Ofgem price cap

Londonlisa12

molerat

Thank god somebody can understand it and how the energy companies have already got around it and in fact will be earning more.

The way the BBC have reported it this morning makes me think they are run by the Energy companies and OFCOM who lets face it are hand in hand.

tim123456789

sm9ai wrote: »

This is a very badly reported story.
Imagine all of those giant manor houses being heated up all year for £1,136. That would be grossly unfair. (Although we do have a Tory government...)

You still pay per usage, the cap is on the unit rate, not the annual bill. So as you switch regularly, you won't see any benefit to this.
(In fact, you will probably find your tariffs will increase to cover the savings offered to those who don't switch ).

The biggest savings you could get, if you don't already use it, would be to fit landlord smart Thermostat to properties e.g. https://www.inspirehomeautomation.co.uk/landlords.php

That's not going to stop someone who is too cold plugging in an electric heater to top up with, is it?


be careful what you wish for

tim123456789

acekings wrote: »

Yes it does seem confusing and has left me confused as I have multiple rental property energy accounts and I switch a lot and for example even on the cheapest fixed tariffs my bills for some properties come to £1800 a year. So if this cap only applies to SVT then it makes sense to roll off on to a SVT or switch now.

However if energy companies scrap SVT tarrifs then perhaps this will end up as just a gimmick.

If Ofgem’s redress/compensation model is anything to go on I don’t hold out much hope!

I'm sure that if companies scrap their SVT OFGEM will make the rule apply to the default tariff whatever it is that the supplier calls it this week.


Companies cannot force people onto a fixed term tariff, that's not allowed. They always have to offer a non-fixed-term deal.