energy cap

Handel10

Hello my first time here! I had a letter from Scottish power today informing me of price rise. Being as I'm on standard variable quarterly cash economy 7 I thought the rate was to be capped at 17p a unit but they've got me as still paying 21p day & 10p night. Have I slipped through the cracks somewhere? Any help will be welcomed

PeterGr

The price cap is set by Ofgem and updated on 1 April and October. Ofgem have announced an increase in the price cap from 1 April (of about 10%), and the suppliers are raising their SVT prices accordingly. This I guess is what is behind the letter you have received. The cap sets the maximum amount paid for the average consumption, and I imagine the E7 rates you have been advised comply with the cap.


But your choice of the SVT and cash payments makes your tariff higher than it could be. I would suggest you look at some price comparison websites to see what options you have by switching.

molerat

The only thing that is actually capped is the daily charge. As long as they get the average consumption customer to fit the £ cap, E7 is based on a 58%/42% day/night split, there is some wiggle room on the unit cost and you can bet the suppliers have done their sums to maximise income.

PeterGr

The Ofcom average customer (4200 kWh, 56%/42%) has an average cap of £868.92 inc VAT for standard credit terms, and £815.16 for direct debit terms. The day and night rates and standing charge have to result in this cap being achieved, However individuals will have different kWh totals, and day:night splits.


(Note each electricity region has a different cap. The details of the cap for each region is on the ofgem website) https://www.ofgem.gov.uk/publications-and-updates/default-tariff-cap-level-1-april-2019-30-september-2019

macman

Switch away from SVT: problem solved.