The energy price cap will rise by 20% in January 2023, regulator Ofgem announced this morning – but don't worry, what you pay shouldn't change substantially. While the price cap is set to increase to £4,279/year for a typical household, the Government's energy price guarantee scheme means typical bills will remain at £2,500/year on average until April 2023.
Read the full story here:
'Energy price cap to rise in January – your energy rates could change slightly, but it is largely meaningless for your bill'
I am interested in what exactly this means. With all the cap variations over different payment types and meter types it is going to be hard for BEIS to minimise this.
If the maths in the background changes the balance between the regions (the variance at the moment is only +-£40 or so), then the same slight variation changes might persist through into the EPG.
If the discount of 17p didn't rise then everyone would be much worse off, increasing the discount is surely the only way to keep people's bills at the current EPG level.
I'm very confused
We are now pying close to 400 every month
Does this mean with the rise you/MSE/OP mentions and any subsequent rises won't make a big difference to our payments?
BTW - we are with EDF, dual fuel, dd payments and the variable rate
The price-per-unit change in January (based on the OFGEM change that this post talks about) can be ignored.
If the amount you use changes, your bills will still change.
April is a different matter - the price per unit will probably rise a noticeable amount for everyone.
I could be missing something though because it's being made out to be more complicated than that.
The OFGEM cap is rising. This doesn't mean that any supplier must raise their tariff rates at all, particularly as they couldn't pass any rise on to customers and the money from the government is based on their costs, not their rates.
It was long established that suppliers could have rates under the cap, it's only a cap after all, not a mandated tariff. If they all just leave their tariffs alone in January, nothing needs to change.
Only exception would be if there are any tariffs still around that were "cap minus X", they would have this rise baked in and would need modification, but I don't know of any that are still standing.
edit: Having just written this exception, I notice that Saga has written on another thread that they have exactly one of these variable cap tracking tariffs!