Going Green

how does the energy price cap work

September 01, 2022 Philip Russell / Paul Russell Season 2 Episode 35
Going Green
how does the energy price cap work
Show Notes

Last Friday Ofgem (the UK energy regulator) Announced the increase the energy price cap of both Gas and Electricity  from 7p to 15p and  28p to 52p  respectfully on a Standard variable tariff and the Daily standing charges of both types of energy are increasing by 1p
This is the MAXIMUM an Energy company can charge on a Standard variable tariff. But the energy price cap for other tariff are being changed as well (So consult your bill from your energy company to see what tariff you are on!) 

This is for numerous reasons such as the Wholesale Gas and Energy costs, infrastructure and maintenances cost of the Gas and Electricity Network. 
Unfortunately the regulator cannot make the Energy company 'Not' earn a profit and such they can charge additional rates inside your bill making it look like it goes up!

A number that keeps running around is that your Energy bill will go up to £3,548.84 per year, However that figure is based on a 3 bedroom house that consumes  12,000 kWh of gas, and 2,900 kWh of electricity annually. Remember that this is an average not what your bill will go up to!