energy caps

leekeen123

i have just signed up for british gas, loyalty july 23 deal. which offers.
gas  standing charge 24.206  and unit rate 11.248.   but price cap from 1/4 seems to be   27.22    and 7.37
elec   standing charge 32.165 and unit rate 39.601. but price cap from 1/4 seems to be 45.34  and 28.34.
my question is, i though provider could not exceed the price cap,   but above shows some over, some under.
is this right what they are doing please???  thank you.

Archie_Duke

I think that tariff is probably a fixed rate one, so the price cap doesn’t apply to it. You need to look at your actual usage past and future and decide whether you’d be better off going onto a SVR which is aligned to the April Ofgem cap (and the October increase when that comes.

pochase

Correct, leekeen123 said:

i have just signed up for british gas, loyalty july 23 deal. which offers.
gas  standing charge 24.206  and unit rate 11.248.   but price cap from 1/4 seems to be   27.22    and 7.37
elec   standing charge 32.165 and unit rate 39.601. but price cap from 1/4 seems to be 45.34  and 28.34.
my question is, i though provider could not exceed the price cap,   but above shows some over, some under.
is this right what they are doing please???  thank you.

The cap is only valid for the SVT (standard variable rate). You decided to take up an offer for a fixed rate that is not protected by the cap. They can charge you whatever they want as long as you agree to it, but they cannot change it until it ends.

The SVT is expected to go up by 51% in October, so depending on your usage the above fix might benefit you. You pay for 3 month higher rates than the current SVT, thereafter maybe lower rates.

leekeen123

thats perfect now i understand it.  i did not realise the cap was validated against the standard variable rate only. 
thank you very much.