1st April price change hacks

superkoopauk

Hi all.  With the large standard variable tariff (SVT) increase coming into play on the 1st April which will adversly affect so many people I thought it would be good to share some tips that could delay that increase.   

1) If you are on a SVT and apply to switch to another supplier up to 20 working days after the tariff change (i.e. by 1st May) then by Ofgem rules you should still be charged at the old rates until you switch.  So even if you are simply switching to another supplier's SVT you will gain.  This also gives you a little bit more time to hold out to see if a cheap fixed comes out that you can switch to instead

2) Similar logic applies to your fixed tariff if you are currently on one.  If that is expiring and you switch to another supplier within 20 working days after the expiry date you should be held on your current fixed rates until you switch rather than defaulting straight to the more expensive SVT.  Useful if there are still no cheaper fixes available at that point

3) If you have a traditional prepayment meter then try to build up as much credit as you can by topping up more than you use before the 1st April.  The reason is that for the new 1st April rates to take effect on your meter you need to top up post price change.  Therefore if you have built up enough credit you can delay this and the meter will count down at the old rates until you top up again

4) Check your meter reading on the 31st March.  If it is higher than the last estimate then submit it to ensure you are charged the excess usage at the old rates.  If it is lower then do nothing and post price change submit it and you might be credited at the new rates.  I admit this one is speculation on my part (depends on your suppliers billing system) but worth a go.

Bendo

Not entirely sure point 1 makes any sense. You will be charged the April cap, it's a variable tariff and it's varied, they can charge you whatever the current cost of that tariff is. It doesn't suddenly become a fixed tariff for 20 days.

Verdigris

Also, new suppliers aren't obliged to offer the SVT, under current rules, although thet is due to change, but not until after April 1st IIRC.

400ixl

Hasn't point 3 already been shown to not be correct. 

DiseasedBunny

Number 3 is a crock, by that logic I can put £1k on the meter and have cheap electric for 2 years? Hahaha

PennineAcute

Number 3 is correct.  Most key/card meters can hold up to £250.  However, just because you can does not mean that you should.  This hack may come to bite you on your backside later on.

[Deleted User]

Bendo said:

Not entirely sure point 1 makes any sense. You will be charged the April cap, it's a variable tariff and it's varied, they can charge you whatever the current cost of that tariff is. It doesn't suddenly become a fixed tariff for 20 days.

It is also technically wrong. Provided that the old supplier is notified via industry data flows that a switch has been initiated no later than the end of a FIXED contract date plus 20 days, then price protection applies until the transfer of supply goes through. It is worth noting though that some suppliers take no industry action during the 14 day ‘cooling off’ period so there is a risk that any price protection may time out. 

superkoopauk

Dolor said:

Bendo said:

Not entirely sure point 1 makes any sense. You will be charged the April cap, it's a variable tariff and it's varied, they can charge you whatever the current cost of that tariff is. It doesn't suddenly become a fixed tariff for 20 days.

It is also technically wrong. Provided that the old supplier is notified via industry data flows that a switch has been initiated no later than the end of a FIXED contract date plus 20 days, then price protection applies until the transfer of supply goes through. It is worth noting though that some suppliers take no industry action during the 14 day ‘cooling off’ period so there is a risk that any price protection may time out. 

I assure you point 1 is correct as per Ofgem standard licence condition 23.6

23.6 The licensee must treat the increase in the Charges for the Supply of Electricity and/or the Disadvantageous Unilateral Variation as ineffective and neither enforce nor take advantage of it where –

(a) no later than 20 Working Days after (but not including) the date on which the increase in the Charges for the Supply of Electricity and/or Disadvantageous Unilateral Variation has effect, the licensee receives Notice under the Retail Energy Code that another Electricity Supplier will begin to supply the Domestic Customer’s Domestic Premises within a reasonable period of time after the date on which that Notice has been given; and

(b) another Electricity Supplier begins to supply the Domestic Customer’s Domestic Premises within a reasonable period of time after the date on which the Notice referred to in sub-paragraph 23.6(a) is given;or

(c) where: (i) the conditions in sub-paragraphs 23.6(a) and (b) are met; and (ii) the Domestic Customer has paid any Outstanding Charges within 30 Working Days after the Domestic Customer receives Notice that the licensee intends to prevent the Domestic Customer’s Proposed Supplier Transfer; or

(d) where the Domestic Customer enters into a new Domestic Supply Contract with the licensee which comes into effect no later than 20 Working Days after (but not including) the date on which the increase in the Charges for the Supply of Electricity and/or Disadvantageous Unilateral Variation has effect

superkoopauk

PennineAcute said:

Number 3 is correct.  Most key/card meters can hold up to £250.  However, just because you can does not mean that you should.  This hack may come to bite you on your backside later on.

Of course you have to make sure you can afford the extra top ups to make this a viable option.  But providing you can do that I don't see how this can cause you trouble later on.

EssexHebridean

PennineAcute said:

Number 3 is correct.  Most key/card meters can hold up to £250.  However, just because you can does not mean that you should.  This hack may come to bite you on your backside later on.

If you were to always top your meter up to the max, and the topping up this time was simply part of your usual pattern, then I can’t see how that would be a problem - especially allowing that your average Jo/Joe public probably wouldn’t even know about the price thing. If you suddenly did it that way on March 30th, then reverted back to sticking on £30 a week or whatever though once that had run out, then there might be some questions asked? 

BobT36

EssexHebridean said:

PennineAcute said:

Number 3 is correct.  Most key/card meters can hold up to £250.  However, just because you can does not mean that you should.  This hack may come to bite you on your backside later on.

If you were to always top your meter up to the max, and the topping up this time was simply part of your usual pattern, then I can’t see how that would be a problem - especially allowing that your average Jo/Joe public probably wouldn’t even know about the price thing. If you suddenly did it that way on March 30th, then reverted back to sticking on £30 a week or whatever though once that had run out, then there might be some questions asked? 

Well what are they gonna ask? "Why are you buying energy while it's cheap, to cover you while it's expensive?".
Well, duh. Isn't that exactly what the suppliers are doing?