an energy cap of 2500 - still double energy bills this winter?

[yih8979kh]

The figure of 2500 a one possible energy cap has been doing the rounds on the media -www.bbc.co.uk/news/business-62801913. It's definitely better than 3500 but doesnt that still mean that our energy bills will be double this winter seeing as last winter's cap was 1200? We paid 180 per month last winter, will it be 360 this Dec? Yes, we get 67 pounds off or something but thats still quite a lot more per month than last year.

@1dayatatime but if current price increases were to happen that would hit most people , even if indirectly
Those households on £50/60000 with nursery costs and mortgage wtc
Disposable income can be very different
Plus businesses will go out of business and therefore more people out of work, less investment etc
Why the big push for electric cars when all these proposed blackouts ?

I think some people just don’t read newspapers or watch the news.

@SteadyNowBetty tbf ive read some news but not read if £400 will still go ahead just bits about price cap etc but don't actually understand what that will do to my bills
I just want fo know what the price i will pay will be if i use same in oct as i did this month etc

There are 2.6m millionaires??

All depends on what gets announced.

Ive worked out our bills based on the unit price announced already, that is 54p for electric and 15p for gas, is that not the proposed price now?

I dont understand it when people talk in terms of thousands of pounds per year, its meaningless because everyone uses different amounts.

So will the cost of electric - say 29p per kWh stay the same or rise to 50p per kWh in Oct

It's a cap. Energy

No one knows yet.

If nothing happens, it will go up.

Posted too soon.

Energy companies may charge less per unit. They may offer different rates but cannot go above the cap.
I currently pay under the current cap. I'm not on a fixed rate so it will go up but I dont know if they'll keep charge me under the cap or go all the way up yet.

I'm still going to aim to reduce the amount of energy the house uses.
It's a tiny breathing space. I hope.

I was going to get solar fitted to hedge against 5x or higher prices but if it’s being capped to double I won’t bother as it takes too long to earn it back

A price cap?

Or capped amount of energy we use?

I dont know how that would work if its an energy cap, we dont have a smart metre for example so how would they know at the time if we reached a usage cap (if thats what you mean?)

As far as I know there's been no announcement yet on how any subsidy is going to work?

The simplest way to do it is to increase the six monthly payments to the amount needed to bring the average bill down to the target. That still leaves people with a big incentive to use as little electricity and gas as possible.

I hit post too soon. The rest of the sentence is in my next post.

I am confused by the term price cap.
I assumed it meant that the maximum price would be x - but based on usage. Is this not the case?
It sound very much as if people think they will pay the price cap /12 per month, but surely that would mean some people paid more and some people a lot less?

@gogohmm I always wonder what I’m doing wrong or how it’s so different when I see things like this. I have my thermostat in tbe coldest room in the flat and it barely kicks in at 18, and it gets freezing in there. It probably doesn’t get below 16/17 on a freezing night so if I have the heating in at 18 it warms the house up 1 degree and it’s still freezing. I have to put it on around 22 to feel a noticeable difference.
i don’t think 18 would be enough even if I moved the thermostat to the living room which is the warmest, but even if it was the bedrooms would still be so cold.

Ive got you now, I never notice the names next to posts, I find this site impossible to follow at times

I asked about this on another thread, whether a fuel company can choose not to charge the cap limit, but the poster who replied said that they will absolutely charge the price cap limit because if they dont they lose money so Im expecting 54p.

It's the maximum price you would pay for each unit (Kilowatt hour) of energy.

It is currently 7p per KWH for gas and 27p per KWH of electricity.

So someone who uses 10,000 KWH of gas pay 10,000 * 7p = £700
Someone who uses 20,000 KWH of gas would pay £1400

There is also a fixed daily rate - 27p for gas and 48p for electricity per day

Well this is why the title of this thread even threw me.

Its not an energy cap for a start, that made me panic about blackouts!

Its a price cap and its per unit of fuel, so electric and gas.

Its so unhelpful when people talk in terms of 2500 as per the title, it means nothing. Our energy cost at the new capped prices announced are around 1900 a year. Some others might be 5000 pounds though, so they'll see a headline quoting 2500 and think they have nothing to worry about!!!

Actually that cant be right what Ive quoted there, I think our new cost is 3600 pounds per year based on last years use. Which Im going to cut back on hopefully.

Its so unhelpful when people talk in terms of 2500 as per the title, it means nothing. Our energy cost at the new capped prices announced are around 1900 a year. Some others might be 5000 pounds though, so they'll see a headline quoting 2500 and think they have nothing to worry abou

TBF - the word price cap and the numbers have been around for a while now.

Unless I’m reading by bill wrong I definitely pay more than that. 31.21p per KW for electric and 7.49 for gas.

Are you on a fixed rate?

Today we've had our latest 6-monthly bill from our energy supplier. We got a refund of £88 to put us back to zero and a new projection and monthly directly debit for October onwards.

We were paying:
27.36p per kWh and 48.53p per day standing charge for electricity
7.28p per kWh and 27.22p per day standing charge for gas

On October 1st it goes to:
50.88p per kWh and 49.54p per day (elec)
14.671p per kWh and 28.48p per day (gas)

Our annual electricity usage is 3,400 kWh electricity and we use 17,250 kWh gas.

So, we are going from:

£930 elec and £1,256 gas plus £277 total standing charge = £2,463 = £205 p/month.

To:

£1,730 elec and £2,531 gas plus £285 total standing charge = £4,246 = £378 p/month.