Scottish Power letter re price rise for elec. + cap offer

onzey

Hi

We only have electricity in our house (with Scottish Power) and I've received a letter from SP saying that prices will go up as from 17/10/05.

However they are also offering me the "the opportunity to switch to our existing Capped Price Electricity Offer". It adds " This offer will guarantee your prices - at the level they were at before this price increase with the addition of a small monthly premium - and protect you from any electricity price increases until May 2007"

It goes on to say that when you switch to the Capped Price electricity, "you'll pay a little more than our standard price....."

In the small print it says "...... our Capped Price Offer prices are higher than our current standard prices by an equivalent of £1 (inc VAT) for electricity per month."

Anyone else had this letter and does it mean if I go for the cap, my electricity rates will stay exactly as they are now but I just have to pay £1 per month extra? Or, if it means the actual electricity rate is slightly higher, how can this work out to £1 per month, as it will depend how much you use. Am I being thick? (don't answer that please!).

I have to take up the offer by 21/10/05.

Thanks.

Nemo

onzey,

I'm just in the process of moving to SP. It took me some time to work out how the capped thing works. They don't make it very clear. Either that or we're both thick!

Using the rates for my area (Yorkshire):-

The first 225 units per quarter of electricity on capped are 12.390p/unit (+VAT) instead of 11.120p/unit (+VAT) on uncapped.

(12.390p-11.120p) = 1.27p/unit
225 units * 1.27p = £2.86+VAT = £3.00/quarter ie. £1 per month.

Subsequent units are the same price.

tootles_2

Be careful, make sure that if you find the prices are costing you too much and you want to change suppier you may be charged a fee for moving.... I read about this somewhere but cannot remember where, I think it actually referred to the Powergen capped rate but check with scottish power before you sign on the dotted line, if you phone, take the persons full name and extension number, and record the conversation as you remember it!!!