energy bill cap

Will my dual fuel bill be capped at the new govt level from now on?

Hi @jjstone,

Bulb’s unit prices were (and still are) under the OFGEM cap limit - Bulb has recently reduced their ‘standing charge’ rate to be below OFGEM’s cap (but at the loss of the dual fuel discount) - see https://bulb.co.uk/blog/simpler-statements-and-lower-standing-charges .

I’ll see if I can work out what the OFGEM cap limits actually are for an example - they are listed on https://www.ofgem.gov.uk/energy-price-caps/levels-energy-price-caps , but not in an ‘easy to view’ manner for most people.

According to https://www.ofgem.gov.uk/system/files/docs/2018/11/default_tariff_cap_level_-01_january_2019-_31_march_2019.pdf , in the East Midlands (my region), the Electricity Cap for standard credit is £592.01 for 3,100 kWh with a ‘nil kWh cap’ rate of £89.23/year.

If we assume the ‘nil cap’ (no usage) is ‘standing charge’, that’s a maximum of £89.23/year standing charge. Bulb charge me £74.62
Units will be (592.01 - 89.23) = 502.78 / 3,100 = £0.162187 per kWh - that’s 16.22p . Bulb charge me 13.262p per kWh.

Gas cap is £105.35 ‘nil kWh’ and £545.62 for 12,000 kWh.
The maximum standing charge is £105.35 - Bulb charge me £74.62.
Units will be (545.62 - 105.35) = 440.27 / 12000 = £0.03668916 - that’s 3.67p. Bulb charge me 3.623p per kWh.

You might think those prices are just pennies (or parts of pennies) below the cap - but that is ‘per unit’ and people typically use thousands of units.

For comparison, one of my old suppliers (Scottish Power), on their current ‘Standard Variable Rate’ charge:
Gas 25.82p per day = £94.24 standing charge per year - a lot higher than Bulb
Gas 3.657p per kWh - that’s 0.034p more than Bulb.
Electricity 21.4p per day = £78.11 standing charge per year - around £4 more than Bulb
Electricity: 16.166 per kWh - Bulb is about 3p per unit cheaper and Scottish Power is within 0.6p of the cap.

Of course, your region prices will differ (and so will the cap), but hopefully the above will help show how to work it out for yourself if necessary. It’s worth noting that if you are on a ‘fixed rate contract’ (which Bulb do NOT offer), then the ‘cap’ isn’t applicable and you can be charged more than the ‘capped’ price!

Will my dual fuel bill be capped at the new govt level from now on?

In addition to @RichyB’s comprehensive answer …

Do be aware that it is a cap on the unit rate and standing charge. It is NOT a cap on the total bill. i.e., if you use more, you will pay more.

Your total bill WILL NOT BE CAPPED with any energy supplier. The cap does not mean you can use as much as you like for one fixed price.