Impact of OFGEM price cap

kparkrob

thanks for your input - i'll have a look over that link. I'd be interested to know whether the night control rates are included in the cap. We've been with SP for many years and this is the first time there's been a sudden large hike in rates. I understood that the night CONTROL rates apply where the supplier controls the amount of power provided for storage heating according to weather forecasts and as such I have been unable to find any comparative alternative supplier over time. Considering biting the bullet and using the Scottish Govt incentives to make a complete change over to an air source heat pump - we have no gas connection.

geoffreyq

Letter from SSE :" Ofgem have introduced changes to how suppliers can apply Direct Debit discounts......This means we've increased the price you'll pay for your gas."
In my case the estimated increase to remain on SSE's Standard tariff is 32.4%.
Thank you OFGEM for your wonderful new price cap!!!

welshmoneylover

There was always a danger the cap would lead to price increases.
I believe the cap will be increasing too at some point so watch out

[Deleted User]

welshmoneylover wrote: »

I believe the cap will be increasing too at some point so watch out

From https://www.ofgem.gov.uk/publications-and-updates/ofgem-proposes-price-cap-give-11-million-customers-fairer-deal-their-energy

Ofgem will update the level of the cap in April and October every year to reflect the latest estimated costs of supplying electricity and gas.

So twice a year.

welshmoneylover

gsmlnx wrote: »

From https://www.ofgem.gov.uk/publications-and-updates/ofgem-proposes-price-cap-give-11-million-customers-fairer-deal-their-energy

So twice a year.

😮
Sounds as if prices might go up twice a year!

Kerching!

System

The likely increase in April is well trailed in ML’s recent blog:

Quote

On 1 January, the cap starts at £1,137 for someone with typical use. Yet the cap does vary by region and payment method, and of course if you use more, your cap will be higher or if you use less, your cap will be lower. This will cut bills for most big six standard tariff customers by a typical £80 a year.

On 1 April, the cap is likely to rise to £1,250. That initial cap only lasts three months, after that it is reviewed every six months. So the next cap lasts until 1 October 2019.

The rate of the price cap is based on an already published algorithm from Ofgem, which factors in average wholesale prices (the price energy firms pay) over a prior six-month period. For the cap starting on 1 April, it is prices from 1 August 2018 to 31 January 2019. So we are already halfway through that period.

Using that data, at the current run rate the new cap will rise to £1,250, and it'd take a huge price crash now for it to not rise.

Unquote