Energy price cap

ljffoxy

Hi, I'm hoping someone can help me because I am struggling to fathom how my energy company can increase my full monthly payments to more than £208 per month when the price is capped at £2500 pa. I am £200 in credit and just been informed that my new payment will be just over £200 per month once the £66 credit is applied...surely that takes my annual projection beyond the price cap? I wanted to check what resources are available to work this out for myself before I tackle my provider.

I have a slight side issue that I am kicking off royally about at the moment as they are refusing to upgrade my smart meter to one that is compatible with an in house display unit. I am in the midst of a complaint about this and they keep fobbing me off. I feel as though they are deliberately blocking me from proactively managing my energy usage for their own financial gain but would welcome and suggestions from the forum about this too abd how to progress. I have asked for their formal escalation process but have not been obliged.

The_Fat_Controller

The overall price is not capped at £2500 !

There is no maximum price you can pay.

The unit rates per KWh for electricity and gas are capped.

If you use more than the mythical average household you will pay more than their £2500.

What is your actual annual usage in KWh for both electricity and gas ?

[Deleted User]

Oh no. 

The EPG is to all and intents purposes a fixed tariff for the next 12 months. The OP needs to sit down and calculate his future 12 month’s cost based on ACTUAL annual usage times the tariff. From this calculation, deduct/add any credit/debit balance. Divide this figure by 12 and you have a monthly DD payment.

The supplier will discount the monthly DD payment by £66/67 from October to March.

All the above is hypothetical. We all pay for the ACTUAL energy that we use at the agreed tariff price.

[Deleted User]

OP - you have completely misunderstood what the price cap is and how it will affect you. As pointed out above, it is a cap on the price of each unit. You still need to pay for everything you use and your total cost will be what it will be.

Also, as to your second problem - all smart meters are compatible with an IHD. You might need to be more specific with your complaint.

dunstonh

 I am struggling to fathom how my energy company can increase my full monthly payments to more than £208 per month when the price is capped at £2500 pa.

Because there is no cap at £2500 p.a.  The cap is not an all-you-can-eat cap.

The £2500 p.a. is a synthetic figure based on averages to give the price it would be for a typical household.  You are statistically unlikely to be typical.      The unit price multiple by your units used gives you the annual cost for you.

 I am £200 in credit and just been informed that my new payment will be just over £200 per month once the £66 credit is applied...surely that takes my annual projection beyond the price cap?

£200 credit is low for this point of the year if that supplier covers both electric and heating.   This could be partly why your monthly figure needs to increase.

Tell us your meter readings covering a year apart and we will tell you whether the figure is in the ballpark or not.

ljffoxy

Thanks for the assistance, not sure how it can be a cap if you can go over it...but there you go. The energy industry is always baffling and they talk in riddles, one minute I get data in kwh, next in £ so I don't really know if I'm coming or going. I've gone from £65 per month (probably was too low as came out of winter in debit by £170, however now £200 in credit) to £270 per month now. Same boat as everyone else I assume. I need to go over my bills properly and work out the projection myself. One issue I have is that they state my usage for August this year is significantly higher from last year, which is impossible and leads me on to my 2nd issue regarding in house display units. 

As for my 2nd issue, they have explicitly told me that the smart meter installed is a 1st gen one that they don't make in house display units for anymore, so I can't have one and they won't upgrade it to a 2nd gen one.. yet. This is the response I keep getting fobbed off with. 

ljffoxy

One other thing to note, is that I'm not a typical household. I'm in a new build property, there's only me but I do work from home 90% of the time. I don't have several washing loads per week, or multiple rooms with lights and tellies on like a family household would have so I'm a bit perturbed by the projection that takes me over the government's recommended average household. 

MWT

ljffoxy said:

Thanks for the assistance, not sure how it can be a cap if you can go over it...but there you go.

It is not entirely your fault as there is far too much talk in the media about the £2,500 figure without explaining what it means.

There is a cap on the price per kWh and the standing charge, so the cap is real and does exist. ...but there is not a cap on your total bill.

The £2,500 figure is just an example of the national average annual bill for someone using 12,000kWh of gas and 2900kWh of electricity, and paying by DD.

Your bill will not be £2,500, because you are not using exactly 12,000kWh of gas and 2,900kWh of electricity, and you will not pay the national average price per kWh, you will pay the prices for your region.

Hope this helps...

BUFF

ljffoxy said:

Thanks for the assistance, not sure how it can be a cap if you can go over it...but there you go. The energy industry is always baffling and they talk in riddles, one minute I get data in kwh, next in £ so I don't really know if I'm coming or going. I've gone from £65 per month (probably was too low as came out of winter in debit by £170, however now £200 in credit) to £270 per month now. Same boat as everyone else I assume. I need to go over my bills properly and work out the projection myself. One issue I have is that they state my usage for August this year is significantly higher from last year, which is impossible and leads me on to my 2nd issue regarding in house display units. 

As for my 2nd issue, they have explicitly told me that the smart meter installed is a 1st gen one that they don't make in house display units for anymore, so I can't have one and they won't upgrade it to a 2nd gen one.. yet. This is the response I keep getting fobbed off with. 

It is a cap because the rates are capped. The £2500 that gets quoted is an illustrative figure based on a "typical" household, it itself is not a cap. The media misrepresent things.

I would not have thought that they were required to switch out your meter yet. Have you thought of using something like the Bright app.? Or you could physically go & read the meter(s) itself?

The_Fat_Controller

How do you heat your home ?

Very surprised a new build would have a SMETS 1 meter.

ljffoxy

BUFF said:

ljffoxy said:

Thanks for the assistance, not sure how it can be a cap if you can go over it...but there you go. The energy industry is always baffling and they talk in riddles, one minute I get data in kwh, next in £ so I don't really know if I'm coming or going. I've gone from £65 per month (probably was too low as came out of winter in debit by £170, however now £200 in credit) to £270 per month now. Same boat as everyone else I assume. I need to go over my bills properly and work out the projection myself. One issue I have is that they state my usage for August this year is significantly higher from last year, which is impossible and leads me on to my 2nd issue regarding in house display units. 

As for my 2nd issue, they have explicitly told me that the smart meter installed is a 1st gen one that they don't make in house display units for anymore, so I can't have one and they won't upgrade it to a 2nd gen one.. yet. This is the response I keep getting fobbed off with. 

It is a cap because the rates are capped. The £2500 that gets quoted is an illustrative figure based on a "typical" household, it itself is not a cap. The media misrepresent things.

I would not have thought that they were required to switch out your meter yet. Have you thought of using something like the Bright app.? Or you could physically go & read the meter(s) itself?

It's the real-time info I want, like how efficient is my tumble drier? If I put my massage chair on, how much juice is it using? I have been looking for something that would substitute and in house display linked to a smart meter but everything always points back to the energy supplier. I will try the bright app thanks.