With the price cap (lets be honest just hikes) in the UK…how do you not end up paying the price cap regardless of consumption? It seems like whatever you use you’ll end up paying a ridiculous sum near the £4200 or whatever number they’ve picked today.
Say I use 15000kwH a year (honestly just pulling numbers out my ass) and that reached the cap, but my neighbour uses double that, would they still just pay up to the cap or beyond that because they’ve used that power?
My brain is scrambled on this!
In: 1
The price cap is based on average usage split between kWh and standing charge. If you use more than average you pay more. There is no maximum you can pay.
The cap is the price per unit, not the overall price for your bill, so your neighbour would pay twice as much as you would.
I hope this helps.
On top of that, you may pay standing charges, which would be a certain amount per day.
The prices quoted are supposed to be the amounts an ‘average’ family would pay.
The price cap isn’t actually a price cap – it’s a price per unit cap. The standing charge and KWH prices are what’s capped. The more you use the more you pay. Any annual price figures represent how much someone on typical usage would pay – but if you used more than “typical usage” then you would pay more.
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