Forum search & shortcuts

Energy cap price ri...
 

Energy cap price rise

Posts: 3185
Full Member
 

Thanks, thats more like it. Ridiculous that its found on a consumer advice website not the actual organisation that is responsbile.


 
Posted : 04/02/2022 11:42 am
Posts: 0
Free Member
 

Anyone moved from Pure Planet to Shell?

Think they've messed up the transfer as my personal projection is showing as £28,817 a year.


 
Posted : 04/02/2022 11:52 am
Posts: 23340
Free Member
 

so I'm on a flexible tarrif with octopus, based on the last years figures:

2900 kWh Electric @ 21p/unit & 26p/day standing charge

3300 kWh Gas @ 4p/unit & 24p/day standing charge

that works out at £950/yr total which ties up with my DD of £105 and the £300 I'm currently in credit.

using those numbers up there, if I use the same amount this next year, it works out at £1350/yr.

when I looked at a fixed price tariff a couple of months back the cheapest on offer was ~£2000/yr.

am I missing something?


 
Posted : 04/02/2022 12:01 pm
Posts: 4593
Free Member
 

The average family in the UK is going to have to face the following increased annual costs:

£720 NI. (based on 2 people working on average UK income)
£75 Council Tax.
£390 Food.
£300 Vehicle Fuel.
£693 Gas/Electric
£800 increased mortgage payments.

Don't forget that if you're under about 30 and a graduate, your student loan repayment threshold is being frozen this year, which Martin Lewis reckons will effectively cost about about £110 a year.


 
Posted : 04/02/2022 12:06 pm
Posts: 1288
Free Member
 

@jam-bo

No. The fixed price tariffs available are very high and give an indicator that the utility suppliers expect the worst for the next year.

Do you mean 13300 kw for gas?


 
Posted : 04/02/2022 12:06 pm
 irc
Posts: 5332
Free Member
 

@jam-bo

You weren't on their best tariff. So your increase may be less in percentage terms than the headlines. My Octopus fixed ends in March. Current rates
Elec 16.2 per Kwh Gas 2.8p per Kwh.

Current fixes are higher than the standard variable rate because future price rises are priced in.

So I'm looking at a near 100% increase in April. £94 to around £170 or £175 per month allowing for being in a bit of credit at the moment.


 
Posted : 04/02/2022 12:22 pm
Posts: 23340
Free Member
 

Do you mean 13300 kw for gas?

no, i used 318 cubic metres of gas last year, based on what I could find the conversion to kWH is ~10x

1880's mid terrace 3bed in the sub-tropical SW.

I'd probably get a better return on mini-hydroelectric installed in my gutter downpipes than solar...


 
Posted : 04/02/2022 12:31 pm
Posts: 5185
Full Member
 

when I looked at a fixed price tariff a couple of months back the cheapest on offer was ~£2000/yr.

Fixed price tariffs aren't subject to the cap. They do their calculations with predictions on where wohlesale costs will go, and currently those are very high.

The cap has flipped everything on its head - it exists to protect consumers who'd fall off cheaper fixed deals and then get charged a very high rate if they didn't bother to find a new tariff. Now though the cap is limiting the max you can get charged so almost everyone is better off taking the capped rate rather than a fixed deal.

It's going to be very hard for the energy companies bound by the cap but who have to buy at open wholesale rates - when renewables are low (less sun/wind) and demand is high they can be paying much, much more than the cap rates. Expecting even more of them to fail over the next year.


 
Posted : 04/02/2022 12:47 pm
Posts: 23340
Free Member
 

it strikes me then that the cap is only beneficial to those over it, surely those under it are providing subsidy.


 
Posted : 04/02/2022 1:00 pm
Posts: 12343
Full Member
 

Doesn't work like that. It's a cap on unit and standing order charges, if you're above average use, you'll still pay more! And less if you are under.

It’s going to be very hard for the energy companies bound by the cap but who have to buy at open wholesale rates

That's what hedging is for. The ones that went bust already were small players who didn't have the financial capacity to do enough hedging, and got caught out by the disparity between wholesale costs and tariff charges.


 
Posted : 04/02/2022 1:24 pm
Posts: 27603
Free Member
 

Now water going up 1.7%

Ffs


 
Posted : 04/02/2022 1:25 pm
Posts: 1325
Full Member
 

jam-bo
Full Member
it strikes me then that the cap is only beneficial to those over it, surely those under it are providing subsidy.

You can't be under the cap. The cap is On the unit price of energy and the daily charge.

The 'cap' figure which keeps getting mentioned (£1277 currently i think) is the cost of annual energy use at the capped rate.


