Re point 1, you can come off the tracker on request, so if you're not happy you can exit immediately.
Re point 2, I've been wondering exactly the same. I've no idea why and how I'm paying 30% less than the cap on average. (I joined in February as well).
If you leave the tracker you cannot rejoin for 9 months. Again, I love it, but timing of joining may not be best at beginning of winter.
Charging us to maintain the network, some profit and other random hidden costs. Surely this is what the daily standing charge is for at 30p a day x number of houses in the UK (~8mil per day in standing charges with 26.4 dwellings in the UK).
Absolutely, but if I elected to leave the tracker I doubt I'd want to be rejoining it anytime soon.
I feel the point of my original post is lost. Wholesale prices are likely to exceed the price cap in dec (and maybe Jan, the coldest months). If you join and then leave in the next 2 months as costs escalate, you lose the ability to join again in the summer, when typically wholesale prices plummet (due to lower usage). I believe it is all a question of timing.
We're all going to have to pay more because so many are unable to pay their bills, yet the companies have all been making big profits. So even more people will be unable to pay their bills if prices are lifted again. Ofgem looking after the interests of the big energy providers over those of the consumer.
The UK's biggest supplier, British Gas, reported record profits of £969m for the first six months of 2023, up almost 900% from £98m in the same period of 2022.
Meanwhile, French state-owned EDF reported its UK business made profits of almost £2bn for the first half of last year - including the earnings from its nuclear power plants - up from £738m in the same months of 2022.
Scottish Power reported a £576m profit for the first half of the year and E.On made £723m. SSE reported pre-tax profits of £565.2m for the first half of the year.
Simon Francis, coordinator of the group End Fuel Poverty Coalition, argued it was unfair for the regulator to make the majority pay for a failed system.
"This outrageous tax on energy consumers is simply not fair," he said.
"Energy suppliers have posted billions in profits already this year while millions of people struggle in cold damp homes.
"The record levels of energy debt are due to Britain's broken energy system, not the fault of the hard-pressed public.
If anyone wants to switch to Octopus and their tracker I offered a link a while back. My electricity and gas is still significantly below the government capped price. Both parties get £50 off their bill.
If anyone wants to switch to Octopus and their tracker I offered a link a while back. My electricity and gas is still significantly below the government capped price. Both parties get £50 off their bill.
Forgive my ignorance but what is the problem with having a smart meter? I have no opinion, I genuinely don’t know. (I have a smart electricity meter and a normal gas one).
Forgive my ignorance but what is the problem with having a smart meter? I have no opinion, I genuinely don’t know. (I have a smart electricity meter and a normal gas one).
People have claimed various reasons - Data privacy concerns - Greater remote control by energy companies (such as switching you to prepay) - Don't like being forced to do something they don't like
As per previously posted, I am on a tracker deal with Octopus that requires a smart meter in order to attribute daily fluctuations in the wholesale price. I am fine with a smart meter (as I can monitor my usage) and the deal has saved me £100s since Feb this year (I am paying 4.07p for gas (cap is 9.5) and 14.34 for electricity (cap is 28.5) today alone).
Note: for those considering the Octopus tracker, word of warning. Octopus have already changed the deal for new subscribers earlier in December and how charge wholesale price is calculated. It is roughly the wholesale price + 2.2p on Elec, and 0.23p on Gas. Their reasoning is that 'upcoming legislation' which basically means, we offered the deal too low and we need to start making more money. Current subscribers to the tracker deal pre-11th December are unaffected.
I still think that it is a good deal, but not without it's risks (higher daily prices if unforeseen events occur)
Annual energy bills for a typical household are expected to fall by £268 in April, a new forecast suggests.
Consultancy firm Cornwall Insight says bills could drop to £1,660 under the official price cap set by the UK's energy regulator Ofgem.
Energy regulator Ofgem said the typical dual-fuel annual household bill would go up from £1,834 to £1,928 in January, a rise of £94.
In its latest forecast, Cornwall said it expected bills to continue to fall throughout the year, falling to £1,590 in July before a slight increase to £1,640 from October.
I am very pleased that we decided to have a smart meter fitted, especially since we came off a 2 year fixed deal last June.
The house we rent has a very old gas boiler and it costs a lot to run. Instead of having the central heating on all evening, as we used to, we now put it on for an hour early in the evening. If we need a bit more heat, we may run it for an extra hour, or just use an electric fan heater in the lounge. The smart meter shows that the fan heater is relatively cheap to run.
We have a second generation smart meter and wouldn't want to be without it now.
Will be interesting if new fixed rates are released. The way wholesale prices have stabilised (and reducing) I won’t be biting for a while yet.
Even with the increases I outlined in December to the Octopus tracker, the average daily rate for the last 6 months has been 19.68p for electricity, 4.54p for gas. The wholesale price has been very stable over the winter (probably as it had been quite mild).
In comparison, the proposed April-June price cap rates announced today are 24.5p for electricity and 6.04p for gas.
