Energy formula

JohnWaynme55

I have contacted my energy supplier to ascertain why my gross kwh rate for gas has gone up by 40.6% when the average cap has risen by only c27%, £1971 to £2500.
They advise that as this is proprietary information, and confidential, they cannot provide the info, or in deed the formula they have used to calculate the rate. 
I find this unacceptable - surely as I am the bill payer I have a right to understand how my revised charges have been calculated? 
Does anyone have the answer to any of this? 

MattMattMattUK

JohnWaynme55 said:

I have contacted my energy supplier to ascertain why my gross kwh rate for gas has gone up by 40.6% when the average cap has risen by only c27%, £1971 to £2500.
They advise that as this is proprietary information, and confidential, they cannot provide the info, or in deed the formula they have used to calculate the rate. 
I find this unacceptable - surely as I am the bill payer I have a right to understand how my revised charges have been calculated? 
Does anyone have the answer to any of this? 

What do you mean by "gross kwh rate"? do you mean the unit rate per kWh ex VAT, some other figure? Most people tend to use the rate that they are billed which includes VAT. 

There is nothing based on percentages that is relevant in this scenario. The energy provider does not need to provide you with the algorithm they use, you are at liberty to make our own calculations and have have a discussion with them if your figures differ from theirs and they may or may not agree to change the monthly Direct Debit figure if they agree with your calculations. 

Your last bill will state your annual usage in kWh, this will be multiplied by the current tariff (likely the EPG rate) and divided by twelve. Debt or credit will be factored in, as will where you are in the year in relation to a credit (eg. if you have low/no credit going into winter your monthly amount will be higher). 

[Deleted User]

JohnWaynme55 said:

I have contacted my energy supplier to ascertain why my gross kwh rate for gas has gone up by 40.6% when the average cap has risen by only c27%, £1971 to £2500.
They advise that as this is proprietary information, and confidential, they cannot provide the info, or in deed the formula they have used to calculate the rate. 
I find this unacceptable - surely as I am the bill payer I have a right to understand how my revised charges have been calculated? 
Does anyone have the answer to any of this? 

Gosh, I wish that Ofgem would stop using percentages as it just confuses consumers. Information on the metrics that are used to calculate the Ofgem Cap are available below:

https://www.ofgem.gov.uk/publications/default-tariff-cap-level-1-october-2022-31-december-2022 

Note this is an Ofgem Cap and it has nothing to do with individual suppliers or their algorithms. The Cap price is currently abated by the Government’s Energy Price Guarantee.

macman

What tariff were you on, and what tariff are you on now?
The much-hyped 27% cap only applies to SVT.
If you moved to an expensive fix then the rate may well have gone up by 40% or more.

JohnWaynme55

Thanks All for your contribution.
Yes, gross kwh is in deed the rate inc. VAT, net without. I am of on SVT. Matt I get your comment re percentages,  but this doesn't  answer my main point. Unfortunately you've only told me what the supplier has advised. Reference to DD and EPG are not really relevant in my query - I appreciate EPG will apply. My query is simply whether their is a relationship between increase in price cap i.e. 26.8% and my increase in gas kwh rate of 40.6%, and if not, why not? And then how have they arrived at my new kwh figure? To date no one has been able to confirm or otherwise, whether it be the consumer bodies or my supplier! Thanks All once again!

molerat

Your new kWh figure is (pretty much with some very small leeway) dictated by OFGEM, as simple as that and is indeed a 40% increase on unit charge from the previous cap.  The increase of 26.8% is an average increase of bills based on 12000 kWh gas and 2900 kWh electric.  Stop taking press announcements as gospel and look behind the headlines.

timjim

This is because 27% is for the "average" user. But gas prices rose by about 40% and electricity by about 20%

JohnWaynme55

I was looking for a link where there is none! Cheers! 

BooJewels

The key is perhaps what you were paying before 1st October - your starting point.  The price you're now paying is determined by the Government - with some small regional and supplier variations - it was a bit more of free for all before then.

For example, my own gas is almost 200% more expensive than a year ago, as I was on a very good fix of a bit over 3p per kWh until the summer and now paying around 10.3p.  Everyone has ended up in much the same place, but possibly from different starting points.  Plus the published headline rates are averages of averages.

JohnWaynme55

The confusion, or my interpretation, is where the problem was. Where I thought there was a correlation between the price cap increase (26.8%) and the rate of increase in kwh rate to 10.33p, which is a 40% increase, there apparently isn't!
Appreciate your input. Cheers