Energy cap price rise

Up by 54%!

UPDATE: Energy regulator Ofgem has announced a £693 rise to the energy price cap, taking the new threshold to £1,971 – a rise of 54 per cent.

Follow our live blog for more updates ? https://t.co/KQFMaAteMf

— Standard News (@standardnews) February 3, 2022

not in the slightest surprising. Any news on the ‘help’ (aka long term loans to the providers) from the government?

Well that’s better than expected* – Martin Lewis was reckoning it being far closer to 70% increase in April.

* Still terrible for our wallets tho!

What does that mean for actual unit prices for gas/elec?

And as is always the case in the UK, the poorest will once again be hit hardest.

Those on pre-payment meters will face the biggest price increases.

The price cap is a cap on a unit of gas and electricity, with standing charges taken into account. It is not a cap on customers’ overall energy bills, which will still rise or fall in line with their energy consumption. From 1 April the equivalent per unit level of the price cap to the nearest pence for a typical customer paying by direct debit will be 28p per kWh for electricity customers and 7p per kWh for gas customers

Ofgem

I think it’s time to finally fit a solar/battery system.

Not surprised either. We came off of our fixed price energy tariff in September-ish last year when the crisis hit, so we’ve been on SVR since then. Just had a 6 month bill and it’s pretty eye watering, more than double what we paid in the previous 6 months.

I don’t understand the approach to just keep creating money and loaning it to every man and his dog (energy suppliers, first time buyers, banks). Short term-ism at it’s finest, typical politicians.

This is only part one as well. Will rise again before next winter.

What does that mean for actual unit prices for gas/elec?

That unit prices have doubled in 6 months.

My reckoning is my electric will go to 30p/kWh and my gas to 7.5p/kWh.
At that price it is still cheaper than some of the 2yr deals I saw last year which were 40p and 10p per kWh.
Maybe the autumn increase will make my standard variable tariff greater than last year’s 2 year ‘deals’ 🤔

Will they also be increasing the standign charge to match?  I annoys me that the “standing charge”, nominally the cost of actually supplyign the gas/electricity, goes up and down with wholesale prices when the cost of running the infrastrcuture shouldnt really change.

Those rates are double what I was paying on my last fixed price tariff, so there goes the saving I’ve just made by re-fixing the mortgage!

EDIT: and having just checked USwitch, the capped Standard Variable Rate from April at those rates sated above, is still cheaper than taking out a new fixed rate deal…    So I guess we all just hsve to sit on our hands and the consumer energy market will grind to a halt, making all thise call centres housing sales teams redundant…

Martin Lewis was reckoning it being far closer to 70% increase in April.

Was that the overall increase? As above, my bill almost doubled as a result of being on SVR since September. Some of that will be coming off the fixed rate, but a chunk of it was the rises that I think came into effect back then.

If the cap has gone up by 50% then we could easily be at 100% increase since September last year.

I’m fully aware btw that the option I have to go solar isn’t possible to many due to cost.

It is becoming a no-brainer at current prices though if you can do it.

It is becoming a no-brainer at current prices though if you can do it.

Excuse the probable dumbness of this question, but how does this all affect those lucky enough to already have solar? We have a 4kw array, installed by the previous owners, and sell back to an energy provider (not the same one we buy our electricity from).

We have a 4kw array, installed by the previous owners, and sell back to an energy provider (not the same one we buy our electricity from).

Put your prices up!

Excuse the probable dumbness of this question, but how does this all affect those lucky enough to already have solar? We have a 4kw array, installed by the previous owners, and sell back to an energy provider (not the same one we buy our electricity from).

Time to the breakeven point reduces, that’s all, the price per kWh is still doubling along with everyone else.

Meanwhile Shell announce record profits and dividends

Next review is October; forecast is another chunky increase – higher than one just announced.
Support package announced by sunak is better than nothing but nowhere near enough.
Grant/discount to offset increases is nothing other than deferred payment and doesn’t start until October.
Appears to be predicated on energy prices falling over a 5 year term – and there’s no certainty of that.
£150 mill for councils to support low income families sounds like a lot but won’t go far.
sunak claiming his package is both generous and comprehensive is laughable

Meanwhile Shell announce record profits and dividends

Shell’s PR and CSR department will be having kittens right now as this is the absolute worst time for them to be slapping themselves on their back.

I would argue that the accelerated march of investors out of unethical portfolios is likely to increase – I can see Labour grab hold of the windfall tax piece and throttle it for all its worth – any organisation standing to make profits off the back of these indirect causes will be gold.

Personally speaking, I would feel really uncomfortable to hold a portfolio where there isn’t some form of balance ethically; I suspect that we’ll see much more of this from Labour.

(energy suppliers, first time buyers, banks)

First time buyers shouldnt really be on that list. They are just a handy conduit to those who actually benefit from those generous efforts to push prices up.

