To not understand ofgem price cap

[Kanfuzed123]

Right it’s not exactly and aibu but I’m posting for traffic as I don’t know what to do about my energy bills.

Currently on the variable tariff with octopus, we can lock into a fix for£190 a month, is this a good deal? Would you take it or chance it?

Could someone explain the ofgem price cap to me? I don’t understand how it’s a price cap when suppliers are going to be charging more even in light of the price cap increase

That estimate got revised to 47% a few days ago after the Ukraine war kicked off.

'Cornwall Analysts has upped its estimate of the Oct price cap to a rise of 47% over April's rise (£2,900 for someone on typical use). So means the new 'fix or stay on price cap' best guesstimate...

If you can find a fix cheaper than 25% above April cap, it now looks worth doing'

My understanding of the price cap is that it varies from region to region and supplier to supplier. The figures you see quoted for the price are the average. The price is capped at a certain percentage above what it costs for your supplier to buy and also distribute the energy to you. I think this is correct anyway!

I'm in the North East, didn't realise there was differences. Though woukd think ours would be cheaper as we're a poor area.

@dementedpixie

You need to look at the price per kWh that octopus are offering and compare it to the price cap price per kWh. Price cap only applies to non fixed rates ie. The standard variable rate tariff.

I will show you my offering from Octopus which I am declining for the moment. I have put the average price cap rates too for comparison

OK. So I've just downloaded my last bill from February and all 4 of my rates daily/standard/gas/elec are lower than the rates on your current example. So that's good right?

Sorry. That should say unit rate/standing charge x2 for gas/elec.

That’s what we’re currently paying and then what we’re offered… I can’t make heads or tails of this.

I hadn’t seen the revised cap for 47% again increase, thanks for pointing that out. What do we think? Fix or not?

@Kanfuzed123 Just looking at the price per kWh then the fixed electricity rate is 29% more than the price cap from April and the gas is 39% more than the April price cap

28p price cap or 36.21p fixed for electricity
7p price cap or 9.71p fixed for gas

[quote dementedpixie]@Kanfuzed123 Just looking at the price per kWh then the fixed electricity rate is 29% more than the price cap from April and the gas is 39% more than the April price cap

28p price cap or 36.21p fixed for electricity
7p price cap or 9.71p fixed for gas[/quote]
So leave it do we reckon? Per month it’s the cheapest we’ve found, 190 god I don’t know, I’m living up to my kanfuzed UN

It's similar to my offering and I've chosen not to fix

The loyalty tariff today has gone up to £230 for us now… 🤷‍♀️

At this point you have to look at the SVR as a six month fixed rate with no exit fees

@Kanfuzed123

The loyalty tariff today has gone up to £230 for us now… 🤷‍♀️

What are the charges per kWh?

Scottish power are offering me the following fix

Elec
Stdg chg 42.88
Per kWh 55.94

Gas
Stdg chg 21.46
Per kWh 19.01

So that's obviously a no!

This is what octopus will be charging on the flex rate from 1st April. You’ll have to ignore hubbys handwriting, it’s like crayon on a wet napkin

MrJolly those figures look frighteningly large. I’m stuck with Octopus as still haven’t had my final bill from my previous supplier who went bust last September. I think it’s worth staying on the SVR for now which means you’re protected for now. I had some quotes to fix at £7,000 per year and that was before Ukraine was invaded. It’s crazy but we just have to cut our usage for now. Btw I was paying about £2000 on a cheap deal last year.,
It’s the standing charge increase as well which isn’t helping especially for people who are lower users.

Not sure if you can read this but these are my rates on the new Octopus variable rate

Have you worked out your useage in kwh at the April price cap rates?
I have and it’s pretty much double my current, very low, fix which ends in June. I’ve only seen one deal that is comparable to the svr but I’d pay exit fees and an extra £250 between now and June to switch so I’m leaving it for now and crossing my fingers.
That is the only way of knowing if the offer is good enough to fix, most offers aren’t and it’s better to keep the svr.

@dementedpixie

Not sure if you can read this but these are my rates on the new Octopus variable rate

Very similar, for us it’s works out at about £160 a month on our current usage so £30 cheaper than the fix but then is the increase in oct again, potentially about 50% on. This is where my maths gcse fails me 😂