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energy bills and 'typical' household

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James
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energy bills and 'typical' household

#524801

Postby James » August 23rd, 2022, 10:19 pm

Amid all the chatter of £5k bills next year, does anyone know what this is based on? They keep saying 'for the average home', but it is unclear what this is.
I know it's difficult to compare apples with oranges, but when the forecasts are made, are they talking about a small 2-bed flat or a family of five in a 4-bed detached?

servodude
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Re: energy bills and 'typical' household

#524805

Postby servodude » August 23rd, 2022, 10:36 pm

James wrote:Amid all the chatter of £5k bills next year, does anyone know what this is based on? They keep saying 'for the average home', but it is unclear what this is.
I know it's difficult to compare apples with oranges, but when the forecasts are made, are they talking about a small 2-bed flat or a family of five in a 4-bed detached?


Generally in this context they're only concerned with the "average" of the data set they have. It doesn't really have a correlation with a real world equivalent. i.e. an efficiently run large home will be equivalent to a one bed flat with an overspecced array of halogen downlighters, electric radiators for heating and 40 year old fridge freezer that never stops running.
If they both consume 3.7MWhr per year they will both be "average homes" for the purposes of working out how much their electricity usage costs will increase

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Re: energy bills and 'typical' household

#524808

Postby Stompa » August 23rd, 2022, 10:47 pm

I believe it's based on TDCVs. Currently Typical Domestic Consumption Values (TDCV) are 3,100 kWh per year for electricity (single register), 4,200 kWh per year for electricity (multi-register) and 12,000 kWh per year for gas.

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Re: energy bills and 'typical' household

#524809

Postby Dod101 » August 23rd, 2022, 10:53 pm

Indeed and I get very annoyed with the news reports as if the regulator was specifying £4,232 (say) as the maximum payable (or even the minimum) when what he is actually doing is setting a maximum charge per KWH for electricity and a similar charge per unit for gas. How that actually works out per consumer depends entirely on how much they use and that of course on a whole host of individual factors.

However, the media has immediately translated that into an annual charge based on some mythical 'average' usage. If they said 'That figure is based on current usage, but many of us can surely reduce that and still remain reasonably comfortable', and then advise us how that would be a lot more helpful.

Dod

PS maybe Stompa helps the discussion.

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Re: energy bills and 'typical' household

#524810

Postby James » August 23rd, 2022, 10:58 pm

Stompa wrote:I believe it's based on TDCVs. Currently Typical Domestic Consumption Values (TDCV) are 3,100 kWh per year for electricity (single register), 4,200 kWh per year for electricity (multi-register) and 12,000 kWh per year for gas.


Ah, that's the kind of info I was after. Thank you.
I can now work out whether I am a typical household looking forward to £5k bills or a child of a lesser property.
But can you explain single- and multi-registers to a bear of very little brain?

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Re: energy bills and 'typical' household

#524811

Postby staffordian » August 23rd, 2022, 11:02 pm

James wrote:
Stompa wrote:I believe it's based on TDCVs. Currently Typical Domestic Consumption Values (TDCV) are 3,100 kWh per year for electricity (single register), 4,200 kWh per year for electricity (multi-register) and 12,000 kWh per year for gas.


Ah, that's the kind of info I was after. Thank you.
I can now work out whether I am a typical household looking forward to £5k bills or a child of a lesser property.
But can you explain single- and multi-registers to a bear of very little brain?

Multi register is essentially Economy 7, ie the meter has two readings, or registers. It is assumed those on E7 will use more electricity (typically, storage heaters on the cheaper night rate) hence the higher kWh figure for those compared to single register users.

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Re: energy bills and 'typical' household

#524813

Postby Dod101 » August 23rd, 2022, 11:07 pm

James wrote:
Stompa wrote:I believe it's based on TDCVs. Currently Typical Domestic Consumption Values (TDCV) are 3,100 kWh per year for electricity (single register), 4,200 kWh per year for electricity (multi-register) and 12,000 kWh per year for gas.


Ah, that's the kind of info I was after. Thank you.
I can now work out whether I am a typical household looking forward to £5k bills or a child of a lesser property.
But can you explain single- and multi-registers to a bear of very little brain?


Well I can say that I, in respect of electricity, fall into the fairly typical category. My usage is a little under 4,000 KWh for electricity. I am not on the gas grid so am cast to the wilderness for the heavy price of my fuel oil. That is, if I am multi register (whatever that means)

Dod

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Re: energy bills and 'typical' household

#524836

Postby AF62 » August 24th, 2022, 7:27 am

Stompa wrote:I believe it's based on TDCVs. Currently Typical Domestic Consumption Values (TDCV) are 3,100 kWh per year for electricity (single register), 4,200 kWh per year for electricity (multi-register) and 12,000 kWh per year for gas.


