Can somebody please explain to us here at Waverley Web how the energy price cap is much higher than in October 2021? Before the war in Ukraine, when wholesale prices were basically the same.
Image from Ofgem’s very own website of wholesale gas prices.
The new 5% higher price cap means people will pay more this Jan THAN ANY WINTER BEFORE.
New 3mthly Price Cap Figures: From 1 Jan you’ll pay 5% more on average (every £100 paid now goes to £105).
For direct debit on average across the UK: ELEC: Unit rate: 28.62p/kWh (currently 27.35p), so up 4.6%. The standing charge is unchanged at 53.37p
GAS: Unit rate: 7.42p/kWh (currently 6.89p), up 7.6%. The standing charge is unchanged at 29.6p7p. So there are bigger rises for gas households than electricity and proportionately bigger for higher users (due to the impact of unit rates).
Yet you’ll pay so much more because last winter, every home received a £66/month govt reduction. You don’t have that this winter. So while October ‘inflation dropped due to cheaper energy bills’ – that ignores the missing govt support, in reality, we’re paying more for energy…
For a home on typical use (meaningless figure but good for illustration)...
Jan 2023: £2,380/yr Jan 2024: £1,928/yr So per month (not seasonally adjusted)
Jan 2023: £198/mth Jan 2024: £160/mth Now factor in govt support Jan 2023: £198 – £66 = £132/mth Jan 2024: £160/mth
In other words, a typical home pays £28/month more this winter, or factor in seasonal adjustments due to high winter use and as a back-of-envelope calculation, it is more like £ 45 per month more.
There’s more than a sniff of market collusion with the large energy companies. The Wholesale Gas prices is just a scam. And the Electricity prices are linked to the Wholesale Gas price – why?
The whole thing sucks and we are the poor peasants that get robbed blind by big business, with Offcom as much use as a spare thingamy at a wedding (just a pathetic PR scam of trying to help us)
Welcome to the world of Net Zero which you Liberals so fervently support.