With lots of talk of the Price Cap falling, what is happening to customers bills each quarter?
We at BFY Group have long been a vocal advocate to improve messaging around the real costs to customers under the Energy Price Cap
Trying to annualise the Price Cap is challenging at best, and confusing at worst, with one of the key challenges being that OFGEM can't provide a 12 month price for a 3 month product
One way to explain what's happening is to look at the Price (Unit Rate, Standing Charge) and Consumption Volume impacts of the Price Cap changes
The simple summary at the moment is prices are projected to stay around £2,000 into 2024
We understand that Ofgem have done their analysis of consumption data, and will be bringing down their estimate for the median average consumer
Based on our analysis, customers should not expect to see any further bill reductions driven by consumption volume - 2022 and 2020 had low Heating Degree Days (driven by warmer weather in typically colder months reducing gas using), which means those reductions are already being seen
However, 2023 YTD shows an increase in Heating Degree Days compared to 2020/22 (driven by colder weather in typically colder months increasing gas usage) which means customer bills could increase
Ian Barker
Ian shapes the BFY vision and inspires our team to bring it to life, while remaining central to complex client engagements in Strategy, Commercial, and Operations.
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