Re: New Year energy prices
Posted: December 30th, 2022, 3:29 pm
xeny wrote:Isn't it already announced that the cap will rise such that the cap for the notional typical £2500 bill will become £3000?
Given that this year there was also £400 of support, that essentially means the typical annual bill will rise by ~43% from £2500-400 to £3000.
Just had this from Octopus:
Dear xxxxxxx,
The Government recently announced some changes to the Energy Price Guarantee: the scheme put in place from October to cap energy prices in the crisis (although your bill will still vary based on how much you use).
The first change was a surprise: due to the updated Ofgem Price Cap, some Energy Price Guarantee rates are changing in January.
This is because the Energy Price Guarantee is tied — imperfectly — to the Ofgem Price Cap (if you’re curious, read more at the bottom of this letter).
At a practical level, this means price changes – some up, some down – to Energy Price Guarantee electricity rates in many regions.
The majority of changes are reasonably small, and where we can, we’re absorbing any rises and passing on reductions.
While the Energy Price Cap is increasing unit rates in your area, we’re not passing this increase on, and your prices won’t change in January.
There’s a reminder of your current rates attached.
Looking further ahead, based on current plans, energy prices will rise a further 20% in April — taking a typical home annual bill from around £2,500 to £3,000 — as the Government scales back the amount of support available.
With the £67 monthly credits from the Energy Bill Support Scheme also ending in March, we know April is going to be a difficult time for many.
So now we know.