From April 2023 what will the new revised gas and electric units per kwh be?

mrsg1990

Just trying to get an idea, thanks in advance 

QrizB

No-one knows, they won't be announced until much closer to the time.

Cornwall Insight (an energy consultancy) have recently published a forecast - essentially their best guess - and it works out like this:

Q2 2023 is the April 2023 forecast.

CI's forecasts are subject to regular revision and could go up or down considerably over the next three to four months.

[Deleted User]

What assumptions would you like to make?

Does standing charge change?

Do both fuels go up by the same percentage? Same in pounds? Same change in unit price in pence? Or does the balance between the two change?

facade

No-one knows.

Hunt said that the "average household" will pay £3000 a year. Whether this will be because of a handout to offset some of the bill, or a cap, or both hasn't been revealed.

My money (literally) is on a high cap, and a handout sufficient to offset the extra of an "average household's" bill over £3000.

By then of course, the "average household" will be using far less energy (then they can use lower consumption figures from April to reflect current trends), so the unit price could be astronomical..........

housebuyer143

I saw an estimated one and it involved lower standing charges and higher unit rates. I'm not sure if the government is intervening.

MikeJXE

We don't know what the price will be or why it should be higher. Can someone explain windfall tax ? I understand what they are doing the question is WHY.
I would have thought if a company is making lots of profit it is selling goods or services with a high mark up so they have room to lower prices. Energy companies are governed by Ofgem who set the maximum rate they can charge so WHY isn't the cap lower in the first place ?

[Deleted User]

MikeJXE said:

We don't know what the price will be or why it should be higher. Can someone explain windfall tax ? I understand what they are doing the question is WHY.
I would have thought if a company is making lots of profit it is selling goods or services with a high mark up so they have room to lower prices. Energy companies are governed by Ofgem who set the maximum rate they can charge so WHY isn't the cap lower in the first place ?

Because the people making the profit are not the people you are paying your bill to.  The cap allows a very small profit (either 1.6% or 1.9%, I forget which) for your supplier - not really anything to reduce there.

It would be like telling Tesco to cap your bill at the checkout when Nestle were making all the money.

MikeJXE

Got ya, thanks 

BUFF

The energy supply companies are already only allowed to make ~1.9% profit on domestic energy at SVT & many of them are not even making that, they aren't making fortunes supplying you & me.
The energy exploration & production companies, now that is a different matter...

[Deleted User]

BUFF said:

The energy supply companies are already only allowed to make ~1.9% profit on domestic energy at SVT & many of them are not even making that, they aren't making fortunes supplying you & me.
The energy exploration & production companies, now that is a different matter...

E&P profit is a strange one, just like drug development.

Yes, sometimes the operating profits are huge, but also sometimes there are equivalently large losses. Or one geographic area is up and another is down.

Its not a great precedent to say “please spend lots of money doing exploration and development, if you make a loss then that’s tough, but if you make a profit we will call you evil and take it away”, especially when this seems to be combined with “we want you to pay this special tax to us if you make profit anywhere in the world “.

 There’s certainly an argument for making it more equal, stop the massive numbers, but then it needs to work the other way too.