Fix Offer - Advice

DE_612183

I know that I'm comparing a known ( fix offer ) with an unknown ( the April Cap ), but just wanted to validate my logic....

Current Price Cap = Gas - 4ppu, S/C 26ppd, Electricity - 21ppu, S/C 25ppd.

A 50% increase on those gives figures of 6ppu, 39ppd and 31.5ppu and 37ppd.

Andrea15

Do what I have done.
Get a quote with a random supplier who will be on the existing cap using your actual usage. See what your monthly payment comes at and use that as a benchmark. That is going to be much easier to deal with, as opposed to a gazillion of small numbers.

Flight3287462

Everyone is concentrating on the April cap, but you must also think ahead about the October cap which will probably add another 15-20%.  Even then the suppliers will probably still be stuggling.

bagand96

Might be worth reading this thread on the MSE forum: What should the unit prices be to cover wholesale prices? - Page 11 — MoneySavingExpert Forum

In particular one poster there has been doing some excellent work monitoring wholesale prices and predicting what the energy cap might need to become April.  Latest prediction at the bottom of page 11.  It assumes the Government don't step in with a package of measures, or Ofgem don't radically change their method of calculating the cap.

DE_612183

Thanks for all the feedback - one other question I have - will the % uplift affect the standing charges as well? I would have thought these weren't impacted ( as much ) as the rise in wholesale gas prices?

Andrea15

In my case they both go up. From a total of about 45p a day to 50p, but I don't know what the cause is.
From what I have seen they seem to vary from provider to provider (but not massively)

bagand96

Dave46049 said:

Thanks for all the feedback - one other question I have - will the % uplift affect the standing charges as well? I would have thought these weren't impacted ( as much ) as the rise in wholesale gas prices?

It is very likely they will go up. The current Ofgem cap is less than the wholesale rate of energy. So companies who've taken on customers from failed suppliers are currently supplying them at a loss. They will be able to claim their losses back from Ofgem but those costs will be passed on. 

PennineAcute

It is an unknown, but the increase will probably incresase the UP significantly, and the SC to a much lesser degree.  All April '20 CAP estimates I have seen seem to have the SC unchanged.