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£150 discount from the 1st April
My fixed traffi come to an end recently. Back in April I see this discount added that was from the government as per
Should that discount be added to my new traffi from British gas? Ive asked them about it but they are saying they records of this discount been added to my traffi even though it was clearly addedd
Comments
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It wasn't a £150 discount. As the article stated it was an average £150 and "The reduction will take place due to various green levies paid by consumers being removed from bills."
So it was a reducing in unit rates, and the £150 was an estimate to what it would have reduced the "average" bill at that time. Also, for any new tariffs, worldwide fuel prices have changed since then, so any new tariff won't necessarily be £150 cheaper than an older tariff.
If you let people know what tariff you were or are on, it can be explained more.
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There was no £150 for everyone
Firstly - it wasn't a £150 discount for everyone - that a political figure - it was the rounded version of the treasury estimated average £154 across all UK households transferred to general taxation (directly for 75% or the RO - and indirectly for the WHP - which will almost certainly abosrb most of the costs of ECO scheme).
So although the costs are no longer on our bills - they havent really gone away - just funded by tax instead.
Both were charged to us domestically via unit rates
With the tresaury £154 ave - split RO 75% ave £92 - entirely on electric - and ECO ave £62 (for suppliers in the scheme) split gas / electric.
So rates dropped a max - if supplier was in ECO - a few cheaper here were not - of c3.54p/kWh electric and 0.35p/kWh on gas - so the actual saving depended on actual consumption.
(In reality slightly less - like say 3.51p iirc on electric - as the Ofgem costings were revised after MSE produced those rate reduction figures)
And at the old cap TDCVs - now lowered - in reality reduced cap by c£130.
So the median use household - saved even less.
April Reality - for those not asymmetrically protected by fixes
So Ofgem / govt policy wise in April - what happened was
The budget in reality reduced cap by c£130 (using old TDCVs). Applied to SVT and IMO unfairly to fixes
But at the same time in April other costs went up - like £69 on networks - and £18 on wholesale for CMS (both incl VAT). Applied to SVT only.
So if you like ignoring what Ofgem term direct wholesale prices - the April changes authorised by govt - was a net reduction at cap level of
£89-130 = - £41.
Nowhere near the headline £150.
The cap fell further - but only because gas wholesale direct dropped by over £50 ex vat (was it £52)
Todays mid most recent Iran outburst crisis
And of course then there is non govt non eco costs - like the wholesale market gas spikes.
Havent checked today but yesterday gas was back at 130p/therm - due to Iran crisis.
And that put gas at 57% up on the price 12month ago.
Oops just checked again - now 133p/therm - 59% up on last years.
So in summary
Firstly - Yes - your new rates fix will in fact still contain the impact of the budget £150 changes
But your new fix will be much higher than your old - before or After April adjustments - for 2 reasons
- fixes were always going to play catch up on all the new govt / Ofgem charges (like the £87 in Apr, the £22 in Jan 26 (- or was it £31), the £41 in Oct 25 cap - £140 in total - I'll assume for now any before then reflected in your original fix) being reflected in the new fix
- and depending on when your new fix was priced - the much much higher UK market (and EU) gas prices.
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