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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

To not entirely understand about the £700 energy price cap increase

8 replies

LightSpeeds · 13/03/2022 00:13

I keep hearing that the energy price cap will soon increase by ~£700 -- even the government's website (here) states: "This will see almost a £700 increase in energy bills for the average household from April 1..."

Boris was banging on about this the other day saying we're all being helped significantly by the £350 'boost' (i.e. £150 Council Tax rebate plus £200 reduction in energy bill). So, in effect, halving that purported £700 increase.

MY annual bill, however, is increasing in April by at least £2000 and, from what I've read on MN, many other people's bills will be increasing by loads more than £700pa. (And that's putting aside the further increases in October and any increases caused by the problems with Russia.)

So
YABU and a £700 increase in your energy cost is about right (and that £350 boost will cover half of it)
or
YANBU. A £700 increase in your energy cost is way too low (for me, the £350 boost would only cover about 1 month's energy). And if so, what does Boris think he's talking about??

OP posts:
BankingOnChange · 13/03/2022 00:19

The cap is on the unit rate and standing charge and the £ figure they give is just representative of the 'average' household's use.

If you use more energy than average, you'll pay more.

IGiveUpalready · 13/03/2022 00:20

Don't forget the £200 reduction is not a freebie and will need to be repaid.

We are looking at an increase of close to £2000 as well, we have gone around the house turning everything off and trying to keep usage to an absolute minimum. By taking monthly meter readings and working out the daily usage for the last 3 months, , we have managed to cut down usage a fair bit. We are lucky that we can afford to buy a new fridge/freezer as our current one was over 13 years old. That will also save some, but not much. Having a 60 mile commute everyday is going to cripple me though

ikeepseeingit · 13/03/2022 00:20

Ours is going up by 350-400 a year from April but it’s the lowest number I’ve heard from anyone I know. The majority is £1000+ . We’re with octopus in a well insulated terraced house and don’t put the heating on much so that might help. We do have a dryer that we use three times a week and I’ve never worried about putting an oven on or anything. I will be more careful this year though.

nordica · 13/03/2022 00:36

The cap only applies to the standard variable rate ie based on actual meter readings. If you pay a set amount monthly then your provider can set this at anything they like.

makingmiracles · 13/03/2022 00:42

We’re on a standard variable tariff and our predicted increase is £978 for the yr. last months combined bill for g+e was £240 for just February usage. Heating now on very infrequently, max 2-3 hrs a day- a fine balancing act as we have damp problems so trying not to make that worse.

Feels like living on a knife edge tbh despite both being in work

Notcontent · 13/03/2022 00:45

The £700 represents what is considered average use. Obviously some people with very large houses and lots of appliances already pay a lot more than average.

LampLighter414 · 13/03/2022 00:52

You must be a heavy user and because of your usage the higher unit rates and standing charges will total an extra £2k for you (your provider will have estimated your typical usage based on your historic meter readings to calculate this £2k figure)

How big is your home? How many people live there? How is the home heated and how is hot water (and shower) heated? Is it well insulated to modern standards? Do you use your big appliances (e.g. Dishwasher, washing machine, oven) a lot?

Talia99 · 13/03/2022 01:00

My predicted increase is £570. I WFH and like a fairly warm flat so I may well try and reduce that (a heated blanket in the smallish bedroom I use as an office rather than having the heating on all day).

I have a small, fairly well insulated home and live on my own which makes me wonder where the £700 average is coming from. I would have thought most people used a lot more gas and electricity than I do.

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