24/09/2026
📢 DUMMY'S GUIDE TO ENERGY: Everything You Need To Know — Gemma Hatvani FOLLOW ME 💗
🎯 THE #1 RULE — MEMORISE THIS!
❌ NEVER Compare by Direct Debit Amount
✅ ALWAYS Compare Unit Rates + Standing Charges (inc. VAT)
"I say this every single day — all day, every day. I’d say it in my sleep." 🛌
THE TRUTH NO ONE TELLS YOU — STOP PAYING MORE THAN YOU NEED TO
So many of you have asked me to put this together. I’m the person who sees the tricks, crunches the numbers, and fights for you every single day. Follow my profile, channels, and community — I post daily guidance, and the full guide will land there first. This is a work in progress, but these facts are urgent — Please read them now.
WHAT IS THE ENERGY PRICE CAP?
Let me be crystal clear: The price cap is NOT a cap on your bill. It is a cap on unit rates and standing charges for standard variable/default tariffs only. It does NOT mean your energy will cost a fixed amount per year — your actual bill depends entirely on how much energy you use.
• Set by Ofgem (the energy regulator)
• Reviewed every 3 months — January, April, July, October
• Only applies to standard variable/default tariffs — it does NOT apply to fixed deals or tracker tariffs
• If you're on a fixed deal — the price cap does not affect you at all until your fixed term ends
What it actually is: a cap on unit rates & standing charges for variable/default tariffs only
• Who it applies to: variable/default customers only — fixed deals & trackers are NOT protected
• Where to find the latest cap figures — and how they translate to YOUR home 🏠
• ❌ What it’s NOT: NOT a cap on your total bill — NOT a "maximum you’ll pay"
📅 PRICE CAP CHANGES — WHAT'S HAPPENING & WHEN
🗓️ 1 OCTOBER 2026 — CONFIRMED INCREASE
• New cap level: £1,723/year (up 4% / +£60 from July–September)
• Gas unit rate: rises from 7.33p → 7.97p per kWh
• Gas standing charge: 29.68p/day (slight increase)
• Electricity unit rate: 26.32p per kWh — VAT removed from electricity Oct–Dec 2026, so this already reflects that reduction
• Electricity standing charge: 54.83p/day (slight drop)
• Bottom line: Higher gas costs are driving this increase — households that use more gas will feel it most
🗓️ JANUARY 2027 — PREDICTED TO RISE AGAIN
• Early forecasts suggest the cap could rise significantly — one estimate points toward £2,118/year (+£395 vs October)
• Important: These are predictions, not confirmed — Ofgem will announce the actual December cap in late November
• Why this matters: If you're on a variable/default tariff, your rates could jump again in January — this is exactly why fixing or switching needs careful thought
How Your Bill Is Calculated (The Simple Math)
• Daily Standing Charge = fixed cost every single day, whether you use energy or not
• Unit Rate = cost per kWh — what you pay for every unit you actually use
• Total Bill = (Daily SC × Days) + (kWh Used × Unit Rate) + VAT
• Direct debit ≠ your actual cost — it’s just a payment plan, not the price
How To Read Your Bill — Exactly What To Look For
• Where to find: gas & electricity unit rates + standing charges (including VAT) on your bill or energy account.
• Your annual usage (kWh) — not just pounds — this is how you compare deals fairly
• Payment vs usage — what you’ve paid vs what you’ve actually used (the difference builds credit or debt)
• Estimated vs actual reads — ⚠️ "E" means estimated — this is where bills go wrong! Always submit your own reads.
• Exit fees, contract end date, and when your fixed deal expires
How To Compare Deals Properly — Step-by-Step
1. Write down YOUR current rates: gas + electricity unit rate + standing charge (both, with VAT)
2. Get the NEW supplier’s exact same figures
3. Multiply by YOUR typical usage (don’t use their estimate!)
4. Add standing charges × 365 days
5. Include exit fees from old deal + any sign-up fees
6. Only then compare totals — never look at monthly payment figures first
Octopus Tracker or do I fix?
