Anyone Here

[weecalf]

Want to
Help Liz out here .For us elderly and me thick .Please exactly what and how does the cap on energy prices work .I’d rather get no hand out from anyone we were brought up to work with what we have .Is capping prices admitting that greed has taken over from being decent in their dealings with people .

[davebro]

Er - it's a cap on the cost per unit of gas & electricity. The government will make up the difference to the energy companies. Supposed to help folks who might go cold and/or hungry this winter.

[weecalf]

So goverment is saying put up prices to what you want We will give you the taxpayers money if you go beyond what people can afford .For a wee while so fill your boots .

[barry1010]

No, the energy companies are charging us less than it costs them. That's why so many went bust. Without the cap we'd be paying a lot more

[ZebuSanctuary]

Firstly; the term 'price cap' is somewhat of a misnomer. You could be forgiven for thinking no household will pay more than £2,500 p.a for their gas and electricity. Frankly this is not true. It is subject to certain factors (see below) and based upon your household energy consumption back in the year 2019.

1. You must be paying by direct debit.
2. On a standard variable tariff.

If you satisfy the above two conditions then you'll be on the Ofgem 'price cap' tariff. This means (at current prices) energy units will be limited to 34p per kilowatt hour for electricity and 10.3p per kilowatt hour for gas.

[bobbinwales]

Yes the goverment regulator as been setting the price caps for typical user based-on the wholesale prices (which have gone up all over world largely due to Russia invasion of Ukraine and also abit because price's are set in US dollars which has been riseing against pound and Euro) and also based a profits cap of 1-2%.
I think theyll still set that price cap but have allso set a public price cap which is the max they can charge for standing charge and gas/electric kwh's. The goverment will pay the diffrence to the energy cos.

[bobbinwales]

I'm not sure why some think that there is an actual max of £2500 a year whatever you use....that would just be madness as it would just caus esome to leave on every light, heating on all day.. I think the regulater thought it was helpful to quote typical annual bills rather than unit rates but perhaps its time to call it a tarif cap or something like that

[ZebuSanctuary]

// I'm not sure why some think that there is an actual max of £2500 a year whatever you use //

I don't believe she deliberately set out to mislead the public. Amongst all the rhetoric, the PM had stated on more than one occasion... 'households will not pay more than £2,500 p.a for their energy consumption'. So far she has yet to clarify these remarks.

[ZebuSanctuary]

're: Sun 22.26... A Good Post!

[gulliver1]

Weecalf @ 19.19 You've just about got it right, in fact you are spot on.

[barry1010]

gulliver, the price cap is preventing suppliers charging what they want