energy price cap

samuela66

Hi

I dont know if I understand the energy price cap properly, does it mean that they cannot charge me more per year that the 1900, no matter how much I use....I am confused .

thanks
sam

Netexporter

No. It is a cap on the unit price (kWh) and the daily/standing charge. The more you use the more you will pay.

MSE_James

We have a guide here which may help: https://www.moneysavingexpert.com/utilities/what-is-the-energy-price-cap/ 

Bungle73

Is there some reason the media insists on keep given out average usages figures in their headlines and articles, instead of the much more accurate and relevant unit prices? As we see, it only confuses people.

Krakkkers

The media don't understand it either.

Netexporter

Bungle73 said:

Is there some reason the media insists on keep given out average usages figures in their headlines and articles, instead of the much more accurate and relevant unit prices? As we see, it only confuses people.

Most (maybe a higher percentage in more recent times) people don't take an interest in their energy consumption (until it hits them in the pocket) and don't know what a kWh is. They don't understand the bill, apart from the bottom line. It is a similar phenomenon to people thinking that a quoted direct debit payment will cover their consumption.

To be fair, the media are getting a bit better about quoting the actual prices, but the mythical "average cost" is a handy shorthand for headlines.

Bungle73

Netexporter said:

Bungle73 said:

Is there some reason the media insists on keep given out average usages figures in their headlines and articles, instead of the much more accurate and relevant unit prices? As we see, it only confuses people.

Most (maybe a higher percentage in more recent times) people don't take an interest in their energy consumption (until it hits them in the pocket) and don't know what a kWh is. They don't understand the bill, apart from the bottom line. It is a similar phenomenon to people thinking that a quoted direct debit payment will cover their consumption.

To be fair, the media are getting a bit better about quoting the actual prices, but the mythical "average cost" is a handy shorthand for headlines.

I got taught about KWh and reading household energy meters at school. This was in the 1980s, so a while ago. The National Curriculum was just coming in as I left, so I've no idea if it's included in that. It should be.

400ixl

Regional variances in the standing charge and kWh don't help in explaining it either as the numbers will only be recognised by a few against their bills.

The media do seem to be getting better at reminding people that it is not a total cost cap and if you use more than the average you will pay more.

Explaining the fixed cost (standing charge) and variable charge (kWh unit rate) in 20 seconds is much harder than the average cost, so the latter is used.

debitcardmayhem

I often wonder what the IQ is for the average journalist🫨

[Deleted User]

400ixl said:

Regional variances in the standing charge and kWh don't help in explaining it either as the numbers will only be recognised by a few against their bills.

The media do seem to be getting better at reminding people that it is not a total cost cap and if you use more than the average you will pay more.

Explaining the fixed cost (standing charge) and variable charge (kWh unit rate) in 20 seconds is much harder than the average cost, so the latter is used.

In fairness, when reporting tariff changes, some form of assumption has to be made. I am not sure that a comparison using standing charges and unit prices would be a better option when this forum is littered with posts from people who think that the monthly DD payment is their actual bill.

Spoonie_Turtle

[Deleted User] said:

400ixl said:

Regional variances in the standing charge and kWh don't help in explaining it either as the numbers will only be recognised by a few against their bills.

The media do seem to be getting better at reminding people that it is not a total cost cap and if you use more than the average you will pay more.

Explaining the fixed cost (standing charge) and variable charge (kWh unit rate) in 20 seconds is much harder than the average cost, so the latter is used.

In fairness, when reporting tariff changes, some form of assumption has to be made. I am not sure that a comparison using standing charges and unit prices would be a better option when this forum is littered with posts from people who think that the monthly DD payment is their actual bill.

We already get posts not understanding that the average unit rate and standing charge quoted is a theoretical average - especially when they're in a region with one of the higher standing charges.  I can only imagine the extra work for suppliers if the media used those average figures and people noticed their unit rate and/or SC was higher; the CS teams would be tied up fielding all the complaints (and likely being abused with rants about greedy suppliers lining their pockets at our expense).

Which is annoying, because the media being able to talk in average UR and SC would be much more meaningful than using the hypothetical dual fuel 'typical' household's annual bill.