My honest advice:
• Choose FIXED if: You want peace of mind, you're on a tight budget, or you're worried about January's predicted price rise. A good fixed deal now locks in rates before any winter spike.
• Choose TRACKER if: You understand the risk, you can monitor prices, you use less energy in winter, and you're willing to see higher bills during cold snaps. Never choose Tracker if price spikes would cause you genuine financial stress — the safety limit is 100p/kWh, not 26p/kWh.
🚨 THE #1 RULE I REPEAT EVERY SINGLE DAY — NEVER BREAK THIS
NEVER compare energy by direct debit alone. I say it all day, every day — I'd say it in my sleep. Direct debit is just an estimate. Your actual cost comes from unit rates and standing charges, including VAT. Always compare those numbers, not the monthly payment figure.
The Jane Example — Don't Be Jane:
Jane pays E.ON £120/month. EDF offers £100/month. Jane thinks she saves £240/year and switches. She pays an exit fee, only to discover the unit rates and standing charges are actually higher. She now pays more every month — and lost money on the exit fee too.
💡 MY TOP TIP
Always compare unit rates and standing charges — NEVER, EVER compare only the direct debit amount.
The monthly payment figure is just an estimate — it tells you nothing about the true cost. Your actual bill depends entirely on unit rates + standing charges (including VAT). A lower‑looking direct debit can easily hide higher rates that cost you hundreds more over time. Compare the rates, not the payment — every single time.
🚨 BEWARE UNQUALIFIED SALES REPS — NOT EVERYONE HAS YOUR BACK
Right now, countless people are pushing you to switch who are unqualified and have no real industry knowledge. They are simply sales reps — for example, Utility Warehouse reps earn hundreds of pounds in commission per sign-up. The deal they pitch might be cheaper — or it might cost you more. Their priority is commission, not your bill.
💡 REAL DEAL INSIGHT — FOR HIGHER GAS USERS
• 5.78p/kWh gas fixed for 2 years — exceptionally strong unit rate right now, even with a higher standing charge
• If your annual gas usage is above average, the unit-rate savings will easily outweigh the extra daily standing charge — potentially £200+ saved over 2 years
• Golden rule: Always calculate based on your actual usage, not headline prices
• Fixing now locks you in before October's rise and any January spike — that's not just saving money, it's buying peace of mind
📌 YOUR ACTION PLAN — WHAT TO DO NEXT
1. Follow my profile & channels — the full Dummy's Guide is coming, plus daily updates, deal checks, and scam warnings
Join 👇
https://www.messenger.com/channel/gemma.hatvani/AbZStVfbgNExJ-Bv/
2. Check your bill TODAY — write down your current unit rates and standing charges (including VAT)
3. If you're on variable/default: Consider fixing SOONER rather than later — January's predicted rise could be significant
4. If considering Tracker: Ask yourself — could I afford my bill if rates doubled this winter? If the answer is no, stick with fixed
5. Before you switch ANYTHING — ask me first. Drop your details in the community — I'll help you crunch the numbers for free, no commission, no bias, just honest maths
💡 TOP TIP NUMBER 2
Always compare unit rates and standing charges — NEVER, EVER compare only the direct debit amount.
The monthly payment figure is just an estimate — it tells you nothing about the true cost. Your actual bill depends entirely on unit rates + standing charges (including VAT). A lower‑looking direct debit can easily hide higher rates that cost you hundreds more over time. Compare the rates, not the payment — every single time.
📌 Glossary — No Jargon
• kWh = kilowatt-hour — one unit of energy
• Standing Charge — daily fixed fee, like a line rental
• FIXED Direct Debit — payment plan, NOT your actual cost. This changes based on your usage and debt.
• Price Cap = Ofgem’s maximum rates for variable tariffs
• SMETS2 — second-gen smart meter (works with all suppliers)
• Exit Fee — penalty for leaving a fixed deal early (usually £25–£75 per fuel)
I'm Gemma. I've been in this industry. I know the tricks. And I'm on YOUR side. Your money, your home, your choice — always informed, never rushed.
👇 FOLLOW & JOIN THE COMMUNITY — because no one should navigate energy bills alone.