Price Cap query

JohnC29

I would be very grateful for someone to help me understand the price cap information better;  

I understand that the power companies sell gas and electricity in units: the price of those units varies from provider to provider and from region to region.  

We have just come to the end of a 12 month fixed Direct Debit deal with British Gas which concluded on September 30th 2022:   We were paying 19.349p per kW/h for electricity and a standing charge of 21.333p per day;   … and 3.797p per kW/h for gas and a standing charge of 23.574p per day. 

We moved house on 28th September to a new region, from East Midlands to East Anglia;  British Gas were unable, incapable or unwilling to transfer the account to our new address and have closed down the account with a final bill and meter reading.  I was quite happy to stay with them, obviously at a new tariff, whatever the new capped rate would be.

The previous owners of our new house had E-ON as the electricity provider (there is no mains gas here), .. E-ON have contacted us by letter to set up a new Direct Debit account with them for the electricity supply. 

My query is that I don’t think I fully understand all the new terminology;  I have looked at both Martin’s and Ofgem’s tables and still don’t get it. 

One of Martin’s price cap tables says -  average electricity unit rate should be 34.04p per kW/h and a standing charge of 46.36p per day. 

Another table says for the Eastern region electricity prices should be 35.06p per kW/h and a standing charge of 38.94p per day.  And another table says that average electricity unit rates for prepayment customers under the Government's new energy the prepaid price guarantee should be 33.08p per kW/h and a standing charge of 51.41p per day. 

My query is that on the introduction letter to us from E-ON they say that our new home is currently supplied by a Next Flex “payment on receipt of bill” tariff at 55.72p per kW/h and 44.58p per day standing charge, …. and that if I enter the PIN they sent I can see other tariffs, but that doesn’t work, only one tariff is shown.

When I enter the PIN and follow the steps it asks me for my bank details to set up a Direct Debit, which I’m OK with doing, ..  but then gives me no choice of tariffs just a price of 52.9p per kW/h and 38.9p per day standing charge;  I appreciate this is a lower standing charge than those quoted above but it also a significantly higher kW/h charge. 

I would be very grateful if someone could point out what I am missing or failing to understand ?  I just want to know what my electricity unit price per kW/h will be,  and whether it is in line with the price cap ...   the numbers 55.72 or 52.9 per kW/h Ive been quoted so far seem to be above the price cap?

Many thanks. 

JohnC

jbuchanangb

You should sign up with E.ON Next on the Next Flex Direct Debit tariff. The amounts you have seen are indeed above the Energy Price Guarantee levels, they are probably the OFGEM October price cap levels. Once E.ON Next have set up your account they will sort out the billing. It will be a little bit complicated, because you will have 3 days (28,29 & 30 September) at the pre-increase Next Flex rates, thereafter at the increased rates with the EPG reduction applied. I have been with E.ON Next since being transferred to them when Symbio went bust, and they have been OK.

matelodave

As said above, you may need to phone E0n-Next to get it sorted, but my previous 55p or so was automatically dropped to 34.05p/kwh on 1st October. You need to change your method of payment as paying on "reciept of a bill"  ould cost you around 7% more than paying by direct debit.

Here my going rate for the Eastern Region - 

Electricity

Next Flex

Fixed term ends 13/08/2023

35.06 p/kWh 38.94 p/day

(All rates inc. VAT)

dunstonh

We moved house on 28th September to a new region, from East Midlands to East Anglia;  British Gas were unable, incapable or unwilling to transfer the account to our new address and have closed down the account with a final bill and meter reading.

Which is understandable and expected.

One of Martin’s price cap tables says -  average electricity unit rate should be 34.04p per kW/h and a standing charge of 46.36p per day. 

Martin gives an average.  That means some will be above and below. It isn't actually saying what yours should be.

Another table says for the Eastern region electricity prices should be 35.06p per kW/h and a standing charge of 38.94p per day.  And another table says that average electricity unit rates for prepayment customers under the Government's new energy the prepaid price guarantee should be 33.08p per kW/h and a standing charge of 51.41p per day. 

Are you pre-payment or direct debit?  (most are direct debit).   Pricing differs with both methods.
You say electric only.  Are you on economy 7 on the new property or is it oil or LPG for heating?

My query is that on the introduction letter to us from E-ON they say that our new home is currently supplied by a Next Flex “payment on receipt of bill” tariff at 55.72p per kW/h and 44.58p per day standing charge, …. and that if I enter the PIN they sent I can see other tariffs, but that doesn’t work, only one tariff is shown.

Normally, a supplier would have multiple tariff options but that isn't the case at the moment.  

