OFGEM today announced the new price caps for the period Jan- Mar 2023.
Because the Government's Energy Price Guarantee (EPG) remains in place for that period, the changes in the Price Cap figures will have little if any effect on our bills. Standing charges, perhaps because of the EPG, will not change this time. However, the notional price capped unit prices will increase, and in order to maintain the value of the £2,500 EPG figure, the amount of the Government contribution will have to increase to keep the unit prices to us customers at their current level.
Without the EPG, the average customer, using the average amount of electricity and gas, in an average area paying by Direct Debit would have seen their annual bill rise to £4,279, but because of the EPG it will remain at £2,500. In effect the Government contribution is 41% of the bill without their intervention.
Those on credit meters who do not pay by Direct Debit, pay an additional £254 per annum for those tariffs. Prepayment customers pay an addition £80 above the Direct Debit figures. In both these cases the average customer caveats apply.
Customers should note that the EPG limits unit prices, not total bills. If you use more you pay more, if you use less, you pay less.
But if you can save energy, as well as saving you money directly, you also save the Government money too, and remember the government's money is really our money paid in taxes.
Because the Government's Energy Price Guarantee (EPG) remains in place for that period, the changes in the Price Cap figures will have little if any effect on our bills. Standing charges, perhaps because of the EPG, will not change this time. However, the notional price capped unit prices will increase, and in order to maintain the value of the £2,500 EPG figure, the amount of the Government contribution will have to increase to keep the unit prices to us customers at their current level.
Without the EPG, the average customer, using the average amount of electricity and gas, in an average area paying by Direct Debit would have seen their annual bill rise to £4,279, but because of the EPG it will remain at £2,500. In effect the Government contribution is 41% of the bill without their intervention.
Those on credit meters who do not pay by Direct Debit, pay an additional £254 per annum for those tariffs. Prepayment customers pay an addition £80 above the Direct Debit figures. In both these cases the average customer caveats apply.
Customers should note that the EPG limits unit prices, not total bills. If you use more you pay more, if you use less, you pay less.
But if you can save energy, as well as saving you money directly, you also save the Government money too, and remember the government's money is really our money paid in taxes.
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.
