Saving £100 on burnams energy vat deal.

Desmond2000

The prime minister said that he was removing VAT from energy bills. I know find out it is only going to be on the electricity part. I am a computer database geek and spreadsheet geek. I like to keep tabs on things. He claims that we could save £100 a year on our fuel bills.

Checking my spread sheets, I used 3,545 electrical units in the last year. This works out at £956 a year. This works out at £18 per year in savings. I decided to number crunch the figures and found that in order for me to hit Burnam’s £100 saving target, I would have to use 8,824kwh per year. I would have to start a cannabis farm to achieve this.

If anyone whants to check my spread sheet and have a play around with it then I will post it.

P.S. when the regulator raises the bar every 3 months. The cost is based on the average usage. Can someone tell me what the average Kwh usage is a year for this calculation so that I can try thouse figures out.

daveyjp

Start with providing a link to the £100 a year saving statement,

Woodstok2000

At the time I think he said it would save the average household £45 per year. That would imply electricity usage of around £900, which seems about right.

Lorian

Secondly check your VAT calculation.

nottsphil

https://forums.moneysavingexpert.com/discussion/6681824/saving-100-on-burnams-energy-vat-deal

Well you haven't 'crunched the figures' very well, have you. Even just in my head I know that 100 is less than 6 times 18, therefore 8,824kwh would need to be the same multiple of 3545!

Also, since when has VAT on electricity being over 18%?

MyRealNameToo

The stated average saving was £45 which would put the net bill at £900 which is broadly inline with most stated average bills

QrizB

This works out at £956 a year. This works out at £18 per year in savings

Here's a hint - VAT on electricity is not charged at 2%.

Ildhund

@Desmond2000 wrote:

the regulator raises the bar every 3 months. The cost is based on the average usage. Can someone tell me what the average Kwh usage is a year for this calculation so that I can try thouse figures out.

Your question will have dragged every old pedant away from his slumbers. Ofgem's Price cap isn't based on 'average usage'. They refer to 'typical consumption', which uses an estimate of the quantities 50% of households use more than - or less than, if you prefer. You can read all about the latest Typical Domestic Consumption Values (TDCV) here: Review of typical domestic consumption values: decision.

The typical medium household in this model is deemed to use 2500 kWh of electricity and 9500 kWh of gas each year.

oldernonethewiser

"If anyone whants to check my spread sheet and have a play around with it then I will post it."

Probably best not to, given the various responses on here.

Oscarmax

I will probably be approximately £23/25 better off, it all helps.

Qyburn

Checking my spread sheets, I used 3,545 electrical units in the last year. This works out at £956 a year. This works out at £18 per year in savings

I make that £45.52 saving.