I thought the electricity was slightly lower at 2,900kWh not 3,100kWh as that’s what Ofgem says here - “the current Typical Domestic Consumption Values (TDCV) of 2,900kWh of electricity, 12,000kWh of gas, and 4,200kWh of electricity for Economy 7” at https://www.ofgem.gov.uk/publications/p ... s693-april

And that is repeated here in this recent House of Commons brief on home energy prices (which in itself is an interesting read) https://researchbriefings.files.parliam ... P-9491.pdf -

“Ofgem uses lower annual consumption levels for is definition of ‘typical’: 2,900 kWh for electricity and 12,000 kWh for gas. These figures were last revised in 2019 and are based on median consumption values. They use this because it is more representative of what is typical. A mean average figure would be increased by the small numbers of consumers who use very large amounts of energy. The median is the value that half of consumers use less than and half of customers use more than.”

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Re: energy bills and 'typical' household

#524840

Postby servodude » August 24th, 2022, 7:37 am

AF62 wrote:
Stompa wrote:I believe it's based on TDCVs. Currently Typical Domestic Consumption Values (TDCV) are 3,100 kWh per year for electricity (single register), 4,200 kWh per year for electricity (multi-register) and 12,000 kWh per year for gas.


I thought the electricity was slightly lower at 2,900kWh not 3,100kWh as that’s what Ofgem says here - “the current Typical Domestic Consumption Values (TDCV) of 2,900kWh of electricity, 12,000kWh of gas, and 4,200kWh of electricity for Economy 7” at https://www.ofgem.gov.uk/publications/p ... s693-april

And that is repeated here in this recent House of Commons brief on home energy prices (which in itself is an interesting read) https://researchbriefings.files.parliam ... P-9491.pdf -

“Ofgem uses lower annual consumption levels for is definition of ‘typical’: 2,900 kWh for electricity and 12,000 kWh for gas. These figures were last revised in 2019 and are based on median consumption values. They use this because it is more representative of what is typical. A mean average figure would be increased by the small numbers of consumers who use very large amounts of energy. The median is the value that half of consumers use less than and half of customers use more than.”


I found this an interesting read earlier when thinking about this: https://www.ovoenergy.com/guides/energy-guides/how-much-electricity-does-a-home-use

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Re: energy bills and 'typical' household

#524855

Postby didds » August 24th, 2022, 8:46 am

Dod101 wrote:Indeed and I get very annoyed with the news reports as if the regulator was specifying £4,232 (say) as the maximum payable (or even the minimum) when what he is actually doing is setting a maximum charge per KWH for electricity and a similar charge per unit for gas. How that actually works out per consumer depends entirely on how much they use and that of course on a whole host of individual factors.


Absolutely Dod. This "energy price cap at £X" is a meaningless statement/figure.

didds

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Re: energy bills and 'typical' household

#524859

Postby CliffEdge » August 24th, 2022, 8:58 am

Doesn't matter how energy efficient you are, they whack you with a horrendous standing charge.

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Re: energy bills and 'typical' household

#524861

Postby Stompa » August 24th, 2022, 9:02 am

AF62 wrote:
Stompa wrote:I believe it's based on TDCVs. Currently Typical Domestic Consumption Values (TDCV) are 3,100 kWh per year for electricity (single register), 4,200 kWh per year for electricity (multi-register) and 12,000 kWh per year for gas.


I thought the electricity was slightly lower at 2,900kWh not 3,100kWh as that’s what Ofgem says here - “the current Typical Domestic Consumption Values (TDCV) of 2,900kWh of electricity, 12,000kWh of gas, and 4,200kWh of electricity for Economy 7” at https://www.ofgem.gov.uk/publications/p ... s693-april

And that is repeated here in this recent House of Commons brief on home energy prices (which in itself is an interesting read) https://researchbriefings.files.parliam ... P-9491.pdf -

“Ofgem uses lower annual consumption levels for is definition of ‘typical’: 2,900 kWh for electricity and 12,000 kWh for gas. These figures were last revised in 2019 and are based on median consumption values. They use this because it is more representative of what is typical. A mean average figure would be increased by the small numbers of consumers who use very large amounts of energy. The median is the value that half of consumers use less than and half of customers use more than.”

I think you're correct, though I copy & pasted those values from a recent (this year I think) ofgem document.

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Re: energy bills and 'typical' household

#524862

Postby staffordian » August 24th, 2022, 9:12 am

Snorvey wrote:
I'm kind of confused. I've just checked my bill for the last 12 months and it says:

Day = 1904 kWh
Low = 5001 kWh

Which is quite far above the 'multi register' estimate of 4200 kWh. I don't see us as heavy users (there are only 2 of us in the house). Based on that, my current monthly DD would be about £59pm or 36% less than my current amount.



I'm guessing your main heating provision is electricity, via E7?

In which case I'd expect your usage to be a good bit above the average, compensated by lower gas (or maybe you have no gas?) usage.

