The Energy Price Cap

I've got loads of mates who think that from tomorrow the most they will have to pay for their energy is £2500 per year. They simply won't/can't understand that they will pay far more than this, if they use more. I've got one mate who thinks that he will pay £2500 for the coming year regardless of what he uses, so there's no point in him turning the heating down, lights off or whatever to save energy. I'm tearing my hair out at the utter lack of communication skills in how the price cap works. It's going to be bedlam out there.

Here's how I try to explain it. Can anyone simplify it even more?

Beer is £5 per pint.

Jim is an average drinker and drinks 10 pints per week, so his beer bill is £50 per week

The brewery puts the price up to £10 per pint, but the government doesn't like this and caps it at £7 per pint, and says that therefore nobody will pay more than £70 per week for their beer, on average.

Jim still drinks 10 pints per week, so his beer bill is now £70 per week.

Lottie drinks 4 pints per week, so her bill used to be £20 per week, but it has now gone up to £28 per week.

Frank drinks 15 pints per week, so his bill used to be £75 per week, but it has now gone up to £105.

Frank complains bitterly, saying he thought beer was capped at £70 per week, so why is he paying £105?

Frank doesn't understand that if he drinks more beer, he will have to pay more. The cap is on the price per pint, not the total price. Frank feels that he's been misled by the government, the brewery and his local pub.

 

Pi55e5 me off that they are also saying we will "save money" when, in reality, it is a 25% increase .

 

crackers how badly it’s being communicated. Far too much mentioning of the average household bill, often with the world “average” dropped, rather than a cap on energy units. I read on the bbc yesterday that Truss didn’t use the word “average” on several occasions!

You’ve done a great simplified example, hope your friends get their heads around it

 

When the PM publicly states £2500 is the max and won’t publicly( at least not what I’ve read or heard) apologise/retract it, then it’s little surprise that’s the way some people think

 

I don't get why people thought the useless government was telling people you can have your heating on full 24/7 for the foreseeable and won't pay more than 2,500.

 

As often is proved, Once things are said especially by govt officials the seed is sown and starts to grow. Some will hang onto every word until the reality of it kicks in,

 

Regardless of how good, or not, communication is people would have to be pretty stupid to think that they could have the heating on full pelt 24 hours a day, and run as many electrical devices as they like, and they would ONLY be charged this mythical figure of £2,500 per year. Are people really that thick?

 

The confusion comes from use of the word "cap" couple with the nonsensical "typical household". There is no cap. There is no such thing as a typical household.

If they'd described it as a "new, higher fixed rate per unit" then they might have stood a better chance of getting the message across.

 

I’m sure a lot of people thought it was to follow the all inclusive drinking tariff theory where loads of folk would drink themselves silly but plenty would drink below the expected consumption.
£2,500 was going to be the charge for high and low users therefore.

 

Sadly, some people are. I've spoken to some of them. To be fair, I don't think they REALLY are that thick, it's just that they blindly believe what Truss and others say.

My mate to me: "Who are you to argue with the UK Prime Minister? She says nobody will pay more than £2500, so that's what it is. Why should I believe Stahlrost from the BBS when the Prime Minister says everything will be OK?". What a complete mess!!!

 

I know a few who have been thinking the same, too. Managed to get it across eventually, but they should really change how they communicate it. I've just told people that, the cost of gas and electric is basically double it was last winter. There's no limit how much you can buy...

 

Once my Oct direct debits go out, I will be in front not by much but I will be in front before the new bills are generated around the 20th October.

SSE have already emailed me saying that my dd for gas is going up from £100 to £180 and my electric from £150 to £180.

I've already estimated that my bill for last quarter will be around the £450 mark, so basically wanting me to pay 80% of last quarters bill in the 1st month. If I can't reduce the DD like I have been able to before then I will do what others have and cancel it

 

No and it’s about time they started having to go to prison or something that’s a proper punishment for it.

 

It's on a par with



Sadly per will believe what they want to believe