OFGEM July Price Cap Announcement 25th May

[nowty]

The next quarterly price cap update will be on 25 May 2023 for prices July to Sept.

FT report here,
https://www.ft.com/content/56e446cb-9ef ... cc0393fb92

Paywall removed link for the same FT report here,
https://archive.ph/txz44

Looks like its going to be roughly 1/3 off the current government price guarantee, so that suggests standard prices of gas at around 7p / kWh and leccy at 23p / kWh. Probably no reduction in cheap rate IO / GO octopus tariffs as the recent reduction of those has the reduction already baked in.

October prices are forecasting a much smaller cut in prices.

My octopus gas tracker is 3.8p / kWh today, not that I'm using any.

[Joeboy]

3.62p per kWh here today. Good news for those that need it.

Very glad that we don't.

I said to SWMBO last night 'not paid into power account since Oct'. I then thought but that's tail end of solar season so how did we actually do? Turns out that since March 22 we have placed £60 into power account (6x£10 monthly payments).

Admittedly there was a bit of a convoluted path across the Winter + govt grant to get here.

The really thrilling thing is that Kirkhill is not so far off producing. Once it does I'm hoping to be zero gas & zero payments (FOREVER) outwith the 9 turbines generation. That will be epic!

[nowty]

I think I got my maths wrong.

I was thinking the government price guarantee was £3000 per year but its £2500 a year so the savings are going to be around 20% and not a third like I alluded to.

This would mean (my simple maths) standard rates are likely to be gas at 8p / kWh and leccy at 27p / kWh.

However Cornwall Insight (they are usually right) thinks the gas will be a little lower and the leccy a bit higher than my simple maths. So is this the new normal which is 100% higher than it used to be. If it is the ripple DW offer looks like good value to me, only 2 days to go if they are not telling porky's.

https://www.cornwall-insight.com/press/ ... price-cap/


And fecking hell, the standard charge continues to increase.

[Yuff]

When will they actually encourage/reward customers for going green?
Gas drops more than electric ……really!!!!!

[nowty]

The announcement has been made, OFGEM have tweeted,

From 1 July average direct debit unit rates for energy [standard rates],

ELECTRICITY
Unit rate: 30p per kWh
Standing charge: 53p per day

GAS
Unit rate: 8p per kWh
Standing charge: 29p per day

Because of the government price guarantee keeping prices down in previous control periods, the prices don't actually change much.

I'll try and find the E7 rates later.

[smegal]

When will they actually encourage/reward customers for going green?
Gas drops more than electric ……really!!!!!

I'd argue 30p/kWh is still a pretty good incentive to go green.

[nowty]

Octopus have released their flexible prices for 1st July, now we know the E7 prices.
https://octopus.energy/blog/energy-price-cap-july-2023/

[AE-NMidlands]

The standing charge stinks... over 60p per day for me would be 28% up on what I pay now (admittedly on a different tariff,) which itself doubled last October! It's a poll-tax and shockingly regressive. I wonder how many people will take it up? I shall have to do some sums to see how much day rate you would have to avoid to not pay more overall...

But maybe this poll-tax isn't quite so bad if it is "only" penalising those who had money to put into solar pv?

[nowty]

But maybe this poll-tax isn't quite so bad if it is "only" penalising those who had money to put into solar pv?

Thats exactly what OFGEM decided a few years back after a consultation about transmission costs reform. They said wealthy people could avoid the costs with PV and batteries, so they decided to take some costs off unit rates and add them to the standing charge. No one really noticed until It all went a bit wrong last year when they doubled the standing charge to pay for the failed supply companies they were regulating.

https://www.ofgem.gov.uk/publications/t ... assessment
"Residual charges will be levied in the form of fixed charges for all households and businesses."

[Andy]

I wonder if there is time limit for when the energy company needs to let you know the new rates. I still haven’t been informed with less than two weeks to go.