Energy prices set to rise another 40 percent.

[flapjackfairy]

So it seems Jeremy Hunt is refusing to lower the price cap despite falling gas prices meaning we are looking at another 40 percent hike in April.
We have 2 severely disabled kids who rely on lots of medical equipment and need a warm. house to stay well and that's not to mention the endless washing.
We paid £700 for December and are looking at around £600 for January so another 40 percent sees us paying up to a thousand a month in the winter.
I know spring is on the horizon but how on earth will people cope next winter ?
And all whilst energy companies double their profits to mega billions! It is disgusting!

So on this tariff, you also get the energy price guarantee deduction. If prices go above roughly 34p per kWh for gas and 10.3p per for gas you will get the discount applied. So it can go higher than these prices.

Today tracker rates are 25.55p per kWh for electric and 6.49p per kWh for gas!

If it goes above 34p and 10.3p you would get this discount.

33.43p /kWh discount against your electricity unit rates

6.7p / kWh discount against your gas unit rates.

So it would need to shoot up a lot and you would notice that!

You only get the discount when it goes above the SV rates.

Flapjack that's why Martin Lewis has written a letter but you can take action yourself with this tariff.

You'd be better off putting some money in an interest bearing account. Keep the interest for yourself rather than handing over even more cash

You'd be better off putting some money in an interest bearing account. Keep the interest for yourself rather than handing over even more cash

Have been doing that with the £ 66 a month that's not taken from my account as a DD to energy company. Along with the heating allowance am trying to build a nice cushion for next winter.

The energy cap is ending, so that's why there's a 40% increase in April

but with wholesale prices lower than in August 2021 why is the price going up 40% to the consumer when the price is going down wholesale?

Hang on.. so say it goes to 35p and you get a discount of 33.34p, does that mean you're only actually charged 1.66p? This is the tracker tariff, right? Or am I getting confused?

Good question! No, when the price goes ABOVE the price guarantee which is 34p per kWh ish for electricity and 10.3p per kWh for gas this discount is applied BUT it cannot be discounted below the EPG.

So the price can increase 33.43p above the EPG but you won't pay any more than you would have on the standard variable. If prices are below the EPG you just get a cheaper rate with no government discount.

It can go up to 100p per kWh for electricity, as an example, as that is the Octopus Cap but you would see that coming a mile off.

Does that make sense?

@sazzleevans Thank you for all your info. The graph is fascinating!

Because the prices NOW are lower but the SV isnt based on price NOW it's based on prices BEFORE the assessment period and since then they have come down.

The tracker tariff is based on the price reductions as it follows wholesale prices NOW.

Does that make sense?

This one shows how it changes every half and hour.

I prefer the graph though I don't need to drill down any more as you only need the day-ahead price. I have other things to do with my day lol

Yes it makes sense! Thanks for the explanation!

No, the energy price cap isn't ending, it can be confusing. It gets recalculated every quarter based on historical prices.

So the EPG which is the discount stays in place until April but the discount isn't due to increase and the Energy Price Cap is set to rise.

Then in July when you'll see the wholesale prices we are seeing NOW will be reflected in the Energy Price Cap in July. However, the government discount, EPG, will end so your not going to win very much!

The way you win in the short term is to switch to a tracker tariff where you see those lower prices now and you still have the protection of the government discount.

Here is Martin Lewis explaining part of the issue.

No problem I have just worked out quotes lol😀👏

Wouldn’t it make more sense to put any extra money into a savings account that earns interest?

Absolutely. You can get 4% on a one year fixed savings account at the moment.

Not to mention the near impossible task of trying to get energy suppliers to pay you back your credit (if it doesn't end up being used) and the hassle of getting back your credit if they go into administration.

Its capitalism and Ukraine we have to support both apparently.

My 15 yo daughter told me quite gleefully she was getting an extra 3 quid a month on her spending money account in interest so found the interest rate hikes quite beneficial. I pointed out it wouldn't be so beneficial when we couldn't afford to go to Greece this summer because her 3 quid wouldn't really make much of a dent in the extra mortgage interest once we're out of our fix. She said "oh shit I didn't realise you were in debt".

Sorry, off topic, just would LOVE to be in the position of a 15 year old where all you think of is "ooh an extra 3 pounds, perhaps I'll buy a nail varnish". Perhaps I'll raid her savings 😂😂😂

I'd rather support neither. Don't even get me started on that grifting, coke addled, piano playing with his knob actor.

Just wanted to say a big "Thank You" to @sazzleevans for mentioning the Tracker Tariff. I am already with Octopus but I was not aware of this. I have just switched, it just took a phone call and effective immediately. Did you manage to find how to add a daily alert to an Android phone please? I think this would be really helpful (and probably addictive)

No, but I did see it!! It is half term so busier than normal with kids but will try and find it. It's so annoying as I know it does exist!!

Just check once every few days the price and you'll spotted any rises but i think you'll be better off for a while!

I looked in my Shortcuts but there’s nothing about gas or electricity there.

So can you switch in and out of this tracker scheme ad hoc?

So you check it each day and if the prices have gone up to, or are approaching, the current cap then you just switch back to the standard tariff?

YAYAYAAY!!

Google octopus tracker shortcuts and you will see guides set up how to do it. You don't need to use the shortcuts you can just check the Octopus app and it will tell you how much you are paying that day.

You would save around 20-30% at the moment compared to the SV and if wholesale prices rocket, which there is no sign they will, you just DM octopus or email and they will switch you to another tariff you choose.

No but leave it with me I WILL!

thanks to posting this thread we have applied to octopus to go on the tracker this afternoon so really hope we can make some good savings.So cheers guys.