energy price cap

Scot_39

I often wonder what the IQ is for the average journalist

Or perhaps the average reader of their output.

Or to be fairer still - the average interest level of their readers.

As to be fair the media often need to keep things simple - but they should at least be clear on the basis of the figures they are quoting.

For instance the real epg rates had 3 tables by payment method across all 14 regions  - none would quote that in full detail as only tge realky interested would read it.

But for many only interested in their own bills - only their regional SC and unit rates really matter (and those even changed even when under the "fixed" average "£2500" EPG discount period).

And people should get notified of them every quarter now if on an Ofgem capped tariff anyway.


The headline cap (or rather more accurately caps) is based on only one of Ofgems so called TDCVs - they produce 3 sets - low medium and high - for each of gas, single rate meter electric and multirate electric meter type. 

And that medium use cap is iirc for a far higher consumption than their own average data across all UK households shows.

For full set and changes 

https://www.ofgem.gov.uk/publications/decision-typical-domestic-consumption-values-2023

And that seperate multirate electric - so called profile class 2 - cannot even split that critically between those reliant on electric heating or those no longer on multirate tariffs (e.g. e7, e10 or rts etc meter billed at single rate) - its apparently just meter class.

So those TDCVs are even more meaningless for those with electric heating. 

And neither the old or current TDCVs  allow for the lengths I suspect many have gone to to drop their consumption since prices rose dramatically last spring (Apr 22 saw the 1st big double digit percentage rise to £1971)

As the data is based on consumption levels from 2019 and 2021.  (It would  normally have been 2020 and 2021 but they excluded 2020 due to lockdowns and a resultant spike in consumption that year.)

So when you get articles saying things like typical bills have dropped by £577,  from the "mythical" £2500 EPG - the cap £1923 DF DD regional average  - I suspect many in reality - the average / median user - will be saving far far less.

And without EBSS at July rates - I worked out I'd be spending c£300 more NET (and as Jan rates are forecast by CI to be heading back towards July rates the Oct cap brief respite will only cut that a little).

And I will probably use a little more this year than last - as I cut temps too low for comfort - even despite layering up 3up 2 down - even including at one stage fingerless gloves whilst using keyboards - to save money last winter.  

MattMattMattUK

debitcardmayhem said:

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

The average IQ of the population is 100, however journalists are are likely higher than average, although probably not that much higher. The real issue is that they are appealing to those of lower or average IQ, content is dumbed down, people are told what to think rather than being present with information and allowed to draw their own conclusions, although there obviously dangers with people incorrectly drawing conclusions as well.

The real issue is that if you have had the misfortune of having to regularly interact with people of average intelligence you realise just how stupid average is. 

born_again

Trouble is average journalist, is only interested in the clicks their article gets. Not anything else these days when the vast majority read online.

[Deleted User]

Sorry but the price cap and price guarantee, not to mention the way we pay for energy generally IS STUPIDLY complicated and full of anomalies. 

I’m a university educated 58 y o man who runs his own business, working with computers and technology, but their complexities are NOTHING compared to this ridiculous way we pay for energy. 

I read ML’s advice but it’s total brain fog territory. 

For instance, my kWh usage is capped at 27p but OVO is charging me 27.58p per kWh.  

Similarly, my standing charge is 53.29p but the cap is set at 53p. 

Either a cap is a cap or it’s not. I just don’t get it. 

I bet there’s an answer. And I bet it isn’t simple. 

Gerry1

The cap varies regionally.  The media usually quote just the average figure for Great Britain.

QrizB

[Deleted User]

I bet there’s an answer. And I bet it isn’t simple. 

There's an answer

It's simple.

See the explainer link in my signature.

Spoonie_Turtle

[Deleted User] said:

Either a cap is a cap or it’s not. I just don’t get it. 

I bet there’s an answer. And I bet it isn’t simple. 

There are technically slightly different caps for every region and every payment method. 

What's quoted in the media is a mathematical average of the regions, for people paying by Direct Debit.

[Deleted User]

Regional variations? That’s crazy. Sorry but I’m already bad tempered middle aged git but to hear this just rubs salt into an already gaping wound created by this ridiculous country. And yes, if I could leave I would. 

Nothing works. Nothing makes sense. But I thank you for your responses. At least that bit works! 

Netexporter

Regional variations?

They reflect the differing distribution costs for different parts of the country. Largely rural areas tend to be more expensive because of the overhead distribution, which is more expensive to maintain. Also distance from the sources of generation are taken into account, although that is changing as we move to more distributed generation, from renewables, away from the old centralised generation adjacent to the coal-fields.

EssexHebridean

Deleted_User said:

Sorry but the price cap and price guarantee, not to mention the way we pay for energy generally IS STUPIDLY complicated and full of anomalies. 

I’m a university educated 58 y o man who runs his own business, working with computers and technology, but their complexities are NOTHING compared to this ridiculous way we pay for energy. 

I read ML’s advice but it’s total brain fog territory. 

For instance, my kWh usage is capped at 27p but OVO is charging me 27.58p per kWh.  

Similarly, my standing charge is 53.29p but the cap is set at 53p. 

Either a cap is a cap or it’s not. I just don’t get it. 

I bet there’s an answer. And I bet it isn’t simple. 

It's an interesting one though isn't it - I am slightly younger than you, left school at 16, and yet I can understand the system pretty well - certainly well enough to be able to keep track of my own use and help out family and friends who are struggling to understand bills when needed. Must be something to do with different sorts of brains I guess. 

Regional variations are perfectly logical too - there are massive variations in what the costs of supply are, for a start. And because there are those variations, it's not practical for the press to detail every capped rate in the country. As a result, they use an average, which will be a little more than some people pay, and a little less than others. So there you go - as it turns out, it is remarkably simple!