Price hike

liz503

Hi coming off fixed term with Scottish Power end of August and have been informed of the new DD payment going from £110 a month to £330 a 200% rise can this be right. Thanks in advance for any advice Liz

What_time_is_it

Yes. Some people coming off fixed terms will see their bills triple or more.
This is a crisis. 

TheMilkmansDad

if anything, i would expect it to be larger. Assuming your going from fixed to the capped variable rate? If so, then you can expect the DD to be closer to £450 in October.

EssexHebridean

Unfortunately the fix you have been on, whilst it will have saved you money, has also shielded you from the worst effects of the energy crisis so far. At this stage your key things to do IMO would be to start to work out where you can cut back on the energy you use (by far the best way of saving), check any further fixes your provider may suggest you take VERY carefully to see whether in fact they are worth having, and ensure that you submit regular meter readings (or check that those sent by any smart meters you may have are correct) on a monthly basis to make sure that no over-estimation is being made. 

Hopefully you have already stashed away the £150 council tax rebate from earlier in the year (assuming you were eligible for this) so that will help to buffer you a little initially, and remember that you will also have the £400 energy grant to come from October - but it is unquestionably time to re-do your household budget and ensure that you have the money ready for what is likely to be a sharp increase to the DD. 

pochase

TheMilkmansDad said:

if anything, i would expect it to be larger. Assuming your going from fixed to the capped variable rate? If so, then you can expect the DD to be closer to £450 in October.

Welcome to the forum @liz503

Completely agree @TheMilkmansDad , going from £110 to £330 sounds more like going to the April cap SVT. Also they will not take any DD increase based on assumption of what the new SVT might be. If you go from yesterdays 78% increase the £450 you see might be on the low side, this might be a scary £500 plus.

How much energy have you used in the last 12 months Liz? Than we can give you a better idea what you are looking at. 

Unfortunately the last reasonable open market tariff has been withdrawn this morning and been replaced with a much more expensive one.

liz503

pochase said:

TheMilkmansDad said:

if anything, i would expect it to be larger. Assuming your going from fixed to the capped variable rate? If so, then you can expect the DD to be closer to £450 in October.

Welcome to the forum @liz503

Completely agree @TheMilkmansDad , going from £110 to £330 sounds more like going to the April cap SVT. Also they will not take any DD increase based on assumption of what the new SVT might be. If you go from yesterdays 78% increase the £450 you see might be on the low side, this might be a scary £500 plus.

How much energy have you used in the last 12 months Liz? Than we can give you a better idea what you are looking at. 

Unfortunately the last reasonable open market tariff has been withdrawn this morning and been replaced with a much more expensive one.

So £330 would be capped for a year and variable would be £180 before October is added, just so unsure what to do for the best, got a smart meter for readings, guy from SP was talking abt some increase last year that I missed also? Thanks for replying 

Phlik

liz503 said:

pochase said:

TheMilkmansDad said:

if anything, i would expect it to be larger. Assuming your going from fixed to the capped variable rate? If so, then you can expect the DD to be closer to £450 in October.

Welcome to the forum @liz503

Completely agree @TheMilkmansDad , going from £110 to £330 sounds more like going to the April cap SVT. Also they will not take any DD increase based on assumption of what the new SVT might be. If you go from yesterdays 78% increase the £450 you see might be on the low side, this might be a scary £500 plus.

How much energy have you used in the last 12 months Liz? Than we can give you a better idea what you are looking at. 

Unfortunately the last reasonable open market tariff has been withdrawn this morning and been replaced with a much more expensive one.

So £330 would be capped for a year and variable would be £180 before October is added, just so unsure what to do for the best, got a smart meter for readings, guy from SP was talking abt some increase last year that I missed also? Thanks for replying 

There was a 10%ish rise last October, a 54% rise this April and it's looking like an 80%ish rise this October. If you've been on a fixed tariff and missed the first two then by the time the 3rd cap rise hits you'll be looking at around a 200% rise in total (give or take a little, depends on how good your fixed rate was)

Based on your £110pm that's £1320 per year on the fixed tariff, using the percentage rises at each cap change you'll be looking at around £3900 per year on the variable tariff after October. Obviously this is only going off your dd from your first post, I've no idea if you're paying to much or too little but it gives you an idea of the scale of the price changes and how it is going to affect everyone.

TheMilkmansDad

no, £330pm is capped until October. At which point the capped is reviewed and latest predictions will mean that DD increases to  at least £450/500pm. not sure where your £180 is coming from?

You missed last years increase because you were on a Fix so the Cap rate didn't effect you.

[Deleted User]

The rate that's giving you an estimate of £330 isn't capped for a year, but will rise again in October as the SVT rises again.

A fixed tariff will be considerably higher than the £330.

The only scenario that would get you a £180 monthly cost until October is (more than) halving your usage.

Remember also that NO DD is capped - only the actual rates can be capped.

pochase

liz503 said:

pochase said:

TheMilkmansDad said:

if anything, i would expect it to be larger. Assuming your going from fixed to the capped variable rate? If so, then you can expect the DD to be closer to £450 in October.

Welcome to the forum @liz503

Completely agree @TheMilkmansDad , going from £110 to £330 sounds more like going to the April cap SVT. Also they will not take any DD increase based on assumption of what the new SVT might be. If you go from yesterdays 78% increase the £450 you see might be on the low side, this might be a scary £500 plus.

How much energy have you used in the last 12 months Liz? Than we can give you a better idea what you are looking at. 

Unfortunately the last reasonable open market tariff has been withdrawn this morning and been replaced with a much more expensive one.

So £330 would be capped for a year and variable would be £180 before October is added, just so unsure what to do for the best, got a smart meter for readings, guy from SP was talking abt some increase last year that I missed also? Thanks for replying 

No £330 will be most likely up to October, thereafter £450 plus, most likely over £500.

You need to give your usage data before we can give a better assumption. 

jimjames

liz503 said:

pochase said:

TheMilkmansDad said:

if anything, i would expect it to be larger. Assuming your going from fixed to the capped variable rate? If so, then you can expect the DD to be closer to £450 in October.

Welcome to the forum @liz503

Completely agree @TheMilkmansDad , going from £110 to £330 sounds more like going to the April cap SVT. Also they will not take any DD increase based on assumption of what the new SVT might be. If you go from yesterdays 78% increase the £450 you see might be on the low side, this might be a scary £500 plus.

How much energy have you used in the last 12 months Liz? Than we can give you a better idea what you are looking at. 

Unfortunately the last reasonable open market tariff has been withdrawn this morning and been replaced with a much more expensive one.

So £330 would be capped for a year and variable would be £180 before October is added, just so unsure what to do for the best, got a smart meter for readings, guy from SP was talking abt some increase last year that I missed also? Thanks for replying 

No your DD is not capped for a year or any period. It's an estimate of how much you might use split out monthly. If you use more energy it will be more. Conversely if you use less it will be lower. The thing that is capped is the unit rate and standing charge. You need to check your actual usage in kWh from your bill to get an idea of costs which is converted into the DD amount.