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

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  • Consumerist
    Consumerist Posts: 6,310 Forumite
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    Hengus wrote: »
    . . . It really is time that the Government took a hard look at whether Ofgem is actually fit for purpose.
    Well, on that issue I'm with you.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • hammers81uk
    hammers81uk Posts: 109 Forumite
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    That is understandable, iv edited it to reflect that.
  • molerat
    molerat Posts: 31,953 Forumite
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    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?
    Somewhere in the document is a % split figure for the cap to be based on.
  • Consumerist
    Consumerist Posts: 6,310 Forumite
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    hammers81uk wrote: »
    That is understandable, iv edited it to reflect that.
    Far better if you had deleted the post altogether. It may, anyway, be reported by anyone finding your soliciting objectionable.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • EachPenny
    EachPenny Posts: 12,239 Forumite
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    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?
    It certainly looks a bit iffy. One very simplistic interpretation of the figures might lead to the conclusion that heating/cooking with gas is only 10% efficient. :eek:

    I suspect it is possible the figures are skewed because electrically heated properties tend to be smaller and therefore have a lower total energy consumption for heating purposes? (and perhaps because the perceived higher costs of electric heating cause people to use less?)

    The figures will also be affected by the very many people like me who have a dual-rate meter but use other energy sources (gas/oil/coal/wood) for part (or the the majority) of their space heating requirements.

    It would be a false assumption to think that everyone with a dual-rate meter relies on electricity for their heating.
    "In the future, everyone will be rich for 15 minutes"
  • matelodave
    matelodave Posts: 8,613 Forumite
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    I would have thought that you have to use the 3100kw at the peak rate PLUS 4200kwh at the off peak which would equate to about 7300kwh per year.

    In the end the laws of thermodynamics come into play and a kwh has the same effect whether it's produced by gas, electric or even half a tree.

    If it takes 12000kwh to heat the house and hot water using gas then even taking all the inefficiencies into account I'd doubt that you'd get away with a great deal less than 10,000kwh or leccy.
    Never under estimate the power of stupid people in large numbers
  • wavelets
    wavelets Posts: 1,164 Forumite
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    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?

    You'll be surprised how many properties have E7 meters that use surprisingly low quantities of electricity e.g. because they also have gas ;)

    We have E7 and gas central heating, and so use significantly less than 4200kWh/year of electricity

    And just to skew the average figures even more, we have control of another property (unoccuppied) fitted with E7 metering (and gas central heating) that used less than 100kWh of electricity last year.
  • Baptist
    Baptist Posts: 1 Newbie
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    As BULB only have one tariff - would we be classed as being on the "Standard Tariff" ?

    How do I establish if I am a "typical user"
    ?
    One of the reasons I am trying to work through this issue - is that BULB have mailed to tell me they have decided to increase my payment and at the moment even on a worse / best case scenario I think they have gone at least £10 per month to much.

    (I have ended up at my anniversary in credit and am totally happy to have that roll over)
  • [Deleted User]
    [Deleted User] Posts: 1,655 Forumite
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    edited 8 November 2018 at 10:12PM
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    Baptist wrote: »
    As BULB only have one tariff - would we be classed as being on the "Standard Tariff" ?
    From the news article
    This means a typical user on a standard or default tariff
    So as Bulb only have a default tariff (there is only one tariff) then the rules will apply.
    Also the cap is on the energy unit price so applies to all users, typical or otherwise.
    So higher users will still pay more than a typical user.

    Suggest you read the article for more https://www.moneysavingexpert.com/news/2018/11/energy-prices-will-be-capped--regulator-confirms/
  • jcontest
    jcontest Posts: 223 Forumite
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    Baptist wrote: »
    As BULB only have one tariff - would we be classed as being on the "Standard Tariff" ?

    How do I establish if I am a "typical user"
    ?
    One of the reasons I am trying to work through this issue - is that BULB have mailed to tell me they have decided to increase my payment and at the moment even on a worse / best case scenario I think they have gone at least £10 per month to much.

    (I have ended up at my anniversary in credit and am totally happy to have that roll over)


    Bulb states they have one tariff.
    Bulb does say it can vary region to region.
    Their Website says 3,100 KWH Electricity and 12,000 KWH Gas cost £1003.


    £1,137 is the cap. They are under the cap, so their prices are okay.


    Basically you should read the rest of the thread, and the news item it is attached to. There is a price cap, but it is a per unit price cap based on 3,100 KWH Electricity, 12,000 KWH Gas, and £1,137.


    Bulb is an idea that is a failure. Not because it's a bad idea, but because consumers are idiots. As long as a big company can use a loss-leading product to pull someone in who will then stay on for 5 years paying way over the odds, then single "fair" tariff providers will never look good on price comparison sites. Bulb customers will not see a price drop due to this "cap". Non-Bulb customers will see a price increase due to this "cap". Also expect standing charges to start changing a lot, as energy providers will work to maximize profits.
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