 
Posted : 04/02/2022 1:28 pm
Posts: 7286
Full Member
 

This isn't the Brexit i voted for. Where's the global warming they promised us, that's what i wants to know. I was expecting 15c winters and 30c summer temps but they lied to us sbout that and the 35,000,000 other thing. Although i think they forgot to type the brackets on the side of the bus.
Just need a run on inflation where it hits 10% them we really will be in trouble, as the millions of people scraping by with a £450 pcm mtg today will simply not have a cat in hells chance of covering a £1k+payment.
Be like the 80s again.


 
Posted : 04/02/2022 1:36 pm
Posts: 12343
Full Member
 

The ‘cap’ figure which keeps getting mentioned (£1277 currently i think) is the cost of annual energy use at the capped rate.

... the AVERAGE cost of annual energy use ...

Which is why it's meaningless as you need to be able to compare the unit and standing charges against fixed tariff prices as snotrag said up there. ☝


 
Posted : 04/02/2022 1:42 pm
Posts: 23340
Free Member
 

You can’t be under the cap. The cap is On the unit price of energy and the daily charge.

The ‘cap’ figure which keeps getting mentioned (£1277 currently i think) is the cost of annual energy use at the capped rate.

thats what i'd missed. I assumed that it meant once you hit the magic number, that was the most you could be charged in a year. didn't make much sense.


 
Posted : 04/02/2022 2:07 pm
Posts: 2683
Full Member
 

Under the new cap, the rates on average (it varies by region) are about 7p/kWh for gas, with a standing charge of 27p per day. For electricity, it’s about 28p/kWh, with a standing charge of 45p per day.

Crikey, my deal ends in May 2022, looks like Gas Kwh is nearly tripling, 12 pence extra on the elec kwh and a doubling of the elec DSC! crikey


 
Posted : 04/02/2022 2:10 pm
Posts: 1288
Free Member
 

thats what i’d missed. I assumed that it meant once you hit the magic number, that was the most you could be charged in a year. didn’t make much sense.

If only, my house would be like an oven if that was the case 😀


 
Posted : 04/02/2022 2:21 pm
Posts: 502
Full Member
 

Be nice if the general public hadn't said no to every new nuclear site, given that existing ones are limited in the number of reactors they can put on them.

Next winter, pensioners are in the crap. Working families on minimum wage are up the crapper. The government have done a good job in destroying community cohesion so there won't be the possibility of a general strike (in order to nationalise, or subsidise power) to threaten the rich bugger's revenue stream.


 
Posted : 04/02/2022 4:38 pm
Posts: 13594
Free Member
 

Be nice if the general public hadn’t said no to every new nuclear site, given that existing ones are limited in the number of reactors they can put on them.

UK PLC has not had a proper energy strategy for decades. We've had successive governments fudge the issue / ignore it and blow hot / cold on wind / nuclear / solar for as long as I can remember.

As for gas storage, they decided to say a few million and shut down our largest storage facility as it wasn't being used much. The markets change and suddenly gas costs a fortune and we don't have any storage.

A failure of leadership / vision at the highest level.


 
Posted : 04/02/2022 4:41 pm
Posts: 7751
Free Member
 

For remaining energy companies, is there any publicly available information on when their current hedges unwind?
Would be interesting but probably deemed to be commercially sensitive.


 
Posted : 04/02/2022 5:02 pm
Posts: 6937
Full Member
 

I remember sitting in a Conference in Westminster nearly 25 years ago with succession of industry executives pleading for a energy policy and strategy that could be used to drive investment in things like infrastructure, training, skills. It hasn’t happened because we’ve had government after government with no real knowledge outside the Westminster bubble. Even the big investments in nuclear has depended on foreign investment and industrial capability because there’s not much left in the UK.
There was a concerted effort at the time to de-nationalise, even things like decades of nuclear waste liabilities. When projects got in the do-do, BNFL tried to sue their sub-contractors for their own incompetence - one of the reasons why Rolls-Royce pulled out of Civil Nuclear.


 
Posted : 04/02/2022 5:03 pm
Posts: 12343
Full Member
 

As for gas storage, they decided to say a few million and shut down our largest storage facility as it wasn’t being used much.

IIRC, Rough was knackered anyway because the geology was failing. Don't think it was entirely a commercial reason, although the safety angle could have just been a ruse to get additional funding for critical national infrastructure of course.


 
Posted : 04/02/2022 5:09 pm
Posts: 13813
Full Member
 

https://twitter.com/MartinSLewis/status/1489584984235065344

so you can't opt out of the loan


 
Posted : 04/02/2022 5:16 pm
 Chew
Posts: 1346
Free Member
 

Its basically just kicking the can down the road, in the hope that energy prices will reduce in the medium term.

