OFGEM Price Cap April to June Announcement 27th Feb

[nowty]

I just noticed in the OFGEM announcement yesterday, there were some unit and standing charge prices. But I believe these are BEFORE the government price cap which should knock about 10% off them. They do differ a bit from the Cornwall Insight figures, so when I have time, probably tomorrow I will do a recalculation based on the standard leccy / gas split like I did in message 8, https://camelot-forum.co.uk/phpBB3/view ... 893#p28792

https://www.ofgem.gov.uk/publications/o ... cap-update

"From 1 April the equivalent per unit level of the price cap to the nearest pence for a typical customer paying by direct debit will be 51p per kWh for electricity customers and a standing charge of 53p per day. The equivalent per unit level for a typical gas customer is 13p per kWh with a standing charge of 29p per day."

[nowty]

I did a little calculation but I don't know what the effect the government price guarantee makes on the standing charges.

All I can make is an approximation for the standard flexible unit prices. Compared with the ones I calculated last week, leccy looks slightly less and the gas is slightly more.

46.0p / kWh for leccy (increase of 35.3% from the current typical 34p).
11.7p / kWh for gas (increase of 17.0% from the current typical 10p).

[nowty]

Looks like it might be panic over with no price rises in April as energy suppliers are now expecting the government price guarantee cap not to rise in April, I think this is inevitable because you can imagine the political fall out if there were significant price increases for just 3 months with all the OTT increases of direct debits for just 3 months before the OFGEM price cap falls below the current government price guarantee in July.

https://www.bbc.co.uk/news/business-64830701

"Typical household energy bills are set to rise to £3,000 a year from April, but calls have been made for the government to retain its current level of support so they stay at £2,500.

However, industry sources told the BBC that some energy companies have already started amending future bills to reflect that energy help will continue at or very near to current levels beyond 1 April.

Chancellor Jeremy Hunt to date has declined to extend the support at the current rate, but experts have suggested it is increasingly likely he will change course, probably at the Budget on 15 March.

Speaking to the BBC's Today programme, Martin Lewis said there there was a strong chance prices would not rise in April.

What happened yesterday was that was the deadline for them [energy firms] telling the pre-payment meter providers... what the new April rates would be, and what I have heard is some of the firms have kept it at the current rates," he said.

He added that he had heard that there was going to be "an attempt to keep the rate at £2,500."

[AGT]

Good to hear, that’s positive news for families who are financially struggling.