Stompa wrote:eventide wrote:Ofgem cap assumes 12,000 kWh gas and £2,900 kWh electricity for a standard user
The standing charge is around another £200
You say 'another' £200, but surely the standing charge is included in the price cap? So, for an average user, it's a cap on the total bill (unit costs + standing charges).
Yes the single cap figure includes the standing charge. But if you want to work out YOUR estimated bill based on the cap, you would need the separate breakdowns of gas unit price, electricity unit price, and standing charge and apply them to your own usage numbers in the quarter. These unit prices are on the following graph. They are "illustrative" as it varies by region etc, but it makes for a reasonable estimate.
For example, if you actually use 4,000 kWh of electricity and 25,000 kWh of gas, and if no one intervenes, your annual bill for 2023 will be:
Q1 (assume 40% of total volume): (80p x 4000 + 20p x 25000) x 40% + 200/4 = £3,330
Q2 (assume 20% of total volume): (118p x 4000 + 30p x 25000) x 20% + 200/4 = £2,494
Q3 (assume 10% of total volume): (120p x 4000 + 30p x 25000) x 10% + 200/4 = £1,280
Q4 (assume 30% of total volume): (106p x 4000 + 27p x 25000) x 30% + 200/4 = £3,347
For a total bill of £10,451....if no one intervenes
Gas futures prices have rallied again today, so the cap levels estimates are up again. The Oct-Dec 22 estimate on the graph is £3,576, and Ofgem will release the actual figure tomorrow.
The figures above the red line are the cost to government of notionall freezing the cap at £2,000. This is why media are bandying around an annual subsidy cost of over £100bn, ie miles more than covid furlough.