I reckon a fair number of E7 users don't use electricity as the main heat source and are on E7 as that's what the meters happened to be, or perhaps they charge EVs or do washing etc overnight. This would skew the average downwards.

Edit: FWIW there are two of us in a bungalow (in the West Midlands), average insulation, in most of every day, with a gas combi boiler. Our annual use is 2000kWh electricity and 10000kWh gas

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Re: energy bills and 'typical' household

#524878

Postby xeny » August 24th, 2022, 10:09 am

Dod101 wrote: I am not on the gas grid so am cast to the wilderness for the heavy price of my fuel oil.


Last time I looked, oil was going to be considerably cheaper /KWh than has post the October price cap, and possibly before. There's talk of industrial consumption migrating to oil for surety of supply, so I'd suggest keeping a very close eye on tank levels, current market price and even stock availability.

https://www.bloomberg.com/opinion/artic ... f=5dj0X2VO discusses likely stock issues

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Re: energy bills and 'typical' household

#524880

Postby scotview » August 24th, 2022, 10:19 am

It might be useful also if they set out:

Average Gas Tariff kWh
Average Gas daily standing charge
Average Electricity Tariff kWh
Average Electricity standing charge.

You could then easily work out your own usage.

Sadly, Ofgem don't operate like that, that's just too transparent.

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Re: energy bills and 'typical' household

#524892

Postby Dod101 » August 24th, 2022, 11:03 am

xeny wrote:
Dod101 wrote: I am not on the gas grid so am cast to the wilderness for the heavy price of my fuel oil.


Last time I looked, oil was going to be considerably cheaper /KWh than has post the October price cap, and possibly before. There's talk of industrial consumption migrating to oil for surety of supply, so I'd suggest keeping a very close eye on tank levels, current market price and even stock availability.

https://www.bloomberg.com/opinion/artic ... f=5dj0X2VO discusses likely stock issues


That is interesting. I had not seen that. I have often wondered about cost per KWh between gas and oil. Anyway, I have a more or less full tank at the moment which should keep me going until about February, if no one pinches it in the meantime! It is like leaving £2,000 in my back garden because the standard tank has no security and any one could siphon off the oil if they have a big enough container.

Dod

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Re: energy bills and 'typical' household

#524893

Postby 88V8 » August 24th, 2022, 11:04 am

Stompa wrote:Currently Typical Domestic Consumption Values (TDCV) ...4,200 kWh per year for electricity (multi-register) ...

I only started keeping Excel records in 018, but since then on E7 in our all-electric cottage we've used 11,000, 12,800, 15,700 and 13,700kw.
So I suppose we might be paying a bit more than average after our fixed-rate expires.
I'll suggest the wife grows a few more cucumbers to offset the cost.

V8

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Re: energy bills and 'typical' household

#524896

Postby eventide » August 24th, 2022, 11:33 am

Image


Graph of upcoming ofgem caps (if nothing changes, which is debatable) and likely electricity and gas unit prices. I tried to inline this image but I guess the board disallows this.

Standing charge adds around £200 more to your own consumption volumes * unit prices

https://pbs.twimg.com/media/Fa6xk5SX0AAKLLu?format=jpg&name=900x900
Last edited by eventide on August 24th, 2022, 11:36 am, edited 2 times in total.

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Re: energy bills and 'typical' household

#524897

Postby staffordian » August 24th, 2022, 11:35 am

scotview wrote:It might be useful also if they set out:

Average Gas Tariff kWh
Average Gas daily standing charge
Average Electricity Tariff kWh
Average Electricity standing charge.

You could then easily work out your own usage.

Sadly, Ofgem don't operate like that, that's just too transparent.


I think the problem is that despite OFGEM stipulating the cap, there is still some leeway for suppliers to tweak their rates whilst still complying with the cap. I understand they have some scope to increase the standing charge and reduce the kWh rate or vice versa, so OFGEM cannot stipulate precise rates.

Additionally, just to add to the confusion, there are regional differences rather than a single national figure, apparently to reflect the differing distribution costs in different parts of the country, so OFGEM do quote several capped rates...

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Re: energy bills and 'typical' household

#524900

Postby AF62 » August 24th, 2022, 11:45 am

scotview wrote:It might be useful also if they set out:

Average Gas Tariff kWh
Average Gas daily standing charge
Average Electricity Tariff kWh
Average Electricity standing charge.

You could then easily work out your own usage.

Sadly, Ofgem don't operate like that, that's just too transparent.


Umm, they do publish that information - https://www.ofgem.gov.uk/check-if-energ ... ffects-you

And there is more detailed information on page 32 of this document - https://researchbriefings.files.parliam ... P-9491.pdf

What they don’t do is try to guess what the rates will be in October when the new price cap takes effect because anything now would be no more than a guess.
Last edited by AF62 on August 24th, 2022, 11:47 am, edited 1 time in total.


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