Help! Very confused first time buyer

Emma_brown96

Hello! I’m very confused, so I’m hoping I can make this make sense. My partner and I just picked up the keys to our first home yesterday. The previous owners energy supplier was Eon, so I’ve created an account with them on their base variable plan to allow me to switch. I’ve checked my tarrif and I’m pretty sure it’s higher than the price cap- for gas we’re paying 7.48 per kWh with a standing charge of 27.22 per day, and for electric it’s 28.41 per kWh with a standing charge of 51.63 per day.  I thought the price cap meant that energy suppliers weren’t allowed to charge more than the cap?  Secondly, I’ve tried to look at switching to a different energy supplier that is using the price cap, but pretty much every website isn’t even letting me get a quote and doesn’t let me input my current details. As soon as I click to get a quote it just says that due to the current circumstances they’re unlikely to be able to give us a better deal so everyone’s better off sticking with what they currently have- but I don’t think I am. 

Apologies for the long winded explanation, we’re currently very confused and slightly stressed and any explanation/advice that anyone could give we would be very grateful for!

BUFF

the SVT tariffs do vary on a regional basis - what you probably see quoted in media is usually an indicative value i.e. there will be lower & higher values depending upon where you live.
Just remember that it is a standing charge/unit rate cap & not an absolute amount cap. i.e. if you use more of those units then you will have to pay more .

Is E.on offering you any other options? The only other one that I can think of would be Green Energy UK's Sparkling fixed rate tariff but that has it's own caveats. & iirc you won't be able to move from your new householder account with the incumbent supplier for something like 21 days.

victor2

At least you've registered with the current supplier. It doesn't sound like you've opted for a fix, so you should be on their standard variable tariff, which is indeed capped. But the cap means there is a limit on what the annual cost will be for a "typical" user. If you use more than that, you'll pay more, use less and you'll pay less.

Do make sure they've got your opening meter readings from when you got the keys. Photograph the meters with readings if you can.

It is very difficult to switch at the moment and you'll be guessing at what your annual usage is likely to be. Many suppliers will not take new customers, although geuk are offering relatively attractive fixes at the moment. Still going to be more than the standard tariff though. As a green energy supplier, geuk are not subject to the Ofgem cap on their standard tariff, so a bit of planning ahead is required if you go that way.

The new cap should be announced in August to take effect from October. Large increases are expected, and it seems possible that the 6 monthly review of the cap could become more frequent.

focusonskill

Your quoted price is in line with the current price cap. 
I believe currently only EDF and Octopus Energy will take new customers on standard tariff. Others will consider a switch if you take on a much more expensive fix with them.

Alnat1

Congratulations on your new home Emma. 

That does appear to be a SVT (capped) tariff so you won't be able to switch to anything cheaper. A good thing to do right now is to get "winter ready" and find out the best way to heat your house and hot water as efficiently as possible. Also think of ways to keep it warmer, like if you're buying new curtains get thick or lined ones, check loft insulation if that's relevant to your property etc.

People on here are happy to share tips about the best way to use your central heating system.

pochase

In addition to the good information provided above.

- You are on the capped SVT, any differences, if any at all, will be minimal. All suppliers are charging the maximum allowed by the cap. 
- It does not make a lot of sense to change to another supplier for the same capped SVT. There are potentially only two suppliers - EDF and Octopus - that might accept you on SVT, you will need to call them, possibly repeatedly to do so.
- The current SVT will increase in October by a predicted 65% in average. Current predicted rates are 14.17p and 43.94p with standing charges staying the same.
- Green Energy UK is the only open market fix worth looking at. You will need to pay the much higher unit rates immediately and not only from 1st of October.

[Deleted User]

Hi,

remember there's 5% vat, maybe not included in both prices.

pochase

The rates are calculated directly from the Cornwall Insights prediction by @QrizB.

Even so they don't mention VAT in the predictions, if it is not included we would be talking about an additional 5% or £160 plus, bringing the new cap to £3400. I hope that this is not the case!

So I doubt it is excluding VAT, also Ofgem cap is including VAT and Cornwall Insights compares directly to the old cap.