I Don’t understand this price cap-help please

cerephin

I am sorry if I am missing the point but I ( I’m my ignorance) thought a price cap meant.. that was the highest you may charge.  Now my fixed price tariff ends in 2 weeks so I have to choose a new one, EON are offering Next Online v14 which charges Elec unit 39.59 kWh/standin
charge 37.92  
Gas unit 9.86kWh/ standing charge27.23
But the price cap elec unit rate is 28.34kWh so why is mine higher? 

I am obviously being completely stupid but I don’t understand.
all the prices are higher than cap except the standing gas which is the same. Please can someone explain I’m muddled 🤷🏼‍♀️

FreeBear

Questions about energy should be posted over on https://forums.moneysavingexpert.com/categories/energy - But expect to get roasted for your misconceptions.

The OFGEM prices cap is not a cap on total bills. It is based on average consumption and how much that average user would expect to pay per unit & standing charge, The price cap is not an "all you can eat" limit.

If you chose a fixed rate tariff, the price you pay will depend very much on how much energy you consume. If you reject the fixed tariff (which you should do), the capped Standard Variable Rate kicks in - You will pay less per unit, but still have to pay a variable amount based on your consumption. And you do not have to accept the offered fixed rate tariff.

ariarnia

cerephin said:

I am sorry if I am missing the point but I ( I’m my ignorance) thought a price cap meant.. that was the highest you may charge.  Now my fixed price tariff ends in 2 weeks so I have to choose a new one, EON are offering Next Online v14 which charges Elec unit 39.59 kWh/standin
charge 37.92  
Gas unit 9.86kWh/ standing charge27.23
But the price cap elec unit rate is 28.34kWh so why is mine higher? 

I am obviously being completely stupid but I don’t understand.
all the prices are higher than cap except the standing gas which is the same. Please can someone explain I’m muddled 🤷🏼‍♀️

you are right that it's the rate that's capped but its the daily standing rate and the per unit rate together not a fixed cap for each. that offer looks like a lower daily charge but higher unit rate. others might have lower unit rate but higher daily charge.