MWT

JohnC29 said:

I would be very grateful if someone could point out what I am missing or failing to understand ?  I just want to know what my electricity unit price per kW/h will be,  and whether it is in line with the price cap ...   the numbers 55.72 or 52.9 per kW/h Ive been quoted so far seem to be above the price cap?

As a rough guide, deduct 17p from the quoted figures, they have just not updated them for the new cap yet.

What you have noticed correctly though is that the prices do vary depending on your method of payment, so be aware that the oft quoted average 34p/kWh is based on payment in advance by monthly DD for a single-rate tariff. Other payment methods will be at slightly different prices...

JohnC29

Thank you both, ... very much appreciated.

 I've now set up the account online with EON and a DD, ..  it looks as though I now have an account set up with a unit price of 35.06 and a daily standing charge of 38.94 ...  as I've set up a DD will I also get an automatic drop to 34.05p per kW/h as well?

 

Spoonie_Turtle

JohnC29 said:

Thank you both, ... very much appreciated.

 I've now set up the account online with EON and a DD, ..  it looks as though I now have an account set up with a unit price of 35.06 and a daily standing charge of 38.94 ...  as I've set up a DD will I also get an automatic drop to 34.05p per kW/h as well?

 

No, the EPG unit rate for the East is 35.06.  Lower standing charge but higher unit rate, welcome to the fun of being all-electric in this part of the country.

JohnC29

Spoonie_Turtle said:

JohnC29 said:

Thank you both, ... very much appreciated.

 I've now set up the account online with EON and a DD, ..  it looks as though I now have an account set up with a unit price of 35.06 and a daily standing charge of 38.94 ...  as I've set up a DD will I also get an automatic drop to 34.05p per kW/h as well?

 

No, the EPG unit rate for the East is 35.06.  Lower standing charge but higher unit rate, welcome to the fun of being all-electric in this part of the country.

Thanks, .. so the price of supplying electricity to my house is more expensive if I don't have/pay for mains gas ...  doesn't sound fair ...  I'm guessing that power companies are exempt from any customer conduct regulatory requirements ? ...  

PS ...   I've already discovered that Anglian Water, .. who I have also have "had" to swap over to from Severn Trent, charge more per cubic metre in their "home area" than they do in other areas.  very strange. 

Spoonie_Turtle

JohnC29 said:

Spoonie_Turtle said:

JohnC29 said:

Thank you both, ... very much appreciated.

 I've now set up the account online with EON and a DD, ..  it looks as though I now have an account set up with a unit price of 35.06 and a daily standing charge of 38.94 ...  as I've set up a DD will I also get an automatic drop to 34.05p per kW/h as well?

 

No, the EPG unit rate for the East is 35.06.  Lower standing charge but higher unit rate, welcome to the fun of being all-electric in this part of the country.

Thanks, .. so the price of supplying electricity to my house is more expensive if I don't have/pay for mains gas ...  doesn't sound fair ...  I'm guessing that power companies are exempt from any customer conduct regulatory requirements ? ...  

No, that's the rate for the region, whether you have gas or not.  (The region is large, plenty of areas do have gas and their electricity tariffs are the same as ours.)

[Deleted User]

JohnC29 said:

Spoonie_Turtle said:

JohnC29 said:

Thank you both, ... very much appreciated.

 I've now set up the account online with EON and a DD, ..  it looks as though I now have an account set up with a unit price of 35.06 and a daily standing charge of 38.94 ...  as I've set up a DD will I also get an automatic drop to 34.05p per kW/h as well?

 

No, the EPG unit rate for the East is 35.06.  Lower standing charge but higher unit rate, welcome to the fun of being all-electric in this part of the country.

Thanks, .. so the price of supplying electricity to my house is more expensive if I don't have/pay for mains gas ...  doesn't sound fair ...  I'm guessing that power companies are exempt from any customer conduct regulatory requirements ? ...  

PS ...   I've already discovered that Anglian Water, .. who I have also have "had" to swap over to from Severn Trent, charge more per cubic metre in their "home area" than they do in other areas.  very strange. 

It's nothing to do with whether you have a gas connection or not.  It is entirely to do with how expensive it is to purchase and supply electricity to your region.

Things are different prices in different places.  This is not "strange" and has nothing to do with "customer conduct regulatory requirements".

It was decided several decades ago that the system should not be entirely socialised and that there should be some representation of the true geographical cost.  This isn't the suppliers' decision, this is the regulator's decision on instruction from the government (and no later government of any colour has attempted to change it).

Spoonie_Turtle

Actually I think I may have caused that confusion by mentioning all-electric, sorry - what I meant was, being all-electric we use more of it than people with gas, so for us any potential savings from the lower standing charge are completely obliterated by the higher unit rate.

It was something on my mind at the time of making that comment but wasn't strictly relevant to this thread, sorry.