Price cap - have I misunderstood .... again ?!

iamnotasoldier

Hi - apologies if this has been covered by before. I had a look & couldn't see exactly what I need to ask. 

So - price cap - is that maximum you can be charged for the units/standing, even if you sign up for a fixed deal which charges more ? Are all the current fixed deals, which are all higher than the capped SV, just a safe guard for future rises, so you pay more in short term but come future caps, you gain ? 

Benny2020

Yes you have misunderstood.

MattMattMattUK

iamnotasoldier said:

Hi - apologies if this has been covered by before. I had a look & couldn't see exactly what I need to ask. 

So - price cap - is that maximum you can be charged for the units/standing, even if you sign up for a fixed deal which charges more ? Are all the current fixed deals, which are all higher than the capped SV, 

The price cap is the limit on the SVR, if you choose to sign up for a higher cost fixed rate deal (or tracker tariff) then that is on you.

iamnotasoldier said:

just a safe guard for future rises, so you pay more in short term but come future caps, you gain ? 

All the current fixes seem to be two years and they are all pretty much in line with where predictions for the October increase are, so you will pay roughly the same in October, whilst being on that high rate for two years. 

QrizB

iamnotasoldier said:

So - price cap - is that maximum you can be charged for the units/standing, even if you sign up for a fixed deal which charges more?

Only one tariff per supplier, the "deemed" or Standard Variable Tariff, is capped.

Every other tariff is uncapped. The supplier can set whatever unit rate or standing charge they choose, and you can choose to accept it or not.

iamnotasoldier

Cheers ! It seemed too good to be true that you could sign up for a fixed but only pay the cap until the cap rose then only pay the fixed rate you signed up for