I remain confused why the price cap remains 20% higher than the average wholesale rate over 6 months other than ofgem are a complete sham and only exist to line the pockets of energy companies.
Will be interesting if new fixed rates are released. The way wholesale prices have stabilised (and reducing) I won’t be biting for a while yet.
Even with the increases I outlined in December to the Octopus tracker, the average daily rate for the last 6 months has been 19.68p for electricity, 4.54p for gas. The wholesale price has been very stable over the winter (probably as it had been quite mild).
In comparison, the proposed April-June price cap rates announced today are 24.5p for electricity and 6.04p for gas.
I remain confused why the price cap remains 20% higher than the average wholesale rate over 6 months other than ofgem are a complete sham and only exist to line the pockets of energy companies.
I remain confused why the price cap remains 20% higher than the average wholesale rate over 6 months other than ofgem are a complete sham and only exist to line the pockets of energy companies.
Sadly, I don't think you are confused as you've hit the nail firmly on the head.
The fact companies are still making money yet customers apparently are in debt to the tune of 3.1bn says it all. Not sure why the standing charge is increasing..........
The price cap a year+ ago was specifically set to allow providers such as BG to claw back the losses from the prior year after taking over failed companies business. Hence why at east in part BG's profits were so high. Still a joke though.
Standing charges have gone up, Ofgem does not work for the consumer.
It has for pre pay customers in this regard.
It is, but everyone else is paying more as a result. There should never have been higher charges for those on pre-payment meters in the first place, as they are usually the people who struggle to pay their bills the most. The consumer is being ripped off by these private companies who exist to make a profit. Selling off our utilities has been a disaster for the consumer.
Usage is the key driver in anyone's bills. My house in England is 3 bed detached. I don't have the heating on more than 5 hours a day in winter. Annual bills are around £90pcm (capped September 2021 - 3 yrs). My house in Sweden has a ground source heat pump system (24 hrs) and is of course fully electric as are all properties in Sweden (pretty much). There the average monthly spend is £500. Bigger house but snow and ice on the ground from November to April, so -20'C is not unusual. Inside my wife likes it at a comfortable 23-25c whereas in England my house is 18-19c.
The way I see it, Brits don't heat their properties properly, whereas other Europeans prioritise. I speak to work colleagues in England who set their thermostats at 14, 12, even 11c, which I think is just self neglect.
I have to admit, I'm pretty miserable sitting in anything under 18c.
Standing charges have gone up, Ofgem does not work for the consumer.
It has for pre pay customers in this regard.
It is, but everyone else is paying more as a result. There should never have been higher charges for those on pre-payment meters in the first place, as they are usually the people who struggle to pay their bills the most. The consumer is being ripped off by these private companies who exist to make a profit. Selling off our utilities has been a disaster for the consumer.
Sadly we cant actually know that albeit I understand the sentiment.
The reason utilities were privatised originally dates back to the poor state of public services prior to then & the negative impacts of zero competition.
As ever a happy medium is what we all want and these things will likely go in cycles. Interestingly no changes are on the horizon to nationalise any more but hopefully some further regulatory changes will start to correct some of the poorest impacts we have evolved to.
Will be interesting if new fixed rates are released. The way wholesale prices have stabilised (and reducing) I won’t be biting for a while yet.
Even with the increases I outlined in December to the Octopus tracker, the average daily rate for the last 6 months has been 19.68p for electricity, 4.54p for gas. The wholesale price has been very stable over the winter (probably as it had been quite mild).
In comparison, the proposed April-June price cap rates announced today are 24.5p for electricity and 6.04p for gas.
I remain confused why the price cap remains 20% higher than the average wholesale rate over 6 months other than ofgem are a complete sham and only exist to line the pockets of energy companies.
It's because the wholesale prices are just for the gas and power itself. On top of that end customers also have to pay for maintenance and operation of the network that transports all the gas and power.
Then on top of that there are subsidies for renewable generators which also get paid for by the end customer.
Pre energy crisis wholesale costs only made up 1/3 of the total bill, transmission costs another 1/3 and subsidies were the last 1/3. As wholesale costs are higher now they make up a bigger percentage but there's still a lot extra being paid for.
I don't work for Ofgem btw but do work in the industry
Typical wait until it warms up a bit and then drop the prices....bet they go back up next winter.
Nothing to stop you from using loads of energy during the summer. Crank your thermostat up to 35 degrees to take advantage of the lovely price reduction...
Had details through from Octopus about pricing from April.
Gas unit charge is going from 7.421p to 6.111p standing charge from 27.468p to 29.978p Elec unit charge is going from 29.728p to 25.721p standing charge from 36.53p to 38.742p
Octopus don't pass on the full increase on the standing charge which is nice, apparently I'll save £575!
Comments
Energy price cap hike to help suppliers recover record level of unpaid bills
https://news.sky.com/story/energy-price-cap-may-rise-to-help-suppliers-recover-record-level-of-unpaid-bills-13030748
We're all going to have to pay more because so many are unable to pay their bills, yet the companies have all been making big profits. So even more people will be unable to pay their bills if prices are lifted again. Ofgem looking after the interests of the big energy providers over those of the consumer.
