Standard Variable Tariff, hardly anyone is offering it.

kaMelo

The current price cap is set below cost price for energy companies, essentially it's like selling ten pound notes for eight pounds. With that in mind I've noticed that hardly any supplier is actually offering their SVR tariff to new customers, only fixed which are in excess of the price cap.
I get that anyone could move to their current suppliers SVR, I also get that those who have been moved under the SoLR process will be placed upon tariffs at or around the price cap so in theory no one needs to be paying more than the price cap but you need to stay with your current supplier to do so.

I was just wondering if that was allowed under the current rules, to not offer the SVR to new customers?
It changes the  "switch and save" mantra to one of "switch and pay more".

QrizB

There is no obligation on suppliers to offer any particular tariff to new customers.

The only obligation id that, where existing customers come to the end of their existing contract without choosing a new deal, they are put on a tariff that does not exceed the cap and with no exit fees.

Ultrasonic

kaMelo said:

I get that anyone could move to their current suppliers SVR,

Is that definitely the case, or would it be up to the provider to decide whether to allow a customer to do so?

The price cap is causing huge issues right now. I don't know if there is any scope for it to be increased by more than is currently planned for October, or again before the next planned review/rise, but there seems to be a growing argument for this being necessary.

masonic

Ultrasonic said:

kaMelo said:

I get that anyone could move to their current suppliers SVR,

Is that definitely the case, or would it be up to the provider to decide whether to allow a customer to do so?

There aren't really any viable alternatives - put them on a fixed tariff without their consent (not permitted), or cut off their supply.

Ultrasonic

masonic said:

Ultrasonic said:

kaMelo said:

I get that anyone could move to their current suppliers SVR,

Is that definitely the case, or would it be up to the provider to decide whether to allow a customer to do so?

There aren't really any viable alternatives - put them on a fixed tariff without their consent (not permitted), or cut off their supply.

I was referring to someone mid-contract on a fix of being able to opt to switch to the same providers SVR, which I believe is what I quoted was referring to?

kaMelo

QrizB said:

There is no obligation on suppliers to offer any particular tariff to new customers.

The only obligation id that, where existing customers come to the end of their existing contract without choosing a new deal, they are put on a tariff that does not exceed the cap and with no exit fees.

I get that but is that really the only obligation on suppliers? Probably no one foresaw the current situation whereby the capped tariffs, which most people thought would be the suppliers most expensive, are actually the cheapest. With that in mind I assume no one foresaw the need to impose a requirement that the suppliers offered the SVR to new customers.  

Still, there is no reason for anyone to pay in excess of the price cap, it just exposes how mixed up things are at the moment.

masonic

Ultrasonic said:

masonic said:

Ultrasonic said:

kaMelo said:

I get that anyone could move to their current suppliers SVR,

Is that definitely the case, or would it be up to the provider to decide whether to allow a customer to do so?

There aren't really any viable alternatives - put them on a fixed tariff without their consent (not permitted), or cut off their supply.

I was referring to someone mid-contract on a fix of being able to opt to switch to the same providers SVR, which I believe is what I quoted was referring to?

I think kaMelo was referring to moving onto the SVR at the end of the fixed term. Suppliers are entitled not to allow someone to change tariff mid-contract, other than to leave for a new supplier.

masonic

kaMelo said:

QrizB said:

There is no obligation on suppliers to offer any particular tariff to new customers.

The only obligation id that, where existing customers come to the end of their existing contract without choosing a new deal, they are put on a tariff that does not exceed the cap and with no exit fees.

I get that but is that really the only obligation on suppliers? Probably no one foresaw the current situation whereby the capped tariffs, which most people thought would be the suppliers most expensive, are actually the cheapest. With that in mind I assume no one foresaw the need to impose a requirement that the suppliers offered the SVR to new customers.  

Still, there is no reason for anyone to pay in excess of the price cap, it just exposes how mixed up things are at the moment.

The price cap was never intended to force energy suppliers to sell energy at a loss. Regulating consumer prices in an unregulated wholesale market was a recipe for disaster.

kaMelo

masonic said:

kaMelo said:

QrizB said:

There is no obligation on suppliers to offer any particular tariff to new customers.

The only obligation id that, where existing customers come to the end of their existing contract without choosing a new deal, they are put on a tariff that does not exceed the cap and with no exit fees.

I get that but is that really the only obligation on suppliers? Probably no one foresaw the current situation whereby the capped tariffs, which most people thought would be the suppliers most expensive, are actually the cheapest. With that in mind I assume no one foresaw the need to impose a requirement that the suppliers offered the SVR to new customers.  

Still, there is no reason for anyone to pay in excess of the price cap, it just exposes how mixed up things are at the moment.

The price cap was never intended to force energy suppliers to sell energy at a loss. Regulating consumer prices in an unregulated wholesale market was a recipe for disaster.

On that point I couldn't agree more.

Streaky_Bacon

kaMelo said:

Still, there is no reason for anyone to pay in excess of the price cap, it just exposes how mixed up things are at the moment.

Isn't it the case that an existing customer who is on a variable tariff (but not a SVR) could find their supplier raises the tariff above the price cap, and could also be unable to switch to a tariff that is price cap protected?

masonic

Streaky_Bacon said:

kaMelo said:

Still, there is no reason for anyone to pay in excess of the price cap, it just exposes how mixed up things are at the moment.

Isn't it the case that an existing customer who is on a variable tariff (but not a SVR) could find their supplier raises the tariff above the price cap, and could also be unable to switch to a tariff that is price cap protected?

If you are on a variable tariff other than the supplier's default tariff, then yes I think you could be at risk. There are still cheap fixes available, so those could currently provide a route to a protected tariff (whether the supplier survives or not).