I don't follow how the charge can differ. If the cap is to limit costs to £x over an average of y KwH, shouldn't the unit cost be the same for everyone - or else Joe Bloggs will pay £2500 and Fred Bloggs £2600? I'm not sure if the daily rate was part of that calculation, so I'll ignore that bit!
...that confuses me even more - especially the line:
'...The table below shows the average price-capped rates for a customer with typical usage paying by direct debit....'
...as don't they pay that amount whether they have typical usage or not?
I obviously don't understand the price cap at all. I thought it was:
The average house uses x KwH gas and y KwH leccy. They can't pay more than £2500 at those usage limits - so a price was set so that the total of x at price p1 and y at price p2 = £2500.
...then if you use more or less than the average, you still pay at those unit prices. No?
Confused of Eastbourne. Just write Turmoil on my forehead.
I don't follow how the charge can differ. If the cap is to limit costs to £x over an average of y KwH, shouldn't the unit cost be the same for everyone - or else Joe Bloggs will pay £2500 and Fred Bloggs £2600? I'm not sure if the daily rate was part of that calculation, so I'll ignore that bit!
The cap only applies to a supplier's 'default energy tariff' so anyone on another tariff might see different rates being applied. I've no idea why this is the case and apparently your supplier doesn't have to stick you onto a capped tariff if they don't want to.
If you can keep your head, while those around you are losing theirs, you may not have grasped the seriousness of the situation.
Fine - but as far as I can tell there aren't many providers offering anything other than the fixed tariff at the moment. The Shell EMail that covered the price changes implied this was their fixed tariff - it said:
'...
The Government has launched the Energy Price Guarantee to help households with rising energy costs. Here’s what it means for you and your bills.
The Energy Price Guarantee limits how much you’ll pay for each unit of gas and electricity you use. It means that the average household paying by Direct Debit, with typical energy use, will pay £2,500 a year for their energy. This will save the average house £1,000 a year, while the average flat saves £700.*
Remember, it’s the unit price of your energy that’s capped, not your overall bill, so the more energy you use, the more you’ll pay.
While the Energy Price Guarantee protects you from the very large price increases – .driven by extremely high global energy costs – you’ll still see an increase from your current rates.
On Saturday 1 October 2022, your new rates, as set out by the Energy Price Guarantee, come into effect. These form your flexible tariff, referred to as Energy Price Guarantee Direct Debit.
Standing charges are a daily fixed amount we pay suppliers for our
gas and electric. It varies by region due to the different costs to
transport power to where we live.
The charge pays for costs that are fixed for a supplier on a per
customer basis. This includes service administration fees, connections
to and maintenance of the energy network and government schemes to help
reduce carbon emissions and fuel poverty.
...'
I still can't get my head around why we're seemingly (Quasi) being charged different rates (edited) to achieve £2500 for the average usage.
Posts
Standing charge: 48.9 to 49.9
Gas: 7.2 to 10.2
Standing charge: 27.2 to 28.4
£555 in credit so, with that and the monthly government payment, they’ve reduced my DD by £3 per month.
https://www.businessforscotland.com/the-great-british-electricity-swindle-how-scotland-subsidises-the-uks-energy/
https://www.scottishenergynews.com/higher-connection-charges-in-scotland-than-ruk-are-no-barrier-to-electricity-generators-says-national-grid-chief/
I wonder if @raisingirl can help?
Standing charges are a daily fixed amount we pay suppliers for our gas and electric. It varies by region due to the different costs to transport power to where we live.
The charge pays for costs that are fixed for a supplier on a per customer basis. This includes service administration fees, connections to and maintenance of the energy network and government schemes to help reduce carbon emissions and fuel poverty.
...'