New energy price guarantee - the cost of gas is 2.5 times more than January 22

[cakeorwine]

For context:

Gas in Jan 22 was at 4p a KWH
Electricity in Jan 22 was about 21p a KWH

The new rates are:

Gas - 10.30 p per KWH
Electricity - 34p per KWH

www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022

So gas will be 2.5 times MORE expensive than in Jan 22. Electricity will be 50% more expensive

AIBU to think some people will be caught out by this - if you are a high gas user, your gas bill will be 2.5 times more expensive (plus the standing charge)

You are going to get £400 back as well - so maybe this will help. And at least it's not as much as the predicted increase. But it's still a lot more

Of course people will be caught out, but also the vast majority can cut back on usage. Yes there are people who are already on massive cut backs and struggling to pay, and rightly so these people have been given extra money to help, but this is only a small proportion of the population.
We turned out heating down one degree last winter. It cut £25 a month off our gas bill under the old prices and we weren't cold. That move, combined with the £400 help and new price cap will keep our bill at not much more than what we were paying before the price increases. Even if only for winter, it is certainly a huge amount of breathing space.

How have you missed the fact there is an energy crisis?

It's wholesale gas that has gone up in price almost 10x in the last few years though, so it makes sense.
Thanks for posting, I've been waiting for the figures so I can calculate my predicted bills.

I really haven't.

I am just reminding people that it has gone out of the news at the moment - and people may not know the new price compared to the old price last year.

I also haven't mentioned the price cap - because that will confuse people.

My spreadsheet model has been updated.

In my flat, it looks like the £400 will cover the increase.

Don't we need to go back to before the prices started rising in October 2021 for a fully accurate calculation? They were pretty stable for years before that.

My other tuppence is that £66/7 a month for six months won't cover the rise for most households.

The Jan 22 figure is the October 21 price cap levels.

I am struggling to find KWH prices for the October 20 - April 21 and April 21 - Oct 21 levels - I can find the price cap but not the actual KWH prices.

Same. I'm currently on a fix from last year that ends October 6th and paying £143pcm. I had arranged a new fix, based on predicted costs and the predicted rises in January and April as it worked out cheaper overall. That would have cost me £415 a month (the predicted SVR for October would have been £325). I've cancelled that and asked to go on the SVR. I'll now be paying around £230pcm, except the £66pm discount will make it more like £165.
I'm hugely relieved!

The government were never Going to be able to match the Jan 22 prices but this is a significant improvement and will substantially help a lot of people myself included

Thanks for posting the link, I didn't realise they had posted the unit rates yet I only knew of the ambiguous £2500, also this details what people like myself who fixed at a higher rate will have reduced. Very useful!

Christ some people are never happy. There was a risk you'd have been paying over 80pence KWh if the new price cap at £2500 just introduced hadn't gone ahead. I was quoted that by Eon, up from 29pKwh.
Thankfully now my new price is 27.54p Kwh. Have no gas so dont keep tabs on that.
And with the £66 per month rebate my monthly DD will effectively be £100 per month so what it had originally been for some years before prices went crazy.

It's not something I can see to whine about or even be bothered by as my prices are back to what they have been for years.

I've cancelled my fix as it doesn't take it down enough, but it will depend on the unit rates you fixed at. I'd fixed at 68.73p Electric and 16.80p gas. I would have saved overall if the predicted increases next year were true.

Christ some people are never happy. There was a risk you'd have been paying over 80pence KWh if the new price cap at £2500 just introduced hadn't gone ahead. I was quoted that by Eon, up from 29pKwh

I am saying that the price of gas is still 2.5 times what it was last year - and way more than back in 2020. So there will still be people who will be caught out as this is still significantly more than before.

The support will help - but I hope people do take steps to reduce their gas and electricity usage.

There was concern on previous threads re usage not going down

I think this rise will mean that’s not the case

Not everyone will know so it’s fine to point it out

Imo the balance between lower usage and higher cost plus cash payments for some to bridge the gap feels about right

In April 21, Gas was about 3p per KWH and electricity was about 19p per KWH

So gas is about 3.5 times more than 18 months ago and electricity is about 80% more than 18 months ago.

@RagzRebooted I had fixed with EDF at 12.98 gas and 42.27 electric with a £150 credit, so I'm pleased after being so worried that I'd fixed so high because there are £300 exit fees! I will now be slightly under the cap including standing charges.

Hopefully everyone will be ok with the new prices, albeit double what they were last winter. I do hope people manage but it's better than the alternative.