I work for a small charity which has a business energy account. We prepared our budget recently and I spent over an hour in mid October with the energy supplier to obtain details of likely costs from 1 January when our current contract ends.
I was told that the costs would be capped at 7.5p pKh and the standing cost would be 28p a day(around £100 per year). I am now told that the 6 month contract cost is around 17p pKh (although this went up to 19p between our broker getting a quote and me getting one apparently a few hours later) and that the standing charge is about £600 per year. We are eligible for the EBRS (www.gov.uk/government/publications/energy-bill-relief-scheme-discounts-for-fixed-default-and-variable-contracts) which is likely to discount this by 3.3p but no one seemed particularly clear on this. The variable rate is 25p and the EBSR discount looks like 9p (from government information) but this could change?!
So in summary we are looking at a much larger bill than we expected and this will have a significant impact.
Speaking to our broker apparently the industry understanding in mid October was that the rate would be capped at 7.5p, but it now transpires that the Energy Company can set prices as high as they like, and they will be discounted by the difference between the wholesale price and 7.5p, which will help a little, but not much!
AIBU to be pretty shocked by this? And are others going to be in the same boat with significant consequences?
Any energy experts out there who can help!?
Also, I have just read advice here www.sseenergysolutions.co.uk/customer-help-centre/energy-bill-support/EBRS and it seems to say the EBRS only applies to fixed contracts signed after 1 December and the broker is trying to get us to sign today?