Unfortunately the general public are seeing the headlines of £350 for every household

(i'd also expect council tax to increase over time to recover the £150)


 
Posted : 04/02/2022 5:44 pm
Posts: 13594
Free Member
 

Its basically just kicking the can down the road, in the hope that energy prices will reduce in the medium term.

That has been UK PLC's energy policy for the last 30 years, so hardly surprising!


 
Posted : 04/02/2022 5:57 pm
Posts: 3051
Free Member
 

Spekkie and other Spanish users - check what potencia you are contracted to, you can make 1 change foc per year on the app. I have reduced mine twice, the simulator on iberdrola website is pretty accurate. Also, I went to the local iberdrola office and said I m switching supplier, it was a bluff, they put me on a 15% discount and an annual fixed price.

I m on the day night plan too, all the above my bills are about half what they were, same consumption.


 
Posted : 04/02/2022 6:18 pm
Posts: 1325
Full Member
 

tthew
Full Member
The ‘cap’ figure which keeps getting mentioned (£1277 currently i think) is the cost of annual energy use at the capped rate.

… the AVERAGE cost of annual energy use …

Which is why it’s meaningless as you need to be able to compare the unit and standing charges against fixed tariff prices as snotrag said up there. ☝

Yeah that's what I meant to write...

Currently on a fix, just calculated ours will go from £1704 to £3223 per year in September if we don't cut our usage


 
Posted : 05/02/2022 6:46 am
Posts: 1388
Free Member
 

Just had Email telling me my Octopus go rate ends next month.
New go rate doubles the on peak tarif to >30p/kwh (previously 13p/kWh).
From what I can see it's priced to make the variable rate very attractive with their "calculations" making the flexible rate ONLY £300 increase than their predicted £500.
Fro reference my total electric cost last 12 month was just over £500 (Am already very careful with usage and it's only me in the house most of the time).

Next winter will be interesting, am more worried about my mum who refuses to come off her PAYG meter.


 
Posted : 21/02/2022 10:58 pm
Posts: 13594
Free Member
 

Octopus has just upped our monthly DD by 20% (extra £17 on top of £81) which seems a bit low. Wonder if it is based on the existing capped value and not the new values coming in next month.....


 
Posted : 22/02/2022 5:45 pm
Posts: 2683
Full Member
 

We're already on the current capped variable rate and just been told when the cap is raised on 1 April our annual charge will go from c£1430 to £2300 per year. So £870 or 60% rise. I guess this is before the £200 loan back

I assume the impact will be similar for everyone else already on variable rates. If you are coming off a fix it will be bigger.

Actual tariffs:

Your electricity rates will change from 20.076p to 27.358p per kWh and your standing charge per day will change from 26.82p to 48.52p.
Your gas rates will change from 3.983p to 7.280p per kWh and your standing charge per day will change from 26.11p to 27.22p
.


 
Posted : 22/02/2022 11:38 pm
Posts: 2222
Free Member
 

Sickening.


 
Posted : 22/02/2022 11:49 pm
Posts: 0
Free Member
 

Was paying £147 a month and when our contract ended in January the energy company bless them, wanted to charge me £310 a month to ‘protect me’ against future price rises. It was almost impossible to find their standard tariff on the website. Now Being really energy conscious and on the variable my costs are still £147 a month (in winter) and come April they still won’t be anywhere near £310a month.


 
Posted : 23/02/2022 12:32 am
Posts: 0
Full Member
 

£147 a month (in winter) and come April they still won’t be anywhere near £310a month.

No they won't I don't think. Our usage is similar and we're projected to go to around £220 p/m on the new cap prices (winter bills). Come October though when it is reviewed again all bets are off. It could hit those levels quite easily.

But for now they are taking the ****.

Actually with Utility Warehouse seemingly incapable of getting us onto set monthly payments I am quite happy with them just billing us what we use each month. Most expensive month for us was January at £200 which we could easily manage and then through the summer it will be quite a lot less. I would rather just build up my own buffer for the winter.


 
Posted : 23/02/2022 7:51 am
Posts: 3066
Full Member
 

We were on £75 p/m last year, that's just crept up to £110 in the last couple of months. Got the email list night with the prediction for the next year were going up to £166 p/m.

Is there any point trying to find a good EV tariff right now, or let things settle down for a bit then look!?


 
Posted : 23/02/2022 9:30 am
Posts: 8469
Full Member
 

For those with the ability to find the capital, the financials for a solar/battery system are getting much stronger.

