Price per kWh for electricity from April 2023?

willbmd

Hey all,

With the increase coming in April, is there any information as to what the maximum price per kWh will be?

Thanks,

Will

luvchocolate

I'm working on plus 20%

willbmd

luvchocolate said:

I'm working on plus 20%

Alright, so we could potentially be looking at 40-41p per kWh.

On the gov website it states "Energy Price Guarantee will be extended from April 2023 until April 2024".  Does that mean we could be paying this rate until then? 

EssexHebridean

the forecasts seem to suggest that after seeing an increase in April (we already know that there will be an increase of 20% to the existing EPG level at that stage I think) we may - with luck - see a drop in July, although it's far too early I believe to have any certainty on that. 

Of course, how this will end up affecting unit rates, standing charges etc is another question entirely. 

michaels

Annoyingly the energy companies could 'buy forward' energy now to give a price from July onwards at the current EPG level but the rules of the price cap do not permit that.

I suspect the rules of the current EPG also mean that they can not yet offer cheap(er) 12m fixes based on these forward prices as they will then lose EPG support for the April-June period.

tifo

willbmd said:

On the gov website it states "Energy Price Guarantee will be extended from April 2023 until April 2024".  Does that mean we could be paying this rate until then? 

Yes, but the price cap will be average £3,000 from April (up from the current £2,500) and the EPG will apply to that. Actual charges will be much higher then minus the EPG to give your bill, like they do now.

michaels

tifo said:

willbmd said:

On the gov website it states "Energy Price Guarantee will be extended from April 2023 until April 2024".  Does that mean we could be paying this rate until then? 

Yes, but the price cap will be average £3,000 from April (up from the current £2,500) and the EPG will apply to that. Actual charges will be much higher then minus the EPG to give your bill, like they do now.

The price cap will be above 3k from April to June but likely below form July.  The EPG will reduce the price below the cap to a 3k annual rate from April to June - from July it is likely that the EPG will no longer apply as the cap will be lower than the EPG.

SnakePlissken

willbmd said:

Hey all,

With the increase coming in April, is there any information as to what the maximum price per kWh will be?

Thanks,

Will

Cornwall insight have predictions here..

https://www.cornwall-insight.com/press/drop-in-wholesale-energy-prices-sees-price-cap-predictions-fall-below-the-energy-price-guarantee-for-second-half-of-2023/

based on below with energy cap at £2800 its 38.68 p per kw and £3545 its 55.29p  per kw

WIth gov cap set at £3000  likely 44 - 46p  per kw maybe?