MSE News: Energy prices will NOT be capped at £1,137/yr, says Martin

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  • bxboards
    bxboards Posts: 1,711 Forumite
    redux wrote: »
    MSE Energy Club sent me a email to say now I've reached the point where I can save over £50 a year by switching.

    When I log in and do a new check, I'm still on cheaper than the cheapest.

    That reminds me of a slogan from somewhere ...

    It feels like little more than a commission earning scam at times.

    I would much prefer suppliers stop paying switching sites 60 quid a pop and maybe use it to pay into a fuel poverty fund, benefit the many, not the few who own the switching sites.
  • Anthorn
    Anthorn Posts: 4,362 Forumite
    First Post First Anniversary Combo Breaker
    The naivety of some people and also certain suppliers such as Ebico which should know better really doesn't surprise me: i.e. switch to the standard tariff and pay no more than £1,137 per year no matter how much energy you use? Er ... no. It is quite obviously a cap on rates. But a real shame that OFGEM approached what amounted to a much needed cap on prices so brainlessly. But that doesn't surprise me either.
  • Consumerist
    Consumerist Posts: 6,310 Forumite
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    edited 7 November 2018 at 11:30AM
    tgroom57 wrote: »
    . . . it would be a simple matter (for me, anyway) to calculate a proportion of "typical usage" -if only I knew what number they are using !
    <Ofgem's Typical Domestic Consumption> values are assumed. It's a fairly generally used standard. They are currently:
    Gas: 12,000 kWh / year
    Elec.: 3,100 kWh / year
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    From the Ofgem Decision Paper:

    Typical consumption values used are 3,100 kWh per year for electricity (single rate), 4,200 kWh per year for electricity (multi-register) and 12,000 kWh per year for gas.


    All the detail is here:

    https://www.ofgem.gov.uk/publications-and-updates/default-tariff-cap-decision-overview
  • Consumerist
    Consumerist Posts: 6,310 Forumite
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    edited 7 November 2018 at 12:02PM
    In case you missed it, that's
    Gas: 12,000 kWh / year
    Elec.: 3,100 kWh / yea

    And this could add yet another dimension to the whole idea beacause these typical values are reviewed at about two-year intervals. The typical value of this cap could be bobbing around like a yo-yo in the future.

    Another great idea from our beloved energy regulator. May confusion reign supreme.
    :rotfl:
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    Consumerist wrote: »
    In case you missed it, that's
    Gas: 12,000 kWh / year
    Elec.: 3,100 kWh / yea

    And this could add yet another dimension to the whole idea beacause these typical values are reviewed at about two-year intervals. The typical value of this cap could be bobbing around like a yo-yo in the future.

    Another great idea from our beloved energy regulator. May confusion reign supreme.
    :rotfl:

    What is surprising, well at least to me, is how low the multi-register typical value is at 4200 kwhs/year. I would have thought that a typical E7/E10 user would use a lot more electricity - but what do I know?
  • molerat
    molerat Posts: 31,818 Forumite
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    Hengus wrote: »
    ........ - but what do I know?
    You obviously don't know how to manipulate statistics to suit an agenda ;)
  • molerat
    molerat Posts: 31,818 Forumite
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    edited 7 November 2018 at 12:38PM
    https://www.ofgem.gov.uk/system/files/docs/2018/11/default_tariff_cap_level_-_01_january_2019_-_31_march_2019.pdf gives the rates for each area. Still quite a lot of wiggle room for the suppliers to manipulate the SC and unit rates to their benefit as long as the overall cost does not exceed the caps for the specified use. Even if you do have the exact specified use the cap is not that figure quoted as that is an average based on all the different region caps.
  • Consumerist
    Consumerist Posts: 6,310 Forumite
    Name Dropper First Post First Anniversary
    Hengus wrote: »
    What is surprising, well at least to me, is how low the multi-register typical value is at 4200 kwhs/year. I would have thought that a typical E7/E10 user would use a lot more electricity - but what do I know?
    I'm not sure how this capping would apply to those on E7/10 tariffs - which rates will be capped normal or cheap rates or both?
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    Consumerist wrote: »
    I'm not sure how this capping would apply to those on E7/10 tariffs - which rates will be capped normal or cheap rates or both?

    In 2013, Ofgem introduced QUOTE a major package of reforms aimed to make the market ‘simpler, clearer and fairer’ for consumers. UNQUOTE

    Five years on, the domestic energy market is shrouded in a fog of consumer confusion and mistrust. It really is time that the Government took a hard look at whether Ofgem is actually fit for purpose.
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