MSE News: Ofgem confirms levels for prepayment price cap ahead of April launch

in Energy
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Replies

  • Hi Wig,

    I calculate the cap for your region to be (excluding VAT)

    Standing charge 26.190 pence per day
    Unit rate 3.189 pence per kWh

    Would welcome any confirmation of this from anyone else who has worked it out.

    Thanks
  • phillwphillw Forumite
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    Eighth Anniversary 1,000 Posts Name Dropper
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    OFGEM say these OAPs are not tied to a SV tariff but Joe and Doris and Dorothy and Jim in the real world are actually tied.

    They aren't tied, they've made a choice. It might not be a good choice, but unless we get rid of capitalism then there isn't anything that can be done. It would also put Martin out of a job.
  • WigWig Forumite
    14.1K Posts
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    Hi Wig,

    I calculate the cap for your region to be (excluding VAT)

    Standing charge 26.190 pence per day
    Unit rate 3.189 pence per kWh

    Would welcome any confirmation of this from anyone else who has worked it out.

    Thanks

    Hi superkoopauk,

    Without standing charge?

    EBICO has no standing charge.
  • Yes the unit rate cap is independent of the standing charge. I imagine Ebico will introduce a standing charge for PPM if they haven't done so already. Looking at their website it appears they have (under their new agreement with Robin Hood Energy) - 25p a day.
  • WigWig Forumite
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    Yeah, they did, but they promoted it as optional.

    Does this mean because they offer an alternative tariff for PPM they do not have to comply with the new cap on their "no standing charge" PPM tariff?
  • footyguyfootyguy Forumite
    4.2K Posts
    Yes the unit rate cap is independent of the standing charge. I imagine Ebico will introduce a standing charge for PPM if they haven't done so already. Looking at their website it appears they have (under their new agreement with Robin Hood Energy) - 25p a day.

    Yes, according to Ebico:
    Why are you changing tariffs?The Competition and Markets Authority (CMA) is introducing a price cap on pay-as-you-go price plans from April.


    This is being implemented with the best intentions – to protect some of the most vulnerable energy customers. Unfortunately, it also means that a zero standing charge pay-as-you-go price plan is no longer commercially viable. Consequently, under our new energy supply partnership with Robin Hood Energy, we have launched two new price plans. Ebico PrePay is exclusively for pay-as-you-go customers. It has a standing charge of 25p per day per fuel. Ebico Zero, for customers who pay by Direct Debit or on receipt of a bill, has a zero standing charge. Both price plans are price-guaranteed until at least December 2017.
    https://ebico.org.uk/ebico-news/new-cheaper-gas-and-electricity-tariffs-under-the-new-partnership-with-robin-hood-energy/
  • WigWig Forumite
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    I sent them an email asking them what is going to happen when I don't switch to Ebico Prepay.

    I will update when I get a response.
  • Wig wrote: »
    I sent them an email asking them what is going to happen when I don't switch to Ebico Prepay.

    I will update when I get a response.
    If you do not want to move, you will remain on the EquiGas/EquiPower tariff, supplied by SSE. SSE will write to tell you about any significant change to your current terms and conditions, including any increase of price, at least 30 days before it takes effect.
    Link as above
  • WigWig Forumite
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    Yeah but how do they square that with the new cap on PPM?

    They can't keep me on the same tariff because of the cap.
  • Wig wrote: »
    Yeah but how do they square that with the new cap on PPM?

    They can't keep me on the same tariff because of the cap.

    As indicated earlier
    SSE will write to tell you about any significant change to your current terms and conditions, including any increase of price, at least 30 days before it takes effect.

    and perhaps consider that in light of the later news that
    SSE has now closed EquiGas/EquiPower to new sales and can no longer assure us that the EquiGas/EquiPower tariff will remain in market for a reasonable period of time.
    https://ebico.org.uk/ebico-news/new-cheaper-gas-and-electricity-tariffs-under-the-new-partnership-with-robin-hood-energy/
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