October 2022 price caps

  • meldrewreborn's Avatar
    Level 79
    OFGEM announced the price caps for Oct2022 to Dec 2022 this morning. The following data excludes VAT so you need to add that (5%) on.

    Electricity - the standing charge will be between £148 and £183 per annum depending on which region you live in. Unit prices will be between 50.09p and 53.83p per kWh, again depending on where you live.

    Gas - the standing charge will be £99.02 per annum - these rates apply nationally. Unit prices will be between 14.63p and 14.88p per kWh depending on where you live.

    the two fuels do not increase at the same rates. Gas units are 4+ times what they were in Apr 2021 while the standing charge has only(!) increased by circa £6.50 per annum. Electricity units are now just under 3 times what they were in April 2021, while the standing charges have nearly doubled.

    How the increases affect each of us differs because the amount of gas and electricity we use is not the same. I'm afraid a bit of maths is involved. But forum members who haven't fixed yet now have something to compare any fix price offers to. The price cap is likely to increase again in January so there cannot be absolute certainty in decision making.

    However electricity is nearly 4 times the unit price of gas, so in financial terms it makes sense to use gas in preference to electricity where there is a choice.
    Current Eon Next and EDF customer, ex Zog and Symbio. Don't think dual fuel saves money and don't like smart meters. Chronologically Gifted. If I offend let me know by private message, but I’ll continue to express my opinions nonetheless.
  • 1 Reply

  • meldrewreborn's Avatar
    Level 79
    The following are tables derived from the OFGEM announcement this morning. These are the prices (inclusive of VAT) for those on single rate supplies paying by Direct Debit on Standard Variable rates from 1 October 2022 to 31 December 2022. Prepayment customers pay on average £59 plus VAT and those paying quarterly in arrears pay £215 plus VAT on top of these rates on average.

    OFGEM allow a bit of flexibility to suppliers in that they can charge less on the standing charge, and then charge a bit more on the unit prices. I've read of 2 suppliers that did that in April 2022. Eon Next followed the methodology used here charging the maximum rate for the standing charge.

    VAT inc VAT inc VAT inc
    Electricity Maximum standing Charge per day £'s Maximum charge per kWh if maximum standing charge applied £'s Maximum charge per kWh if no standing charge applied £'s
    North West 0.4326 0.5132 0.5642
    Northern 0.4993 0.5009 0.5597
    Yorkshire 0.4955 0.5088 0.5671
    Northern Scotland 0.5107 0.5092 0.5693
    Southern 0.4441 0.5207 0.5730
    Southern Scotland 0.5066 0.5161 0.5758
    N Wales and Mersey 0.4860 0.5383 0.5955
    London 0.3316 0.5365 0.5755
    South East 0.4268 0.5316 0.5819
    Eastern 0.3894 0.5291 0.5749
    East Midlands 0.4577 0.5087 0.5626
    Midlands 0.4915 0.5157 0.5736
    Southern Western 0.5264 0.5171 0.5791
    South Wales 0.4917 0.5182 0.5761

    GAS Maximum standing Charge per day £'s Maximum charge per kWh if maximum standing charge applied £'s Maximum charge per kWh if no standing charge applied £'s
    North West 0.2849 0.1475 0.1488
    Northern 0.2849 0.1463 0.1476
    Yorkshire 0.2849 0.1467 0.1480
    Northern Scotland 0.2849 0.1470 0.1483
    Southern 0.2849 0.1488 0.1500
    Southern Scotland 0.2849 0.1470 0.1483
    N Wales and Mersey 0.2849 0.1477 0.1489
    London 0.2849 0.1494 0.1505
    South East 0.2849 0.1472 0.1485
    Eastern 0.2849 0.1474 0.1486
    East Midlands 0.2849 0.1466 0.1479
    Midlands 0.2849 0.1476 0.1488
    Southern Western 0.2849 0.1485 0.1497
    South Wales 0.2849 0.1482 0.1494

    The OFGEM tables are here:
    Default tariff cap level - 1 October 2022 - 31 December 2022.pdf

    The OFGEM announcement is here:
    Ofgem updates price cap level and tightens up rules on suppliers | Ofgem