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Price cap to fall to £3208 in April and £2200 in July

3 replies

cakeorwine · 21/01/2023 17:57

The price cap is currently £4279 (although it's being subsidised).
It's predicted to be £3208 in April and £2200 in July

However - I am not sure how helpful the price cap is when it comes to actually knowing your bill for the year.

This is because a lot of the actual bill is made up of heating, and most people's heating costs will be in the colder months.

My bill this year will have a cold quarter which has been subsidised, a quarter at the £3208 level (but little heating needed), a quarter at the £2200 level (with no heating) and then the final quarter hopefully at the £2200 level where heating is needed.

So someone who started measuring their bills from April and who is an average user will NOT be paying £3208 a year (even though this is the price cap)

So if I read this correctly, the price of gas and electricity will be expensive in April (assuming that it would stay at that price for a year and people used 12000 kWH of gas and 2900 kWh electricity) and then it gets cheaper in July as the price of gas falls.

People will be worrying about the April price - but a lot of their energy costs won't be at that price - instead most of it will be in the Autumn and Winter months of this year, and it looks like that price per kWh is coming down.

This is kind of why I think the price cap is misleading for the annual costs

OP posts:
frozendaisy · 21/01/2023 18:05

Still a lot of net income for a lot of households.

Stability will help but can anyone guarantee that stability?

cakeorwine · 21/01/2023 18:07

frozendaisy · 21/01/2023 18:05

Still a lot of net income for a lot of households.

Stability will help but can anyone guarantee that stability?

It will help

I think that there might be calls for subsidies if it's £3208 in April, but hopefully it will get cheaper a few months later when people need more of it.

OP posts:
LadySeafish · 12/02/2023 16:20

Phew! Our fix finishes in June.

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