Price Cap reporting - save £278 a year? Not really. More like about £25 during April-June.

What_time_is_it

The reporting of the energy price cap really annoys me. I understand that it's a balance between accuracy and simplicity, but a price that changes 4 times a year shouldn't really be reported in terms of annual savings. Particularly for a product where usage is much higher in winter than in summer.

la531983

They have to report it in that way because the general public are generally idiots.

What_time_is_it

la531983 said:

They have to report it in that way because the general public are generally idiots.

I think most people are much smarter than most give them credit for. I don't like it when things are dumbed down. I do get the need for a simple approach of course, but I think this could be done within a quarterly time frame.

e.g. "Energy prices have fallen for the next quarter. On average this means that your energy costs will be cheaper/more expensive than the previous quarter, but obviously the changing seasons mean that you will use more/less compared to the previous quarter. The saving/increase compared to if prices had stayed the same would be about £x (in this case a saving of about £25). Compared to the same quarter last year the price is £x more/less expensive."

I think that's quite straightforward. And then always include a reference to unit costs and standing charges for those that want more detail.

la531983

The very fact they dont give the "cap" in terms of the max unit rate more or less confirms they think the general public are idiots, tbh. 

Scot_39

When they are changing the electric SC by c6.7p on average and in one region by a whopping c14p according to Ofgem regional tables (unless initial release wrong like last year) standing charge and unit rate.

To be fair though Ofgem do give SR regional averages for SC and kWh in announcements - its the press who concentrate on the cap figure in headlines.


And BBC says it includes £28 not the recent consultation £16 figure for estimated £3.1bn debt. That's 7.7p per day.  Doesnt say if via SC or unit rates - or how split electric vs gas - anyone ?

Answer in another thread suggests unit rate - as cap SC change appears linked to changes in distribution charges.

https://forums.moneysavingexpert.com/discussion/comment/80617884/#Comment_80617884

molerat

https://www.ofgem.gov.uk/energy-price-cap

Changes to current charges

Unexpected temporary cost adjustments +£17

Social and environmental schemes +£30

Levelling pre pay to DD +£10

Network costs -£13

Wholesale cost of energy -£265

Overall change -£238

The additional cost of running pre payment has been passed on to everyone.

superkoopauk

molerat said:

The additional cost of running pre payment has been passed on to everyone.

As expected - and might fly under the radar given the headlines

What_time_is_it

superkoopauk said:

molerat said:

The additional cost of running pre payment has been passed on to everyone.

As expected - and might fly under the radar given the headlines

This is a good thing. Removing the penalty previously paid by the most vulnerable/unable to pay, and spreading the cost between everyone. I actually like this.

This level of detail is good in a more in depth report. I just wish that the main media outlets would agree a simple way of reporting the price changes based on quarterly differences, with a comparison to if there was no change in prices, and a comparison to the same quarter in the previous year(s).

MattMattMattUK

superkoopauk said:

molerat said:

The additional cost of running pre payment has been passed on to everyone.

As expected - and might fly under the radar given the headlines

Exactly this, enough distraction and hope people miss the various elements of cost, the same with the unpaid bill surcharge added because the government/Ofgem refuse to let energy suppliers deal properly with non-payers. 

What_time_is_it

MattMattMattUK said:

superkoopauk said:

molerat said:

The additional cost of running pre payment has been passed on to everyone.

As expected - and might fly under the radar given the headlines

Exactly this, enough distraction and hope people miss the various elements of cost, the same with the unpaid bill surcharge added because the government/Ofgem refuse to let energy suppliers deal properly with non-payers. 

Bit harsh! If you can't afford to pay, then you can't afford to pay. If you refuse to pay or have spent the money on non-essential items instead, then it's still very hard and very slow to get that money paid. Cutting people off is, to my mind, cruel. Raising fines that often also won't be paid can be a waste of time and effort, and putting people in prison costs a fortune and doesn't solve the problem upon release.

bristolleedsfan

Scot_39 said:

.


And BBC says it includes £28 not the recent consultation £16 figure for estimated £3.1bn debt. That's 7.7p per day. 

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