ScottishPower are offering me a fixed tariff below the new cap, what am I missing?

hollymcr

I'm with Scottish Power coming to the end of an existing fixed-rate (end March). They've offered me (via their website) a new fix until June 2023 at unit rates slightly below the April cap (and standing charge substantially lower). 

Martin's advice not to pick a fixed rate that's more than 40% above the cap makes sense. So I wasn't expecting an offer seemingly below the cap. What am I missing?

The rate they're quoting me is E:22.2p/day+26.11p/kWh, G:22.2p/day+7.36p/kWh, vs the cap (from Ofgem's website) at E:45.34p/day+28.34p/kWh, G:27.22p/day+7.37p/kWh (£40/fuel early exit)

The downside is that I lose 1 month at the much lower rate I'm on now but that's outweighed by the savings over the next 15 months at the new cap, never mind "if" it rises again in October.

I'm convinced I've missed something here.

QrizB

You're not missing anything. Scottish Power have been offering loyalty fixed rate deals that are below the April cap.

If I was in your position, I'd give serious consideration to taking them up on the offer.

mighty2022

Definitely not missing anything hollymcr. I am also with SP with my fixed deal due to come to end on 29/02 and was offered a 'Exclusive Offer' that was below the cap. I took up on it and protected until June 2023. Other customers have also reported similar offers from SP:

https://forums.moneysavingexpert.com/discussion/comment/78961778

https://forums.moneysavingexpert.com/discussion/6332334/exclusive-fixed-deal

lohr500

Given today's events in Ukraine I think I would snap up their offer before it is withdrawn if I was in your shoes. 
If prices do drop back down, then in the scale of things, the £40 per fuel early exit fee is not the end of the world. Particularly if you are a high user of gas or electricity.  

hollymcr

Thanks everyone. I took the offer.