Capped electricity prices

[u587162]

Not sure if this is the right forum thread to post, but anyways.

So I'm guessing I'm guessing that most of us are on the govt fixed variable tariff where we are paying circa 40p per kw for electricity.

I have a family friend a few streets away with British Gas as their provider and they are paying some 5p less for the capped tariff. How is it possible the capped tariffs can be different across providers for the same area?

 

[Rodders53]

Ofgem suggest the AVERAGE electric capped unit price is 34p/kWh for single rate and AVERAGE 46p/day standing charge.
Those numbers vary a bit by region of the country and also slightly by supplier.
Payment method (PAYG, DD variable, DD fixed, pay on Bill) also has a small effect on price (much less than they used to).

From your profile "Artfudsheer" is probably Eastern Region prices? https://www.gov.uk/government/publi...l-rates/energy-price-guarantee-regional-rates

Note that Economy 7 and similar multi-rate metering rates can be rather different. Might that explain your 40p rate?

 

[mattylad]

I'm with Octopus in the NW and it's 34p per kwh

 

[ETAF]

the price is capped at the average usage

Energy price cap explained

The energy price cap is a limit on the price people pay for their energy. The price cap has been replaced by the Energy Price Guarantee as the cap on consumer energy bills until April 2024.

www.ofgem.gov.uk

34P per Kwh

varies slightly by the 12 regions

Also from jan23 - it can go up a fraction of a penny

Energy bills: Customers contacted over January bill changes

Slight changes to gas and electricity rates are likely to add only pennies, not pounds, to your bill.

www.bbc.co.uk

But i suspect the utility companies can charge what they like up to that threshold
British Gas website seems to have a lot of different tariffs available , but from what I have read , the ones i linked to are not available

these are the rates quoted by SO Energy

https://so.energy/so-flex-tariff-rates/

who are pretty open with their tariff rates
no idea what BG are - not easy to find, at least for me

 

[ericmark]

Thank your lucky stars there is a cap, no such luck with oil, one has to pray it is within your budget, I was lucky last fill up £500, but had I filled up two weeks earlier it would have been more.

I have two options, pay for oil, or get cold, simple.

 

[flameport]

There are still some people on fixed rate tariffs from before all of the mess we are now in - 18 month and 24 month deals were available.
Some providers charge less than the maximum permitted for some or all of their customers
Even though the 'standard rate' variable tariff is now the most common, there are still other options available which may be better suited to some people.

As has always been the case - check what is available from your supplier and change if appropriate.
Other suppliers are available, and even though the differences between suppliers for the 'standard' rate may be nothing or very little, other options may be totally different.

 

[Old Salt]

Some people may have moved off the standard rate once their fixed deal ended, but before the cap was introduced, by choosing another tariff. This could have resulted in them being on a higher tariff.
The capped tariff is the cost for the average user. It does not stop you exceeding the average useage and consequently paying more.

Suppliers charge different amounts depending on what they can get away with and how competitive they want to be. I used to work for one of the “big six” who had a policy of being in the middle, not the cheapest but not the dearest either. They also use UK call centres. So you may want to pick your supplier based on your overall needs not just the cost.

 

[u587162]

Am I able to switch supplier to their capped rate? OFten every other provider is trying to put off new people from joining.

 

[big-all]

Am I able to switch supplier to their capped rate? OFten every other provider is trying to put off new people from joining.

there is no such thing as such as a capped bill just a capped unit rate
in other words no cap what so ever just maximum unit price with an average bill cost where iff you use above average your bill will be more below average will be less if you use double the average at say 5k thats what you will be charged but like me the Tories seem to be quite illiterate and seem to lack the intelligence to make a clear and concise statement that is factually accurate
in other words wasting time looking at swapping is at best a few pence saving a day up to costing more per day so worth no more than a bit off swapping iff better service when problems happen but not much more

 

[u587162]

there is no such thing as such as a capped bill just a capped unit rate
in other words no cap what so ever just maximum unit price with an average bill cost where iff you use above average your bill will be more below average will be less if you use double the average at say 5k thats what you will be charged but like me the Tories seem to be quite illiterate and seem to lack the intelligence to make a clear and concise statement that is factually accurate
in other words wasting time looking at swapping is at best a few pence saving a day up to costing more per day so worth no more than a bit off swapping iff better service when problems happen but not much more

Where did I say anything about a capped bill? I'm well aware it is a capped unit rate.

 

[big-all]

just making sure its clear to all that read this thread
sorry if you took it at all in a negative way ----sorry

you can tell i am not a politician

 

[u587162]

No worries.

I was just a bit surprised as I thought all “UK government assisted capped rates” (or call it what you will) around the uk are the same. I know energy costs under normal circumstances differ but I honestly thought the unit rates were fixed nationally under the cap.

We have many adults and two children so our annual consumption despite all the insulation etc and latest boiler etc, is still high as we do admittedly use more heating due to elderly at home and cooking etc.

5p a kw difference adds about £30 a month just to our electric bills. Which is why I don’t understand someone living 0.5 miles away with British Gas is paying 35p a kw and I’m paying 40p with Outfox the market.

 

[ETAF]

they say they are following the price cap

https://help.outfoxthemarket.co.uk/hc/en-gb/articles/5273835137436-Variable-Tariff-Price-Change-notification-October-2022-FAQs

which is not 40P per KWH for electricity as far as i can make out

As mentioned there will be a change in January

Price Change | Outfox The Market

www.outfoxthemarket.co.uk

put your postcode and account number and see

probably best to contact them direct and ask the question why

I posted the link to the ofgem website

Are you electric only ?

 

[Rodders53]

Without seeing one of your bills from Outfox with the personal info (name, address, meter serial, account no etc.,..) redacted (black line through to hide) we can't tell the unit rates charged for gas and electric.

My EonNext statement (elec only single rate meter) shows

1st Nov 2022 95959.0 Customer reading
1st Dec 2022 96241.0 Customer reading
Energy Used 282.0 kWh @ 50.39p/kWh £142.09
Energy Price Guarantee 282.0 kWh @ 17.00p/kWh -£47.93
Standing Charge 30 days @ 37.082p/day £11.12

All prices are excluding 5% VAT.

So I'm actually paying almost 53p/kWh inc VAT (before the EPG subsidy)
But in fact it is really 35(.054) pence which is the Eastern Region rate.

 

[ETAF]

so they are choosing to show the reduction in a different way
50.39p per KWH - 17p per KWH
= 33.39p

then 5% vat on the full bill
35.0595

then £67 off the bill each month till March

Energy Price Guarantee: regional rates, October to December 2022

www.gov.uk

from January23

Energy Price Guarantee: regional rates, January to March 2023

www.gov.uk