The Energy Price Cap 2022 Explained

[@ThatFinanceShow]

So for the typical house under the new frozen price cap, here's what the rates look like. (if paying on direct debit). Electricity Unit rate: 34.00p per kWh Standing charge: 46.36p per day. Gas Unit rate: 10.30p per kWh. Standing charge: 28.49p per day

[@gabrielstrong7029]

That animation of the UK map in blue is awesome! Did you animate that yourself?

[@ThatFinanceShow]

Hi Gabriel, no I didnt animate it. I have paid for subscriptions to animations and footage and this was from there, I just added text.

[@chris-jh4cx]

Managed to look into a Discord server? I would be keen to join!

[@ThatFinanceShow]

Hi Chris, yes I have and I think I will at some point but I want the channel to grow first. Otherwise it will just be me and you rattling around in there! Which is fine!

[@jorda_n_]

Ha! Just got off the phone to my old man about the energy crisis! Funny but we actually came to some solid tax solution being a social tax to fund the decentralisation of energy rather than the horrible phrase of a ‘windfall tax’ as we know the ‘right’ couldn’t do anything that would affect ‘profits’. Of course a price cap and sub the difference was the only option for the interim! My concern is how are these energy companies going to take us for a joy ride after we’ve paid them an extortionate amount once the 2 year cap has long gone!

[@dabe1971]

The energy companies you pay, i.e. the suppliers, can't 'take you for a ride.' The price cap stops them making more than 1.9% margin so as long as the wholesale price has dropped in two years time, the capped price will drop too. And if someone has finally put a bullet in Putin's head and the market has stablised you could see fixed deals below the cap price although they won't ever return to the pre-crisis figures. It's the energy generators and distributors that are the ones raking in the profits and most suppliers aren't involved in that business. Some are, but most are not.

[@ThatFinanceShow]

it gives us 2 years to hope the wholesale price of gas falls. if not, we've only postponed the inevitable.

[@cooper8t]

I always thought Government debt was a good thing if it was used to invest in assets, public services, infrastructure, environmental projects etc as this will lead to a better more productive/resilient economy in the future. How subsidising energy bills whilst the energy companies pay squat all is a good short/medium term strategy is beyond me. But hey, what do I know?

[@ThatFinanceShow]

You know as much as me mate! It's simple for me, the energy companies should contribute to solving the problem. End of.

[@pip1723]

£200 billion and the tax payer picks up the tab while the energy producers make record profits sounds about right . The Party of low taxes my foot !.

[@ThatFinanceShow]

Let's see how the promises of low taxes hold up against racking up debt. The two don't mix well.

[@PrettyPennyClub]

Such a good video. Very clear. So many people I've spoken to thought that the £2500 was the max anyone would pay.

[@sofakritic6914]

Hey mate, its Sofa Kritic... came from your comment there ))))... good video mate. Now you got a new critic to your channel. watchout!

[@ThatFinanceShow]

Ah welcome sofa! I’ll keep my eye out for you 👁

[@sofakritic6914]

@@ThatFinanceShow yes please do! have a big success with channel!

[@southwestkinema9149]

Scarcity. Yeah right. That’s the big lie right there.

[@ThatFinanceShow]

So what's the truth?

[@robertkilminster3402]

Gas should be a thing of the past, but the gas industry is worth billions, so they hanging on to it for dear life for as long as they can. My sister in law has just bought a house with no heating. It’s still approximately 3x more expensive to put in a sustainable heat source such as an air source heat pump compared to gas! Unless the government provide better incentives for renewable energy, people will still opt for gas, every time.

[@taggthis]

Great video - what happens after the two years are up?

[@ThatFinanceShow]

All depends what is happening to wholesale gas prices. If they are still high and there's no other intervention - we revert back to going up to silly prices. We hope that in these 2 years the Russia situation is sorted.

[@windspoint]

Great insight as ever! I do find it strange that most of the countries who attended the climate summit in Glasgow are suffering massive energy cost rises and blaming it on the whole sale price! If thing were so grim how come as you say the energy companies are making a fortune! You'd think if it costs the same to get gas to our door as it did in recent years the energy companies could sell it at the usual cost plus and still make loads of profit! I'm starting to think that maybe in Glasgow at the summit someone came up with the idea to put the costs up so you and would use less and aid the reduction in greenhouse gas but we don't think like that we might turn the heating down abit ! Another thought we are expecting electric at the moment so how come we aren't benefiting from that! It all seems a bit of a cartel to me. Sorry I couldn't stop typing

[@ThatFinanceShow]

ooooohhh you're onto something here. secret handshake stuff.

[@baggyobeast]

Thank you for explaining this, I have been scouring the Web for this and getting nowhere!

[@ThatFinanceShow]

Glad it was helpful!

[@ABB-bw6tc]

That’s changed now

[@dalamar6228]

Great explanation of the current situation here in the UK. Could you please give us a corresponding round up of what’s happening with energy price caps in Europe? Or maybe there aren’t any. This is thinly covered in the news.

[@ThatFinanceShow]

I don't know the European situation as well, will have do some more research. What I do know is that they are more reliant on Russian supply than we are which right now, is not a good thing.

[@IainGeddes]

"Wandered in late to an office party, ordered a MASSIVE drinks order and stuck it on the ever-growing tab!" - what a fantastic way of putting things! 🤣🤦‍♂ Excellent video Tom, I'm sharing this with a few family/mates who are still confused when it comes to the price cap 👍

[@ThatFinanceShow]

Thanks Iain! You can picture everyone cheering cant you, 'next rounds on me!'

[@IainGeddes]

@@ThatFinanceShow 😂👌

[@alexe5461]

so what are the new gas and lecky kwh and standing charge rates?

[@dabe1971]

Depends on where you live, they differ regionally.

[@ThatFinanceShow]

Beat me to it, I've just pinned a comment to the top with the rates! Thanks.

[@alexe5461]

@@ThatFinanceShow thanks for the info much appreciated. just one more question. what will be the new percentage increases for both please?

[@cathy2708]

Im so incredibly grateful for this explanation. Just this weekend I was trying to make sense of it all, expecting an absolute doomsday scenario. Thank you so much for putting this together. If you re in need for a video idea, the rising cost of food is boggling my mind 🤯

[@ThatFinanceShow]

so glad it was useful, thanks for watching