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Rich2468
Without knowing the figures you're talking about it's hard to be sure, but this may be (at least partly) because energy prices increased for most people for usage on or after 1st October. The energy price guarantee came into play then, but even with that the new prices are still higher than the previous cap. It wouldn't have shown up on a bill in early October because that would cover energy use in September, but this month we'll see the effect of the higher prices.
Does that make sense - not sure if I've explained that very well! The exact effect of the price rise / cap also depends on your tariff and payment method, just to complicate things a bit more..
Well said. here's my take.
Up until the price rises, lets say my energy costs were 100 a month. So, my DD would be 100 a month, right?
01 October, I'm billed for my usual £100 for my September bill. Old prices, but payable in arrears. Energy subsidy doesn't come into play, price rises don't come into play. With me so far?
Ok, so OFGEM turn round and say 'energy cap going up'. Woah there, from October 1st my prices are going to almost double...I'll be paying best part of 200 a month...price rises plus using more energy.
BUT the government come along and give us all £400, split over six months. So, without that I'd be paying around £200 a month. My DD would have had to double.
So, the grant comes in £66 credited to my account in October, but this is to help towards my October bill. That bill was going to be £200 without any intervention but the EPG has now brought that bill down to nearer £175. Cool. Without the grant, my DD would need to be £175.
When my bill is calculated in November for my October consumption (bills are in arrears, remember) it comes in at £175
My account has the grant credit of £66 which is knocked off the bill, leaving £109 to pay. Which is more than my original DD of £100 so the DD still needs to go up a bit.
I think there is a little confusion with two separate issues here. The EPG which sets the maximum unit prices, will still see your bills and payments rise
The £400 grant is a completely separate thing.
You'll be paying more a month. End of. But not as much as you could have been, thanks to the EPG.
For 6 months, you get a little help....£400 over a six month period. But unless you are a very low energy user, that help probably won't cover the entire price rise, and it was never intended to. It's help, but does not completely negate the rises. And in April you lose the EPG and the payments. If you are a low user and racking up a positive balance on your account, then probably as well because unless something else comes along, the April price hikes will be humungous and you might be very glad of some buffer.