E.ON Next Tariff Renewal

Chrysalis

Mstty said:

Chrysalis said:

Have seen reports that EON are actually tweaking prices, reducing unit price and increasing SC, so I suggest EON customers check to make sure they actually staying at same levels.

That will be the same for all suppliers with the new Standing Charges announced by Ofgem for 1st April then the Government EPG taking amounts of the kWh prices.

Have the government explained why they doing this?

There has been financial entities and charities lobbying for SC to come down, and to then go the opposite way seems only a means of to give a higher assured income to the suppliers (to counter people reducing bills by cutting down usage).

I didnt notice on the table, as that table doesnt seem to show the previous prices as a comparison.

If someone has the old prices to put next to the new ones so can see the extremity of the change it would be nice. 

Found this, assuming these are national average quoted figures.

https://www.octopusreferral.link/octopus-energy-tariffs/

• Electricity –  Will go down from 34.04p per kWh to 33.21p per kWh. Whilst the standing charge will increase from 46.4p per day to 52.97p per day.
• Gas – Will do down from  10.33p per kWh to 10.31p per kWh. Whilst the standing charge will increase from  28.5p per day to 29.11p per day.

So a zero usage bill increase of about £2 month for electric.

Someone using an average of under 8 units a day of electric would be worse off, so the turning point seems to be circa 8 units a day on electric?

Gas just looks to be an increase for almost everyone except perhaps extremely high usage, the reduction on unit rate barely registers. The changes here seem like minor tweaks compared to electric.

gt94sss2

Chrysalis said:

Mstty said:

Chrysalis said:

Have seen reports that EON are actually tweaking prices, reducing unit price and increasing SC, so I suggest EON customers check to make sure they actually staying at same levels.

That will be the same for all suppliers with the new Standing Charges announced by Ofgem for 1st April then the Government EPG taking amounts of the kWh prices.

Have the government explained why they doing this?

There has been financial entities and charities lobbying for SC to come down, and to then go the opposite way seems only a means of to give a higher assured income to the suppliers (to counter people reducing bills by cutting down usage).

I didnt notice on the table, as that table doesnt seem to show the previous prices as a comparison.

If someone has the old prices to put next to the new ones so can see the extremity of the change it would be nice.  As I am not on SVR I wont get such details from Octopus, so reliant on people sharing the info here.

From the Ofgem website:

From 1 April the equivalent per unit level of the price cap to the nearest pence for a typical customer paying by direct debit will be 51p  per kWh for electricity customers and a standing charge of 53p per day. The equivalent per unit level for a typical gas customer is 13p per kWh with a standing charge of 29p per day.  

Currently: From 1 January the equivalent per unit level of the price cap to the nearest pence for a typical customer paying by direct debit will be 67p per kWh for electricity customers and a standing charge of 46p per day. The equivalent per unit level for a typical gas customer is 17p per kWh with a standing charge of 28p per day. 

The price cap figures are worked out by Ofgem according to a set procedure at https://www.ofgem.gov.uk/publications/ofgem-confirms-changes-price-cap-methodology-and-frequency-ahead-new-rate-be-announced-later-month

The government then amend their EPG subsidy so that the average bill is still reduced to £2,500

[Deleted User]

Chrysalis said:

Have the government explained why they doing this?

• Electricity –  Will go down from 34.04p per kWh to 33.21p per kWh. Whilst the standing charge will increase from 46.4p per day to 52.97p per day.
• Gas – Will do down from  10.33p per kWh to 10.31p per kWh. Whilst the standing charge will increase from  28.5p per day to 29.11p per day.

Throughout the period of EPG, I 'm sure the government has decided that SC should be set in line with the Ofgem 'cap' calculations.  Not saying that it is right but rather a continuation of how it has been done and will continue to be done.  

Scot_39

Chrysalis said:

Mstty said:

Chrysalis said:

Have seen reports that EON are actually tweaking prices, reducing unit price and increasing SC, so I suggest EON customers check to make sure they actually staying at same levels.

That will be the same for all suppliers with the new Standing Charges announced by Ofgem for 1st April then the Government EPG taking amounts of the kWh prices.

Have the government explained why they doing this?

There has been financial entities and charities lobbying for SC to come down, and to then go the opposite way seems only a means of to give a higher assured income to the suppliers (to counter people reducing bills by cutting down usage).

I didnt notice on the table, as that table doesnt seem to show the previous prices as a comparison.

If someone has the old prices to put next to the new ones so can see the extremity of the change it would be nice. 

Found this, assuming these are national average quoted figures.

https://www.octopusreferral.link/octopus-energy-tariffs/

• Electricity –  Will go down from 34.04p per kWh to 33.21p per kWh. Whilst the standing charge will increase from 46.4p per day to 52.97p per day.
• Gas – Will do down from  10.33p per kWh to 10.31p per kWh. Whilst the standing charge will increase from  28.5p per day to 29.11p per day.

So a zero usage bill increase of about £2 month for electric.

Someone using an average of under 8 units a day of electric would be worse off, so the turning point seems to be circa 8 units a day on electric?

Gas just looks to be an increase for almost everyone except perhaps extremely high usage, the reduction on unit rate barely registers. The changes here seem like minor tweaks compared to electric.

Last years SC increase was largely SoLR - which has actually reduced according to the Ofgem price cap (c£61 Jan  to c£19 iirc for Apr).

But that has been swallowed up by non SoLR network costs.

There is a new methodology for the calcs on their site.

But I don't expect the SC issue to go away - as the electricity grid needs major upgrades in several places in the next few years - and we the consumers will pay one way or the other.  To connect to the new wind farm locations - and then to distribute it to suitable points on grid - to deliver to homes. 

Including new Eastern HVDC links from Scotland - already an existing West coast link to Wales.

https://en.wikipedia.org/wiki/Eastern_HVDC

This BBC article

https://www.bbc.co.uk/news/uk-scotland-highlands-islands-63984935

Suggests EGL2 may go larger - 4 GW 2 cables not 2GW/1 etc.