To think they are lying? ... electricity prices won't be going up by 50% in April ...

[Shouldbeworkingnotreadingtalk]

Keep reading that electricity prices are going to sky rocket by "upto 50%"... so I worked mine out whilst doing some house admin . . I'm shocked at the actual figures ...

We currently pay 21p per KWh of energy used. (Viable rate.) . Predictions once the price cap ends are for unit prices in April is anywhere between 40-48p per unit. . (From googling / Martin Lewis ), I could be reading this wrong ...

Or

I can fix a rate today with my current supply eon for 38p.

Is this maths right? (Well, I know it is!)

Say hypothetically we use a slightly higher than average 9,000 unit a year:

21p x 9000 = £1,890 (£157pm)
48p x 9000= £4,320 (£360pm)

Doesn't include standing charge or vat on those prices either!

That feels like a crazy hike, more like 120% increase (?) - so why aren't we being warned a bit more .... We are a ridiculously heavy user, (big house, tumble drier happy, old inefficient freezers in garage etc, no gas so everything electric,,) so this week I've condensed some freezer space, losing a big old girl that leaked ice, and ordered x2 airers for the washing.....
I'm still looking at many other ways to lower my kilowatt useage - (I've warned the fish their pond pump may have to go on timer ... ).

But my AIBU is that I'm miffed at 50%, surely it's much, much more and we are in for a huge shock?
VERY HAPPY (relieved) to be told I've got it wrong and IABU.

@Shouldbeworkingnotreadingtalk yes, that's about right.

gas calculations are different

Solar panels are not really a paying proposition now the FITS subsidy has stopped.

@MojoMoon

The most effective thing to do is to give cash to those who need it.

The government should restore the uplift to universal credit immediately (and increase it)

The comfortably off can and should pay the market price for power because it should incentivise them to improve their insulation and reduce their energy demand.

If you try and cut prices for everyone, those who benefit the most are those who consume the most - so those with big houses, heated fish ponds, sex pools and so on.

Cash to the poorest is the most efficient thing to do. Anyone in receipt of housing benefit for example could be given a £20 a week cash uplift.

So what happens to people on low to middle incomes who don't qualify for any benefits but have very little money left at the end of the month? So many working people will be affected and salaries are not going to go up, in fact the National Insurance hike will mean the money coming in each month will go down. Maybe the government should give something to all basic rate tax payers and not just universal credit recipients.

Thanks @PigletJohn - I thought so. . . I've looked at panels and they seem a bit of an outlay - we are unlikely to live here more than 5 years, so doesn't quite seem worth it ....

Your'll know this - (I've seen your many plumbing posts ) ... am I doing it right because I'm now getting obsessed with working out how much power "everything" uses, out of interest if nothing else ...

LED lightbulb. 5watts. So I can have it on 24hrs a day, 7 days a week and it costs
5w x 24hrs = 120watts used.
120watts x 365 days in a year 44kWh ?

At 21p, 44kWh is £9? (They are those fairy lights on a wire)

So I can use an led light string on constantly for a whole year for £9? ... so assuming it's off 12 hours of the day, it's only £4.50...

But an Aga that is 1.5kwh is
1.5kwh x24 is 36kwh per day.
13,000kwh a year x .21p is £2,760?

I don't have an electric Aga, but I know people who do, and they are on all the time?? ... this can't be right surely?

I've clearly got too much time on my hands ....

Well they do say Agas are expensive to run, I have no idea how expensive, but the question would be how much of the time they are on are they actually drawing power?

You would hope there is some insulation so you heat them up to the desired temperature then the heater goes off a bit and they just sit there until they have cooled down and then the heating bit comes back on again.

But they do serve as a heater as well as a cooking device so you might get away with less heating in the part of the house in range of the Aga.

Absolutely @nordica. @MojoMoon just because people aren’t on UC doesn’t mean they can suddenly afford literally hundreds more a month on gas and electricity + the additional costs on insulation, solar panels etc. most people tend to live to the limit of their means unless very wealthy so don’t have the ability to suddenly pay so much more. We have a decent household income but little disposable income due to high childcare costs. Given the increase in childcare fees, the increased in NI due in April, the increased cost of food, rising interest rates in mortgage etc etc and don’t have the budget to suddenly pay so much more on electricity. Pretending it’s only the poorest that will be affected is ridiculous.

I’m watching my bill closely. We are moving soon. I do wish I had solar panel money. To be fair op I wish I has a small holding it’s the goal one day.

Part of me wonder if all this smart bulb stuff is worth it compared to boring old led. It must cost me more but actually then everything is only on or off as I say so or motion bulbs for the landing for the children. Hmm

Solar panel costs have come down a lot so I wouldn't rule them out, especially if you have an EV.

I had a message from the gas people wanting to increase by dd from £16 a month to £99.
I rang and said I know your prices are increasing and I expect to pay more, but that is taking it a bit too far. She then looked at my account and said it was an error. Anyway I am now paying £34 pcm which is acceptable but I had to go for a fixed rate.

I think they should supplement the first so many units, so that people using a conservative amount of energy for their home size/ family size will feel the benefit, those running very expensive things are paying a premium specifically for the excess after normal expected usage, maybe pricing on a sliding scale so people heating swimming pools are paying much more for the units after expected normal usage.

Like a Low use rate, a medium use rate for units after low and an excess usage rate after normal living is estimated.

@Isthatthebestyoucando that seems like a fair way to do it

@BarbaraofSeville

We are being warned about it. Martin Lewis has covered barely anything else for months, he's on multiple TV & radio shows every week talking about it. If you try to change your utilities, the fixed prices have rocketed.