My fixed price deal ran out recently, putting my bills up by 50%, a further 54% in April will see them having increased by 131% since Christmas. And more to come in October. Crikey!

PS – assuming my maths is right!

“ Meanwhile Shell announce record profits and dividends”

… on which they will pay record corporation tax and shareholders will pay record dividend tax.

Also worth mentioning that when Shell dived to a $20b loss and implemented a huge headcount reduction programme in 2019/20 that no-one was calling for a bailout.

Might it be cheaper to stop exporting and start charging a home battery?

…I’m buying shares in Damart! 😬

Put your prices up!

They’re fixed by the Feed-In-Tariff though, right? Is that likely to go up (I know it goes up by RPI in April)?

Also worth mentioning that when Shell dived to a $20b loss and implemented a huge headcount reduction programme in 2019/20 that no-one was calling for a bailout.

They will however have got all the tax relief including repayments so not all bad for them.

Interest rates increasing 0.25% to 0.5%; BoE vote was 5 – 4 in favour.
The 4 who voted against actually wanted a larger increase.
Add into the mix a forecast that inflation will peak at 7.25% in April.
Any more good news?

It could be worse we could have renationalised energy and given out free internet access, how terrible would have that been?

… on which they will pay record corporation tax

I’ll believe it when I see it, and tbh the amount of Corporation Tax paid by Shell in the UK could be a pretty trifling amount and still set a record. I’ve not seen more recent figures but they paid none at all in 2018 and 2019.

Can somene explaine the rationale of why putting up interest rates is supposed to help the issue with paying increased energy prices?? I’ve read and watched on the news that they said it would stop people spending and encourage saving – not sure how this logic works when the price of everything goes/is going through the roof? Is this a scheme that frankly is out of touch with how most people actually live?

It’s all very worrying for the vulnerable and those on low income. Hope the Government look after those groups.

What does that mean for actual unit prices for gas/elec?

I think it depends on how your Energy Co. cut it between standing charge and unit cost, but basically if you’re not in ‘deal’ your average annual cost will rise 54%

The thing is, it’s is the Spring/Summer rate, when usage is way down, so depending how your supplier it might not matter too much just now. My Gas usage drops about 60% at Spring time and Elec about 30%, but I don’t know if there’s much to stop EDF (in my case) raising the standing charge massively rather than the unit charge.

For us at home, we came out of our ‘deal’ in Oct, we were paying £95 a month, then £120, now £144, that could become £220 in April and another rise like that in Oct… and it’s £341, we’re a family of 4 in a typical 3 bed semi.

I’m looking into Heat Pumps.

i raised my DD (with Bulb) this morning from £180 to £280 in anticipation of what will happen. I’ve still got a dual rate meter (legacy before i did the hosue up) – was debating changing it, but not sure it’s worth it (we’re gas heating) and i work at home with limited elecy use during the day.

edit to add – bulb recommended i make it £330!!

Hope the Government look after those groups.

Jesus how naive?? Open your eyes FFS.

Can someone explain the rationale of why putting up interest rates is supposed to help the issue with paying increased energy prices?? I’ve read and watched on the news that they said it would stop people spending and encourage saving – not sure how this logic works when the price of everything goes/is going through the roof? Is this a scheme that frankly is out of touch with how most people actually live?

It doesn’t, but they try to make it sound like it’s a good thing. It reduces demand for non-essential goods, and in turn prices fall, which reduces the inflation indicators, that’s not the same as making things easier to buy.

From what I’ve read the BOE were holding off on rate decision, but not to increase them if energy costs went up, but to hold them to avoid squeezing us too much.

It’s all very worrying for the vulnerable and those on low income. Hope the Government look after those groups.

The rates are highest if you’re on a pre-payment meter, so the poorest will be hit hardest by price increases. It’s a poverty premium placed on those at the bottom of the pile by our wonderful system.

It’s bloody expensive to be poor in the UK. Those struggling most will pay a lot more per unit of power than those of us lucky enough to be paying monthly direct debits

How this is justifiable in any sane world is completely beyond me

And seeing as this is the government that withdrew the 20 quid uplift in UC when they knew this was in the pipeline, I think its safe to assume they will be doing absolutely nothing to help these people

agree wht everyone on pre-pay – always been fortunate to not be in this position – personally think it’s scandalous that the rates can be allowed to be higher – it’s an essential service not a luxury..

I’ll believe it when I see it, and tbh the amount of Corporation Tax paid by Shell in the UK could be a pretty trifling amount and still set a record. I’ve not seen more recent figures but they paid none at all in 2018 and 2019.

It was saying on Radio 4 this morning that Shell is in the process of moving all its corporate headquarters to London as post-Brexit Tax Haven UK will offer them the lowest tax burden in the developed world

Lads, lads, relax. We’ll just take it out of the 360million a week brexit bonus, sorted