What rates are you being offered by your provider at the moment?

Lee667

I think there's going to be some customers who fixed during a certain window that will pay less than the cap. 

It's going to be a blanket reduction for those on fixes. I.E if your fix is higher than the cap, no matter by how much then it'll be reduced down by the amounts above, and if it isn't then no reduction.

The energy companies aren't going to trawl through every customers tariff, its going to be a lot more crude and simple.

Obviously anyone who fixed late July onwards is probably going to benefit coming off their fixed, whilst some will pay less than the cap but it'll only be a small amount. 

northernstar007

Lee667 said:

I think there's going to be some customers who fixed during a certain window that will pay less than the cap. 

It's going to be a blanket reduction for those on fixes. I.E if your fix is higher than the cap, no matter by how much then it'll be reduced down by the amounts above, and if it isn't then no reduction.

The energy companies aren't going to trawl through every customers tariff, its going to be a lot more crude and simple.

Obviously anyone who fixed late July onwards is probably going to benefit coming off their fixed, whilst some will pay less than the cap but it'll only be a small amount. 

and i`m 1 of them at the end of your message, also been paying higher amounts since jan and also getting everyones bill at the end of it via my tax

Lee667

dazzapb said:

Interesting about fixes here. Slightly confusing at this point but my fix is just over the capped  rates of 34p elec. and 10p gas. Surely can’t go cheaper than capped rates. 

‘If you're on a fixed tariff at a higher rate caused by recent energy price rises, your unit prices will be reduced by 17p/kWh for electricity and 4.2p/kWh for gas’

Why not? There's still thousands of people on fixes paying a hell of a lot less so the companies are still taking a hit on them. 

A cap is just that, a maximum unit price, so that still means you can pay less it just means a company would lose money if they wanted to offer customers lower unit costs.

The energy companies are going to get the difference between the new cap and the wholesale price so they won't lose much from people on fixes that are lower. 

Telegraph_Sam

Does the cap apply to the overall spend, or to the unit prices regardless of whatever total these equate to? (or to both?!)
Those on fixed tariffs that are below the new capped prices need do nothing?

northernstar007

Telegraph_Sam said:

Does the cap apply to the overall spend, or to the unit prices regardless of whatever total these equate to? (or to both?!)
Those on fixed tariffs that are below the new capped prices need do nothing?

its not a all you can eat, its the  price per k/w thats fixed

Mstty

Lee667 said:

dazzapb said:

Interesting about fixes here. Slightly confusing at this point but my fix is just over the capped  rates of 34p elec. and 10p gas. Surely can’t go cheaper than capped rates. 

‘If you're on a fixed tariff at a higher rate caused by recent energy price rises, your unit prices will be reduced by 17p/kWh for electricity and 4.2p/kWh for gas’

Why not? There's still thousands of people on fixes paying a hell of a lot less so the companies are still taking a hit on them. 

A cap is just that, a maximum unit price, so that still means you can pay less it just means a company would lose money if they wanted to offer customers lower unit costs.

The energy companies are going to get the difference between the new cap and the wholesale price so they won't lose much from people on fixes that are lower. 

Suppliers do not release fixes without securing the energy at a lower price than they give to you as a fix and a healthier profit margin than the small 2% allowed on price capped tariffs.

So they don't take a hit they actually make more money this way.

Telegraph_Sam

That's the confusiing bit: If it's wildly held that the cap is £2 500 but in reality it's the unit prices that are controlled.

Spoonie_Turtle

Telegraph_Sam said:

That's the confusiing bit: If it's wildly held that the cap is £2 500 but in reality it's the unit prices that are controlled.

It's always been the case with the Ofgem energy price cap - it caps standing charges and unit rates, not overall bills.  Use more than the "typical use" they base it on and you'll pay more.  Use less, and you'll pay less.

stphnstevey

Currently on Fix Again 1 Year v10 till 12OCT22 at Electricity unit rate

19.82p per kWh, Electricity standing charge

15.62p per day, Gas unit rate 3.96p per kWh, Gas standing charge 17.63p per day.

There offering me Next Flex (Our flexible tariff, where prices can go up or down with the wholesale market)

Can someone explain what the new price cap means to me now please? Do I need to do anything? Should I switch early or stay on fix for long as possible?

Thanks

Telegraph_Sam

I'll be interested to hear the answer to that not least since it should clarify whether it is the overall 2.5 K spend OR the individual unit prices that are capped. In plain language not political-speak. "Typical use" strikes me as an example of the latter with umpteen different interpretations and wiggle room to spare.