It may or may not be right to fix, depending on what you are offered. I looked at fixing and the gas rate was double, the electricity was about 40% up, so I left it as we'll just continue on the price cap rates, which are currently least expensive.

But the other thing we all have to do is look at reducing our usage and if we're doing environmentally irresponsible things like heating a hot tub with electricity(!) then yes we have to expect that to be very very expensive. As a nation, we don't have the resources for that sort of luxury any more.

Yes. All those saying the media hasn’t covered it—I can’t understand this. I’ve heard a lot about it in all media, especially Martin Lewis. And for some months now.

@Shouldbeworkingnotreadingtalk

you are right, the cost of energy-saving or LED lighting is negligible. If you still have old filament bulbs, or halogen spotlights, look into replacing them.

Also negligible are phone chargers. And a modern bathroom fan will run for 100 hours on 22pence of electricity.

Heating appliances are the most costly. If you have a gas boiler, it delivers energy at about a quarter the cost of the same amount from an electric heater. This includes water heaters.

Tumble driers and fan heaters use a lot, because they are high wattage and may run continuously for a matter of hours.

Washing machines, kettles and dishwashers are high wattage, but the heating part of the cycle is very short. My washer heats for about ten minutes at the beginning of the cycle. The churning motor is very little.

I don't know the usage of an aga, but if it throws out enough heat to warm the kitchen, it is acting as an electric heater, which is expensive.

@PigletJohn, if you have a gas hob, would it be cheaper to get a stove top kettle and boil water on the hob instead of using an electric kettle?

I often wonder, when I see the smart meter display go into overdrive every time I put the kettle on. I drink gallons of tea, too.

My monthly direct debit has reduced by £100 recently but I suspect that will be going back up pretty soon. It will be hard for many people, my hot tub won’t be going back on in the spring this year if that’s the case. Electricity price higher working at home but no travel costs so swings & roundabouts

I think an electric kettle is very efficient as hardly any heat escapes. If you only put a mugful of water in, it will only heat for, what? Two minutes?

OP mentions a fixed rate being available
I'm on a fixed rate

This thread has confused me

Is the fixed rate going to alter in April?

@EmmaH2022

OP mentions a fixed rate being available I'm on a fixed rate

This thread has confused me

Is the fixed rate going to alter in April?

Unless your fixed rates ends in April then the clue is in the name, it won't alter as it's fixed.

But do be sure to understand that it's the rate per unit that's fixed not the amount of £££ that you use. Make sure you are submitted actual eter reads if you aren't on a smart or prepayment meter so you aren't getting behind or overpaying

givememykeys thank you.

@EmmaH2022

OP mentions a fixed rate being available I'm on a fixed rate

This thread has confused me

Is the fixed rate going to alter in April?

It's the price cap that changes in April.

Until about a year ago, it was usually cheaper to be on a fixed rate and these normally ran for a year at a time, or sometimes 2 years, or until a certain date.

However, then the wholesale prices started increasing massively, so the fixed rates started getting more expensive.

But in order to protect people who never bothered hopping from fix to fix, there is also the price cap. This is set every six months, in October and April and is related to the price at which the energy companies buy from 'the market'. However, because the wholesale price is increasing so fast and is quite volatile, the cap keeps falling behind the price at which the suppliers would like to charge.

But currently, unless you're on a legacy cheap fix, ie one you signed up to more than about 6 months ago, it's probably best to stay on the standard/'variable' price cap tariff, but keep an eye on available fixes, just in case cheaper ones become available.

Also keep an eye on your account balance and independently work out what you should be paying, so you don't get into debt, or fall for your suppliers 'we need to massively increase your direct debit' tricks. Ideally you should be paying 1/12 of your annual energy cost each month, aiming to be at zero in the summer, so you build up a bit of credit over late summer/autumn, lose it and get slightly into debt in winter/early spring, before paying it back as the weather gets warmed and the daylight levels increase so you can use less lighting and probably use the tumble dryer less too.

Current estimation is that the price cap is going up around 50% in April after it already went up about 30% in October, meaning that typical domestic prices will have almost doubled in a year.

Plus many people could see their prices increase by even more than that, if they were on a cheap fix before October 2021, because these were far cheaper than the pre 10/21 price cap, so cheap that they contributed to many of the cheaper suppliers going bust, because they were then forced to sell energy at a loss.

Where did you see 40-48p? I can't find these figures anywhere (not saying you're wrong just very intrigued)

Energy Industry person here. I would stay on the variable tariff for the next couple of months as its a much lower price than any fixed rate you could change to at the moment , so you'll get most of your winter consumption on this lower rate . Then change to the lowest fixed rate you can find in March before the price cap announcement . Be wary of high exit fees though when looking for a fixed tariff as the cap means that the standard variable can go down as well as up, though this is unlikely.

@Shouldbeworkingnotreadingtalk

Old style tumble dryer costs about 75p to £1 per load on lower rates - more when it goes up 50%. Change for a heat exchanger dryer, it is more like 25p per load. Ours was expensive £799 but it pays for itself really quickly - e did approx. 11 loads a week and it paid for itself in 3 years. With the change in prices it should be sooner than that!

Changing to all LED bulbs pays for itself in about 9 months.

Changing any fridge that is over 20 years old pays for itself really quickly too... Old appliances are very energy inefficient.

I thought the new price cap is set in February and kicks in on April 1st? Would the fixed rates on the market now still be around before the April 1st date?

@FourTeaFallOut

I thought the new price cap is set in February and kicks in on April 1st? Would the fixed rates on the market now still be around before the April 1st date?

You are correct about the price cap

The fixed rates will change all the time depending on market conditions, no one knows what they will be in April hence the massive uncertainty for all of us. You would need to check the specifics of any quote to see how long that price is valid for.