Svr not so expensive ?

joe134

Hi Guys, Just had another look at Scottish Power deals as my 20 th fix is due to end dec18.
They have 1and 2 year fixes, and this time for some reason they have shown my svt for the year.
1 yr is £1230
2yr is £1251
Svt is £1245
Is the svt so low because of the new price cap?
I thought it would be at least 25% higher than the 1 yr fix!
Every time I have done comparisons , they claim, save £100 s by switching as I would pay over £1300 + on their svt.
Seems not.
Am I missing something ?
Hardly worth fixing , at present, as I will have a penalty with the 1 yr fix, none with svt.
I know the cap is reviewed in April ?

molerat

The SVT will increase over time though. Although the savings are not that much with the 1 year the gap will widen as time progresses and SVT will soon overtake the 2 year.

joe134

molerat wrote: »

The SVT will increase over time though. Although the savings are not that much with the 1 year the gap will widen as time progresses and SVT will soon overtake the 2 year.

Yes, it’s to be reviewed in April, so it no doubt will rise then.
However, It gives a bit of leeway for looking for another fix, except, I’m expecting them to rise to make up for the cap on the svt

PeterGr

How is SVT being evaluated? There will be 4 SVT's that apply in the next 12 months. ( 19 - 31 Dec, 1 Jan - 31 Mar, 1 Apr - 30 Sep, 1 Oct - 18 Dec ) Only 2 of those tariffs is known at the moment.


I used CEC yesterday and my12 month projection was still based on the current SVT even though the projection is for 2019. On 1 January I assume it will change to use the use price capped SVT even though my fix ends after 31 March.

System

Worth a read: (source MSE)

A briefing on the new price cap:

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.

joe134

PeterGr wrote: »

How is SVT being evaluated? There will be 4 SVT's that apply in the next 12 months. ( 19 - 31 Dec, 1 Jan - 31 Mar, 1 Apr - 30 Sep, 1 Oct - 18 Dec ) Only 2 of those tariffs is known at the moment.


I used CEC yesterday and my12 month projection was still based on the current SVT even though the projection is for 2019. On 1 January I assume it will change to use the use price capped SVT even though my fix ends after 31 March.

I am assuming as my fix ends Dec 31st, it is the new svt from 1st jan.
To march 31st
It matches Hengus’ post.
I can soon check by looking at their svt as it stands now, which I haven’t as yet.
All comparison sites used the current one, bumping up the projected saving to be made, by switching now.
Assume they will till jan 1st which to me is wrong as they know my tariff I’m on now and ends dec31st, so they should all use the new year projections svt’s