 47.186p/day £0.94

Subtotal of charges before VAT £4.65

VAT @ 5% £0.23

Total Electricity Charges £4.88

Total charges before VAT £5.94

Total VAT £0.29

Total charges for bill £6.23

ariarnia

hi grahm. if you are on a fix that has unit rates higher than the guarentee then you have a choice to say on your fix and have the rates discounted or to move onto variable. looking at it you decided to fix so have the discount. the discount is a max of 

rather than change your unit rates on the system (which would mean setting up a bespoke tarrif for everyone) they have put a discount on your tarrif of the difference between your unit rate and the guarentee. thats the £2

here's the bit in the goverment info 

Fixed tariff customers will have the same support where appropriate. Unit price reductions of up to 17p/kWh for electricity and 4.2p/kWh for gas will apply to fixed tariff customers that currently have unit rates above the EPG.

A ‘floor’ unit price for gas averaging at 10.3p/kWh and for electricity averaging at 34p/kWh for direct debit customers will be introduced, because some people will have fixed at much lower prices some time ago, meaning their payments will already be below the level set by the Energy Price Guarantee.

Customers on fixed rate tariffs that are already below the floor unit prices will continue to enjoy those low rates, but will not receive a further discount for the duration of their fixed term.

For the small number of consumers who fixed at a high rate exceeding the October Ofgem price cap of £3,549, they will receive the full discount of 17p for electricity and 4.2p for gas. However, given the higher starting point, their fixed rate tariff will still have a unit rate that is above the EPG rates.

https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022

[Deleted User]

Grahmb65 said:

Can anyone make any sense of my bill for 2 days from E-on especially the Energy Price Guarantee discount of £2.01 and the last part, total charges £6.23

I am not a mathematicion but I regard myself as having average intelligence and I am completely baffled.

Next Flex (1st October 2022 - 2nd October 2022)

Energy Charges for Meter *********

1st Oct 2022 14193.2 Smart meter reading

3rd Oct 2022 14205.0 Smart meter reading

Energy Used 11.8 kWh @ 48.45p/kWh £5.72

Energy Price Guarantee 11.8 kWh @ 17.00p/kWh -£2.01

Standing Charge 2 days @ 47.186p/day £0.94

Subtotal of charges before VAT £4.65

VAT @ 5% £0.23

Total Electricity Charges £4.88

Total charges before VAT £5.94

Total VAT £0.29

Total charges for bill £6.23

The EPG negative line is just E.ON's way of showing the cap - they show you what you would have paid at full price and then minus away the part needed to get you to the cap (to a max of 17p as ariarnia mentioned).

Is there a gas part to your bill?  Or possibly a second electricity section? That would explain why subtotal and total are different - but I would hope that you would have noticed that yourself.

Chrysalis

The EPG doesnt recognise SC costs, it only applies to unit rates.

964_targa

As a ‘newbie’ please forgive me if this is not the right forum……..
My query is about when the energy company I am with adds VAT to the bill.

What they have done is calculate my energy usage (£261.66) add the VAT (£13.08) giving a total of £274.74. Then deducting the energy support £66. Total paid by me of £208.74.

Normally VAT is added to the end of the bill so total energy usage £261.66) deduct the energy support £66 making £195.66, then add the VAT (£9.78) making total £205.44.

The difference being £3.30 - not a lot, but better in my pocket!

stewie_griffin

The EBSS is a payment so it doesn’t affect VAT.