This is getting ridiculous (energy prices - Strictly NO referrals!)

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While the costs of works in a dense city may be more expensive they will serve a vastly denser population so the cost in theory is split between many more people and is thus lower per capita. We see the same in providing essential services, things are just more expensive per capita in less densely populated and more rural areas.

Typically the very dense are as I said more expensive per head than medium density towns etc
London will probably actually work out similar to pretty low density when you take into account historical costs. (IE some sites will sit on land worth a fortune at current value)

Its difficult since two projects in dense populations can look very very different, mainly down to if land exists already.
Eg the price of creating a substation where land needs to be procured in a densely populated city is a world apart from one where a site already exists and all your talking about its the direct infrastructure costs itself.

HS2 is a prime example of this in regards how much was spent securing the land needed, vs say had we have been able to rip up one of the existing rail lines and installed the HS2 there.

I expect like in many things there will be areas of high density populations where there is space to upgrade to support high electricity usage and other areas where there simple isn't and they will need to either procure space or look at other options (like larger substations further out)

Really these sorts of thing tend to have a cost per head much like an inverted bell curve with both the extremes being expensive per head and the middle ground where the land is relatively cheap and the economies of scale already reached being the low cost per head.

It should be recognised that all the DNOs have a variety of high and low density its just that some lean more to one extreme than the other.

Things like meters, the meter costs the same, but the cost of a meter installer will be more in London than the midlands.
 
Soldato
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10-11p kwh on tracker tomorrow.
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Soldato
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Mine's 29.83p for gas, which is more than 4p over the rates in the table for my area :p that table isn't a hard limit.

Ha, fair enough. I thought there was a cap on SC but I got my wires crossed. The cap is an overall cost and appears to be able to be split between SC and units at the suppliers discretion (someone can advise if I am still wrong :cry:)

I still think @eddiemcgarrigle is wrong at 64.56p SC for gas
 
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Soldato
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Ha, fair enough. I thought there was a cap on SC but I got my wires crossed. The cap is an overall cost and appears to be able to be split between SC and units at the suppliers discretion (someone can advise if I am still wrong :cry:)

I still think @eddiemcgarrigle is wrong at 64.56p SC for gas

On the SVR from my understanding it is its not at their discretion.

The SVR is made up of two elements, zero usage cost, and unit price. The zero usage cost is the SC, paid by everyone hooked up to the grid with an account. The unit price element they then look at what they consider to be typical usage, and that creates an annual cost. The two elements are added together and thats the figure they present. To further complicate it, both of these elements change based on region and the final figure presented is an average of all regions.

The reason we see some variances on SVR tariffs is the suppliers have some permitted margins, they can of choose to use some of those margins to make their tariffs cheaper.

Where it is less clear is on non SVR tariff's. These are not regulated for profit's. But I believe there is still some kind of obligation to provide XX amount per customer towards a national cost, to fund things like the green levy, WHD etc. A recent video from the Octopus founder suggests Octopus still have some kind of minimal SC obligation on their non SVR tarioff's but he wasnt very clear on it, very vague.
 
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Soldato
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On the SVR from my understanding it is its not at their discretion.

Things you need to know​


The energy price cap does not set a limit on the unit rate or standing charge a supplier can charge you, but it does set a limit on overall amount you will pay. For example, you could be on a tariff that has a higher unit rate but a lower standing charge.


The standing charges are the maximum costs a supplier can charge a customer who has not used any energy. Suppliers can also charge less than the limit for either standing charge or unit rate.
 
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Soldato
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Why you replying to me specifically?

Does their statement make sense to you?

So there is a quote on that page saying it does not limit the unit rate or SC they can charge the consumer, but it does limit the overall amount you pay., but how can it limit the overall amount you pay if they are not limited on the cost of unit rate and SC?

Also if there is no such limits, why are ofgem publishing tables for unit rates and zero usage cost?

Ofgem is the strangest regulator I have come across, not only do they make strange decisions, but they must have the most confusing system I have ever come across.
 
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Soldato
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What do you mean, why?
I'm replying to your opinion with fact from ofgem on how it works.

Richie was correct to start with.
Can you explain the points I brought up then.

If the suppliers can increase the unit rate and SC of their own free will, why are Ofgem publishing tables for SC and unit rates, and how can a overall amount a consumer pays be assured if the unit rate and SC are not limited?

The page you linked to basically contradicts itself.
 
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Soldato
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Can you explain the points I brought up then.

If the suppliers can increase the unit rate and SC of their own free will, why are Ofgem publishing tables for SC and unit rates, and how can a overall amount a consumer pays be assured if the unit rate and SC are not limited?

The page you linked to basically contradicts itself.
Well they can't increase it by free will can they because the combined charges have to come in under the cap rate. I don't see how it contradicts itself at all.
 
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