Quite right. In the cost though there are also other amounts for things such as payments for renewables, grants for energy improvements etc. But these are not taxes.
I have inserted the link to OFGEM which gives a breakdown of the domestic energy bill.
https://www.ofgem.gov.uk/information-consumers/energy-advice-households/costs-your-energy-bill
Quite right. In the cost though there are also other amounts for things such as payments for renewables, grants for energy improvements etc. But these are not taxes.
I have inserted the link to OFGEM which gives a breakdown of the domestic energy bill.
https://www.ofgem.gov.uk/information-consumers/energy-advice-households/costs-your-energy-bill
However whichever way you look at it at least the taxes go to a British company for later distribution!
There is a spiders web of schemes which cost huge amounts of money, funded by stakeholders. I don't want to widen the discussion and cause thread drift, but simply point out that 25% of our energy bills is funding them, plus the 5% VAT.
People who cannot afford this have no choice but to pay it. Eventually, the cost to the energy companies of the Government Cap, will also be added to our cost, one way or another. The spending spree in the world of OFGEM (we pay for that monster too) has to be curtailed.
Why does a 50% increase in the world cost of energy (which its-self is only 25% of our bill) increase our bill by 50%, when my simple maths will say 50% x 25% = 12.5%. The answer is because OFGEM are regulating it and spending it.
People who cannot afford this have no choice but to pay it. Eventually, the cost to the energy companies of the Government Cap, will also be added to our cost, one way or another. The spending spree in the world of OFGEM (we pay for that monster too) has to be curtailed.
Why does a 50% increase in the world cost of energy (which its-self is only 25% of our bill) increase our bill by 50%, when my simple maths will say 50% x 25% = 12.5%. The answer is because OFGEM are regulating it and spending it.
Unfortunately while I cannot comment on your calculation the simple fact is the suppliers are selling energy to us at below cost and losing money on domestic sales. Yes it will be clawed back somehow in the future, but it is the commercial customers who are hit hardest as they are not protected by the price cap. To help the best short term plan would in my opinion be to drop the VAT and green element, although that would still hurt when we got the bill.
I don’t believe it’s that simple. The UK (and wider European) energy infrastructure is complex and multifaceted. Trying to establish a linear direct link between the price rise in gas and end energy bill is difficult because there are so many moving parts. As consumers who want instant access to as much or as little power as we choose, any time of day or night , we pay a premium for the redundancy in the grid, the flexibility in the peak generation, and the ability to match our every demand.
I can understand the cost of a kw increasing, but I cannot understand the huge leap of well over 50% in the daily standard charge?
Everything has been capped for several years, and now cost of maintence has risen, logistic costs have risen, so daily standing charges are bound to increase.
When we had a gas leak in our garden, the gas people came out within the hour, dug up the garden isolated the leak, could not carry on work until the air was clear, well over 24 hours, engineer in the van outside the house monitoring levels every 30 minutes, 3 shift changes, he had to have meals, his van was like a mix between a workshop and a motor home. This all has to be paid for.
We could do with a Woosie like that. Or we all become gas engineers and use our company vehicle for leisure 😜😜
Their vans all kitted out with Microwave, toilet and an area to monitor the air quality outside.
One of the engineers told me that we were, just a few % off of the limits of being evacuated, and both neighbours to hotels , at the cost of the gas supplier.
When you take £0.25p per day on approximately 40 million MPANs including businesses which pay a lot more than .25p a day, that adds up to about 10 million a day and times that by 365 days that is a hell of a lot of money!
Well I am going to do my bit to saving power, The pubs open, nice and warm, dog treats for Harry, I will turn my heating down to 13 c and go for a pint or two of Brains SA, (Skull Attack ), and a few lumps of cheese and a pickled onion.
When we lived in Cardiff that was my favourite pint. Initially it went down like water as I was used to a stronger lager with over 5% alcohol content by volume.
But there an awful lot of infrastructure involved in delivering energy as well as maintaining and upgrading for supplies, as well as the people involved. OFGEM did give an explaination of the reasons behind the increases in daily charge. In context £ 0..25 per day isn’t much is it?
When we lived in Cardiff on the banks of the Taff in Grangetown the Brains brewery was just up the river from us. Most weeknights for neigh on three years we entered the Grange on Penarth Road at 10 pm and left after three pints of Brains Dark.
Well after walking to the pub for myself and Mrs H, in her EV Chariot.
3 , pints of SA, to quench my thirst and two bottles of shared Pino Grigio, bar bill £48: 30. But I have saved maybe £3:50 on gas heating. 😃
I will have to rethink this all.
Time to get the van out to The Thames Head, Cirencester, and visit DD.🍻🍻🍻🍻
3 , pints of SA, to quench my thirst and two bottles of shared Pino Grigio, bar bill £48: 30. But I have saved maybe £3:50 on gas heating. 😃
I will have to rethink this all.
Time to get the van out to The Thames Head, Cirencester, and visit DD.🍻🍻🍻🍻
We’ve just done similar. Lunch out with friends, beers and wine, etc a three hour session but the pub was saving on fuel too as it wasn’t that warm; until the calories started to kick in. Two weeks now on the trot, methinks Mrs OC needs some lessons in economics.
Our daily charge for electric has increased from 22.87p to 48.15 = 110%. That aside from the 66.3% increase in the kWh. To put this into context, it's massive.
However with BGAS from 1st April it is going up to 48p so a massive hike. Has cost of living gone up by 70%? It must also be remembered that new customers still pay for new connections.
Suppliers who are not distribution companies make a profit on a kw unit, but I am not sure of whether they get a cut from standing charge however I doubt it or if they do it is a fraction of a penny.
Whilst our fuel prices haven’t shown much of a reduction there has been good availability of petrol and diesel. That is until today when some of the morning papers reported fuel shortages caused by the”activists” blocking fuel depots. My wife came back from grocery shopping this morning at Sainsburys and said there’s an enormous queue tailing back from the fuel station. Clearly panic buying is setting in.
Our daughter has just rang to say Morrisons have closed the fuel station and Tesco are limiting entry and purchases, with queues forming at a nearby independent.
Glad we filled both cars up at the weekend.
Our daughter has just rang to say Morrisons have closed the fuel station and Tesco are limiting entry and purchases, with queues forming at a nearby independent.
Glad we filled both cars up at the weekend.
I thought it was now a criminal offence to blockade a refinery which they have been doing for the past 2 weeks? Rumour has it they they tried to slash the tyres on the vehicles. I think if they succeeded they would be minus fingers or even a hand.
Having read about it, I put diesel in last Thursday, but did not fill it up. On Saturday I topped up again to full this time for our away for Easter as Mrs B needs a bit of relaxation after being cooped up in hospital for 2 weeks. Cost was £116 for 65 litres. Ouch! Went down the road today and did not see any queues at the two stations I passed.
We had fuel shortages in the Bedfordshire and Northern Buckinghamshire area last week , but all back to normal since the weekend. And the price of diesel has dropped to £1.73 a litre.
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