The UK's biggest supplier, British Gas, reported record profits of £969m for the first six months of 2023, up almost 900% from £98m in the same period of 2022.
Meanwhile, French state-owned EDF reported its UK business made profits of almost £2bn for the first half of last year - including the earnings from its nuclear power plants - up from £738m in the same months of 2022.
Scottish Power reported a £576m profit for the first half of the year and E.On made £723m. SSE reported pre-tax profits of £565.2m for the first half of the year.
Simon Francis, coordinator of the group End Fuel Poverty Coalition, argued it was unfair for the regulator to make the majority pay for a failed system.
"This outrageous tax on energy consumers is simply not fair," he said.
"Energy suppliers have posted billions in profits already this year while millions of people struggle in cold damp homes.
"The record levels of energy debt are due to Britain's broken energy system, not the fault of the hard-pressed public.
My electricity and gas is still significantly below the government capped price.
Both parties get £50 off their bill.
Your electricity meter has reached the end of its life. When this happens there’s a legal obligation to check and exchange your meter with a new one.
Click here to book your appointment today to change your meter to a smart meter:
So, my learned friends on CL, what exactly is this "legal obligation" they've put in bold letters?
Ignore.
- Data privacy concerns
- Greater remote control by energy companies (such as switching you to prepay)
- Don't like being forced to do something they don't like
As per previously posted, I am on a tracker deal with Octopus that requires a smart meter in order to attribute daily fluctuations in the wholesale price. I am fine with a smart meter (as I can monitor my usage) and the deal has saved me £100s since Feb this year (I am paying 4.07p for gas (cap is 9.5) and 14.34 for electricity (cap is 28.5) today alone).
Note: for those considering the Octopus tracker, word of warning. Octopus have already changed the deal for new subscribers earlier in December and how charge wholesale price is calculated. It is roughly the wholesale price + 2.2p on Elec, and 0.23p on Gas. Their reasoning is that 'upcoming legislation' which basically means, we offered the deal too low and we need to start making more money. Current subscribers to the tracker deal pre-11th December are unaffected.
I still think that it is a good deal, but not without it's risks (higher daily prices if unforeseen events occur)
Annual energy bills for a typical household are expected to fall by £268 in April, a new forecast suggests.
Consultancy firm Cornwall Insight says bills could drop to £1,660 under the official price cap set by the UK's energy regulator Ofgem.
Energy regulator Ofgem said the typical dual-fuel annual household bill would go up from £1,834 to £1,928 in January, a rise of £94.
In its latest forecast, Cornwall said it expected bills to continue to fall throughout the year, falling to £1,590 in July before a slight increase to £1,640 from October.
https://www.bbc.co.uk/news/business-67772757
The house we rent has a very old gas boiler and it costs a lot to run. Instead of having the central heating on all evening, as we used to, we now put it on for an hour early in the evening. If we need a bit more heat, we may run it for an extra hour, or just use an electric fan heater in the lounge. The smart meter shows that the fan heater is relatively cheap to run.
We have a second generation smart meter and wouldn't want to be without it now.
Domestic energy prices will fall by 16% in April, according to a prediction by consultancy Cornwall Insight, bringing some relief to billpayers.
It said the annual household bill when using a typical amount of gas and electricity was expected to drop from £1,928 to £1,620.
https://www.bbc.co.uk/news/business-68055884
https://www.bbc.co.uk/news/business-68353627
The price cap a year+ ago was specifically set to allow providers such as BG to claw back the losses from the prior year after taking over failed companies business. Hence why at east in part BG's profits were so high. Still a joke though.
My house in Sweden has a ground source heat pump system (24 hrs) and is of course fully electric as are all properties in Sweden (pretty much). There the average monthly spend is £500. Bigger house but snow and ice on the ground from November to April, so -20'C is not unusual. Inside my wife likes it at a comfortable 23-25c whereas in England my house is 18-19c.
The way I see it, Brits don't heat their properties properly, whereas other Europeans prioritise. I speak to work colleagues in England who set their thermostats at 14, 12, even 11c, which I think is just self neglect.
I have to admit, I'm pretty miserable sitting in anything under 18c.
Then on top of that there are subsidies for renewable generators which also get paid for by the end customer.
Pre energy crisis wholesale costs only made up 1/3 of the total bill, transmission costs another 1/3 and subsidies were the last 1/3. As wholesale costs are higher now they make up a bigger percentage but there's still a lot extra being paid for.
I don't work for Ofgem btw but do work in the industry
Gas unit charge is going from 7.421p to 6.111p standing charge from 27.468p to 29.978p
Elec unit charge is going from 29.728p to 25.721p standing charge from 36.53p to 38.742p
Octopus don't pass on the full increase on the standing charge which is nice, apparently I'll save £575!