29/03/2022
Meter Reading Day Thursday 31st of March
The new capped rates for homeowners in the UK come into effect on the 1st of April, this will affect all homes who are not on fixed contracts, it will not affect business.
If you are one of the lucky homes who are still on a fixed rate you need not worry but all other homes will be affected. The press and Government all talk about a percentage increase, we prefer to talk in real terms with the actual figures.
The Current Capped Rates are:
Electric 20.08p kwh and 24.88p daily charge - Gas 4.07p kwh and 26.12p daily charge
The New Capped Rates from the 1st of April 2022 are:
Electric 28.34p kwh and 45.34p daily charge - Gas 7.37p kwh and 27 .22p daily charge
If you want to know how much extra you will be paying, please follow these instructions, using the annual usage figures of Gas 15000 kwh a year and Electric 4000 kwh a year.
Figures for Current Capped Rates:
• 15000kwh of Gas x current rate of 4.07p = £610.50 plus 365 x 26.12p = £95.33
Total is £610 plus £95.33 = £705.83
• 4000kwh of Electric x current rate of 20.08p = £ 820.20 plus 365 x 24.88p = £90.81
Total is £820.20 plus £90.81 = £911.01
• Total annual cost for both gas and electric would be £1616.84
• If you then divide this by 12 monthly payments the household should be paying £134.73 a month to cover this cost.
Figures for New Capped Rates:
• 15000kwh of Gas x new rates of 7.37p = £1105.50 plus 365 x 27.27p = £99.53
Total is £1105.50 plus £99.53 - £1205.03
• 4000kwh of Electric x new rates of 28.34p = £1133.60 plus 365 x 45.34p = £165.49
Total is £1133.60 plus £165.49 = £1299.09
• Total annual cost for both gas and electric would be £2404.12
• If you then divide this by 12 monthly payments the household should be paying £208.67 a month to cover the cost.
This means when you move onto the new capped rates you will be paying £73.94 more a month.
The suppliers will try and set your direct debit higher, don’t let them, argue that you’ve worked it out and will only pay the amount you should. The other important thing to do is submit an up-to-date meter ready before 1st of April or take a picture for evidence. This can be submitted on your online account, or you can give them a call with your reading. The suppliers should not charge you the higher rates on usage before this date.
Hope you found this useful but if you would like any additional help please get in touch.
Chris Jones