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Ofgem and the price cap.
Hi all.
The way I understand it............at the beginning of this month (January 2019) Ofgem set a price cap for customers who were on their suppliers standard tariff, and pay by direct debit. I meet both of these criteria, and it's also a dual fuel tariff, which may also be a condition of the price cap.
My energy supplier is Avro energy, who have been an excellent supplier for the last 16 months, with no problems at all. When I joined them I was on a twelve month fix at £103 p/m. This ran out in October last year, when I was then moved to their standard tariff. When I looked into switching tariff, or supplier, Avro again came out cheapest, although there was a monthly increase of £25. I have looked at them again this week and the deal is still there, but now the price cap has come into effect by the regulator.
I know that Ofgem will review the price cap twice a year, and are expected to put it up in April, and potentially again in October.
Basically the maths are this:
Currently I pay 12 x £103 = £1236
If I take the new offer I'll pay 12 x £128 = £1536
The price cap is currently £1137 although likely to rise.
I don't understand why I'm told it's better for me to fix, when, if I stay on the standard tariff, I'm already paying more than the cap. What have I missed? and how does it work? Once the energy company reach the threshold of the price cap, do I pay less? Do I start to be in credit with them? Do I have to pay it and then take a refund the following month? or is the whole thing just another con. It's too hard to work out, and I can't seem to find the rules of it anywhere.
The way I understand it............at the beginning of this month (January 2019) Ofgem set a price cap for customers who were on their suppliers standard tariff, and pay by direct debit. I meet both of these criteria, and it's also a dual fuel tariff, which may also be a condition of the price cap.
My energy supplier is Avro energy, who have been an excellent supplier for the last 16 months, with no problems at all. When I joined them I was on a twelve month fix at £103 p/m. This ran out in October last year, when I was then moved to their standard tariff. When I looked into switching tariff, or supplier, Avro again came out cheapest, although there was a monthly increase of £25. I have looked at them again this week and the deal is still there, but now the price cap has come into effect by the regulator.
I know that Ofgem will review the price cap twice a year, and are expected to put it up in April, and potentially again in October.
Basically the maths are this:
Currently I pay 12 x £103 = £1236
If I take the new offer I'll pay 12 x £128 = £1536
The price cap is currently £1137 although likely to rise.
I don't understand why I'm told it's better for me to fix, when, if I stay on the standard tariff, I'm already paying more than the cap. What have I missed? and how does it work? Once the energy company reach the threshold of the price cap, do I pay less? Do I start to be in credit with them? Do I have to pay it and then take a refund the following month? or is the whole thing just another con. It's too hard to work out, and I can't seem to find the rules of it anywhere.
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Comments
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The price cap is not a price cap as such. It was a maximum that can be charged using a set figure for gas and electric usage. If your usage is greater, then you pay more.0
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Hi all.
The way I understand it............at the beginning of this month (January 2019) Ofgem set a price cap for customers who were on their suppliers standard tariff, and pay by direct debit. I meet both of these criteria, and it's also a dual fuel tariff, ....
I didn't get any further, but I see you joined us in 2015 albeit this is your first post
May I suggest you consult a comparison site to find the best deals for you.
It may well be that dual fuel is not the cheapest soloution0 -
Thankyou. That's exactly what I couldn't get my head around. :-)PennineAcute wrote: »The price cap is not a price cap as such. It was a maximum that can be charged using a set figure for gas and electric usage. If your usage is greater, then you pay more.0 -
Flt._Lt._Biggles wrote: »I didn't get any further, but I see you joined us in 2015 albeit this is your first post
May I suggest you consult a comparison site to find the best deals for you.
It may well be that dual fuel is not the cheapest soloution
Maybe I haven't wanted to post, fearing that it may attract snarky comments! Can't think why I might think that! Just because I haven't posted in the forum, doesn't mean I haven't visited or used the site. :-P0 -
Maybe I haven't wanted to post, fearing that it may attract snarky comments! Can't think why I might think that! Just because I haven't posted in the forum, doesn't mean I haven't visited or used the site. :-P
Maybe?
Or maybe not, eh? I'm sure you have visited the site plenty of times before ... and used it.
Still, feel free to report me and get another helpful poster removed from this site. :cool:0 -
Haha. Helpful? …..Hardly!
It was a genuine question on something I didn't understand.
I've no need to report you though. I'll treat it with the disdain it deserves and move on. ;-)0 -
Haha. Helpful? …..Hardly! ..
I fully agree with you. This is far from helpful to anyone ... unless they came to MSE to save money :cool:Flt._Lt._Biggles wrote: »...
May I suggest you consult a comparison site to find the best deals for you.
It may well be that dual fuel is not the cheapest soloution0
This discussion has been closed.
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