Oil £100 payment info

frugal90

Woodpellets up 3 X now, 1 ton £600 equivalent to 400 l oil

Qyburn

People using electric heating will benefit from 17p/kWh Government subsidy on their heating energy for six months. That's likely to be a whole lot more than £100. 

Fredw56

I have been in contact with our electricity supplier Ovo this morning. They say they know nothing yet about the oil user support payment. To quote their exact words it has not been passed over to them yet. So it looks as if the government is dragging its heels over this. I wonder if it is going to be “lost” in the Hunt-for-cuts event on Friday.

Seems unfair that oil and Lpg users get so much less help that mains gas users. Oil has cost us 84.2p/L for the last delivery compared to 38p for the same time last year and 28.5p the year before that. The second delivery we will need in February will cost even more It always cost more than the August order anyway but we are definitely concerned about it especially as oil has to be paid for at the point of ordering.

QrizB

Fredw56 said:

Seems unfair that oil and Lpg users get so much less help that mains gas users. Oil has cost us 84.2p/L for the last delivery

At that price, your oil is about 20% cheaper than mains gas.

MattMattMattUK

Qyburn said:

People using electric heating will benefit from 17p/kWh Government subsidy on their heating energy for six months. That's likely to be a whole lot more than £100. 

However their cost per kWh of heat will still be more than your kWh of heat provided by oil/gas/LPG/solid fuel, so who wins?

Fredw56

QrizB said:

Fredw56 said:

Seems unfair that oil and Lpg users get so much less help that mains gas users. Oil has cost us 84.2p/L for the last delivery

At that price, your oil is about 20% cheaper than mains gas.

Which reinforces my point. How much is the subsidy under the EPG for kWh of mains gas? Multiply that by the use of the average average home and you will get a whole lot more than £100. as follows

The energy price guarantee reduced the national average unit rate for gas by 4.2p per kWh.
If the average home is using 12000 kWh per year for heating and hot water the subsidy derived from the scheme would be £504 pa or £252 for the duration of the existing EPG.
The average gas user is therefore going to get a subsidy of £252 paid for by everyone in increased taxation. The profligate gas user will gain even more. By comparison the oil or LPG user will get £100 of help. So irrespective of your statement about the comparative cost of the energy content of the base fuel the gas user is getting 2.5 times the help that an oil user will.

As it happens our oil boiler consumes approx 1400 litres per year, roughly gross content 15000 kWh, heating a 2 bed bungalow. So our £100 will give us a subsidy per kWh of 0.67p per kWh. Hardly reasonable compared to the 4.2p per kWh given to gas users, some of whom may be profligate. The profligate will gain for every extra kWh they waste. 

QrizB

Fredw56 said:

QrizB said:

Fredw56 said:

Seems unfair that oil and Lpg users get so much less help that mains gas users. Oil has cost us 84.2p/L for the last delivery

At that price, your oil is about 20% cheaper than mains gas.

Which reinforces my point. 

Your point, however, is misplaced. The purpose of the EPG scheme is not to subsidise every kWh of heat by the same amount, or to pay the same subsidy to every household.

Spoonie_Turtle

Fredw56 said:

QrizB said:

Fredw56 said:

Seems unfair that oil and Lpg users get so much less help that mains gas users. Oil has cost us 84.2p/L for the last delivery

At that price, your oil is about 20% cheaper than mains gas.

So irrespective of your statement about the comparative cost of the energy content of the base fuel the gas user is getting 2.5 times the help that an oil user will.

No, the actual point is that mains gas users, even with the subsidised rates, are still paying more per kWh of heat than oil users at the moment.  Electricity users are paying more still (e.g. if a heat pump is 250% efficient, at EPG national average rate that's 13.6p/kWh output.  That 250% is also a big IF, nowhere near guaranteed especially for people in rented housing who've had them installed with the barest of instruction and set up to be always warm instead of actually efficient).

Fredw56 said:
 The profligate will gain for every extra kWh they waste. 

While they might be subsided more in total, they're still having to pay more anyway because of the higher price.

mmmmikey

Great news - instead of a promise of £100 without any information about who will be eligible and when they will be paid, we now have a promise of £200 without any information about who will be eligible and when they will be paid