For me, a tariff like Octopus Go would mean I use no peak energy, as I can charge the battery by solar for my evening peak, and charge it with night time 5p grid electricity to cover the morning rush. I would also charge my EV with either solar or night time cheap electricity.

It's the ability to access the 5p rate, whilst avoiding the 30p that makes the system work.


 
Posted : 23/02/2022 9:56 am
Posts: 288
Full Member
 

I understand wholesale price rises of gas would increase the price of electricity but don't understand why the increase is so high when I think less than half of the UKs electric is produced by gas.

Also, how does the price of gas put the daily standing charge up from 26p to 49p?


 
Posted : 23/02/2022 10:06 am
Posts: 39737
Free Member
 

For those with the ability to find the capital, the financials for a solar/battery system are getting much stronger.

unfortunately so are costs and lead times. I had 4kw installed mid summer last year having been delayed from the original 3 month install plan by a further 6 months . made a massive difference to my bills .... pretty much halfed them in all but december.

@bruneep is struggling to get a survey from the same local company (or infact anyone) due to increase in demand. I might be misquoting him but iirc he said the phone quote without survey was a budgetary near double what i paid - and the time to install would be some time 2023 ......

Lead times on some recycled Tesla battery units were 8 months when i was looking , after living with the solar for 6 months i tried to get a battery fitted but the lead times nearly doubled - costs remained the same though.


 
Posted : 23/02/2022 10:07 am
Posts: 0
Free Member
 

I understand wholesale price rises of gas would increase the price of electricity but don’t understand why the increase is so high when I think less than half of the UKs electric is produced by gas.

First, you would have to ask "Why is the price of gas high?". You would think it was an increase in demand. Yet, demand is similar to pre-pandemic levels, as is supply.

Essentially, they are high because investors (hedge funds) are buying gas at high prices, because they believe they will be higher (or lower) in the future. To some degree, this is self perpetuating as high prices lead to political instability, which leads to higher prices.

The UK gets less than 5% of gas from Russia (around half from the North sea, 40% from Scandi, and some liquified gas from around the world). So the price of gas in the UK should not directly be affected by what is happening in Russia. In practice, prices are set globally for gas and the prices of electricity from other sources is set globally to compete.

Alongside holdings in North sea gas. Shell, BP... have significant holdings in Russian gas from yesterday's FT:
"BP owns almost a fifth of Russia’s largest oil producer Rosneft. UK-listed rival Shell controls 27.5 per cent of Gazprom’s huge Sakhalin-2 offshore gas project in Russia’s far east."

On balance high gas prices probably are a benefit to UK Plc if not the consumer. Hence the weak government response.


 
Posted : 23/02/2022 10:36 am
Posts: 16220
Free Member
 

But for now they are taking the ****.

Not really. Current wholesale costs are more than the cap so many retailers are making a loss on the standard tariff they're obliged to offer. That's why about thirty have ceased trading in the last year.


 
Posted : 23/02/2022 1:40 pm
Posts: 1324
Free Member
 

Energy prices only ever go up.
Greater global population --> more pressure on finite resources --> higher cost of extraction --> higher retail prices.


 
Posted : 23/02/2022 5:59 pm
Posts: 0
Free Member
 

Energy prices only ever go up.
Greater global population –> more pressure on finite resources –> higher cost of extraction –> higher retail prices.

Except when they go down ...

Graph


 
Posted : 23/02/2022 6:14 pm
Posts: 1173
Full Member
 

@goslow

Also, how does the price of gas put the daily standing charge up from 26p to 49p?

Many years ago the standing charge directly corrolated to the cost of running the infrastructure. That is no longer the case. Now standing charge is just part of the pricing package the suppliers offer and should be considered part of the total energy cost.


 
Posted : 23/02/2022 8:46 pm
Posts: 16220
Free Member
 

Energy prices only ever go up.
Greater global population –> more pressure on finite resources –> higher cost of extraction –> higher retail prices.

Current prices have very little to do with the cost of production.


 
Posted : 24/02/2022 12:37 am
Posts: 5803
Free Member
 

I know it's only Feb but I fear what will happen in October now Putin has invaded Ukraine. I've not read any analysis yet and so far ahead or would be very uncertain, but I could imagine another doubling in wholesale gas prices maybe. People would freeze, or starve, or both.


 
Posted : 24/02/2022 10:51 am
Posts: 7751
Free Member
 

As Ukraine is major grain exporter and food prices are steadily rising it will not be either freeze or starve for some - it will be both.


 
Posted : 24/02/2022 11:10 am
Page 3 / 10