economy 10 tariff

donk

does the new price cap on 1st january cover economy 10 tariff

matelodave

Martin Lewis, founder of MoneySavingExpert.com, said: “The energy price cap which is being launched is misnamed, it is not a cap on the price you pay, it’s a cap on the rate that will be charged.

“This is important, even some BBC bulletins were today reporting that the price cap will be set at £1,137/yr and that is the maximum anyone will pay - that is simply untrue.

“The cap depends on your usage, the £1,137 figure is a nominal figure based on what the cap would be for someone with typical usage, if you have higher usage your cap will be higher, if you have lower usage your cap will be lower.

“The misleading coverage of the price cap has led many higher users to wrongly think that they’re about to get a very substantial reduction in their bill, that is not true. For most people who are on standard tariffs, the energy cap is likely to reduce their bills by around 10% at most.

If you aren't on a "standard"tariff then you probably wont be affected.

The so called price cap has really been overhyped, most people won't see a difference because their energy bills will not be capped. The cap applies to the cost of a unit of leccy/standing charge so if you use more you'll pay more and if if you use less you'll pay less.

The price of energy wont actually go down it's just that there'll be a limit to the increases. However as this will get revised twice a year I guess those on a standard tariff can all confidently look forward to a twice a year rise.

The other consequence is that fixed price deals wont be as cheap as they were and some non-standard deals could actually work out as being more expensive to pay for it.

There are always unintended or unforseen consequences, especially when the government or other do-gooders put their oar in.

Those changes which appear to save some people money will have to be paid for by others. Nothing comes for free.