October energy price cap increase estimated at 64%

[Hugasauras]

From Martin Lewis:

'NEWS:
I feel sick writing this!
I've just got the latest price cap predictions from
@CornwallInsight
. A huge spike in the key year-ahead wholesale price means

OCT cap prediction UP 64% (so £3,244/yr on typical bills)
JAN cap prediction UP 4% (so £3,363/yr)

It's horrendous. Especially as we're now near the end of the assessment period that sets Oct's cap, so this is the right ball park.

The Oct prediction is now £450/yr HIGHER than Ofgem mooted in May & that was what Sunak based the £400-£1,200/yr help on.

More will be needed!

Please share. People need to know what's coming to see if they can prepare for it.'

Terrible Just checked our Octopus account and their fixed tariff offering is £500 a month for us.

You can work it out roughly but the cap actually varies a little by region and the rates people give you are and average.

So the current cap is 7.37p per kWh for gas and 28.34p per kWh for electricity and then you need to add your standing charges 27.22p per day for gas and 45.34p per day for electricity.

In October the forecasted unit rates are 14p/kWh gas and 43p/kWh for electricity. But that is highly variable and won't be locked in until August.

Thanks so much, makes a lot more sense to me now. Scary times ahead for most of us I think...

Yeah, it's crazy.. The number of people being thrust into fuel poverty and extreme fuel poverty will be through the roof this winter. I think that's 10% and 20% of income respectively. Somehow I need to help my stubborn dm by stealth so it doesn't hurt her pride.

Is it really 14p/kwh for gas? That is really scary. Last winter it was 4p so over a 300% increase.

That's just the figure you arrive at with the Cornwall Insights forecast.

And based on the assumption they don't dick around with the standing charges again.

It does now, it was only the first generation smart meters where that was the case. With the ones you get now you can change supplier as much as you like (not that it gets you anything at the moment!)

Ah ok - well will look into that....

We’re with BG and currently it’s 32p for unit price and 32p a day standing charge. That’s til December 2023. Judging by these prices, that’s cheap although we wouldn’t have been saying that 12 months ago 😢 Honestly, where do these companies think people are going to get the money from?

If you fill in a P87 online, you can get £6 a week towards heating/lighting. Might work out cheaper than driving to work?

Meanwhile...

Please be kind. If I posted my annual projected usage for gas and electricity, would anyone be able to calculate what my rough annual cost would be? I think I have worked it out roughly with the figures posted above, but it's not as catastrophic as I imagined, so worried I've done something wrong and will be in for a shock. I'm still on a fix from last October currently, so it's going to be a shock anyway! 2 young kids, so obviously I worry.

Just in case anyone can help: Gas 5156 khw and electricity 2690 kwh. I worked it out to be about £180 a month? But that seems too little. My DD is currently £90 a month.

Yeah, that's right using those forecasted figures. I have it at £2141 for the year and just shy of £180 per month. Your usage is well below average, especially your gas. We had quite a mild winter last year so it might be worth setting aside a little more, just in case you need to consume more gas this year.

Although actually, it might be less - depending on how the covid debacle hot your home.

Hit

@FourTeaFallOut Ah thanks so much for taking the time to do that. And yes, my kids both have really bad eczema and heating makes them so itchy. Thermostat never goes above 17, we're more about the jumpers in our house. Thanks again.

@BalloonsAndWhistles it’s tax relief so it’s not £6 a week it’s £1.20.

I'm on flexible Octopus and based on usage they are projecting £90 per month and have offered £150 fixed - is that a good deal? £150 seems a lot lower than others but it's a lot more than £90!

You need to not look at the monthly figure and look at the actual rates vs your actual consumption.

France has just nationalised EDF, price hikes limited to 4% and 14% for lecky and gas respectively, also includes business tariffs too.

If they can do this, to protect the consumer and hence the economy, why can't we?

These increases won't bother Sunak or any other front runner for the next PM but they will devastate many in the UK.

I don’t know how we’ll be able to cut back, I’m really worried about the future increases.

They can’t. Because someone has to pay. France did a vote winning move during election season. Let’s see how well that plays out for the current sick man of Europe.

don't pay.uk twitter

Don't be ridiculous.

France limited electricity costs to 4% including businesses and energy companies are still making large profits on energy sold to UK consumers.

The Tories could do a hell of a lot more to help but for political reasons wont.

This is not quite right. It’s tax relief ON £6 a week not OF £6 a week so it’s about a quid or so a week. Also new rules state you can only now claim it if you HAVE to work from home, not if you choose to.