Energy Price cap

PaulDesmond

Sorry but it is difficult to find the forum you want. This seems to be the closest match.

I am coming up to the end of my tariff. I asked what the latest tariff was and I was sent a text message. Sainsburys 1 Year Smooth renew.
Electricity (inc vat) Unit 51.86p & Standing 48.91p.  Gas (inc vat) Unit 13.21p & Standing 27.22p

This is far higher than the Last price cap which on this website is
Electric 28.34p & Standing 45.34p. Gas (inc vat) Unit 7.37p & Standing 27.22p

pochase

Reason is that the price cap quoted is the April 2022 price cap, going up in October by predicted 70% overall with further increases predicted in January and April 2023.

Also a fixed tariff is not price capped. If a supplier want to charge 70p per KWh and finds a customer who agrees to it on a fixed tariff that does not fall under Ofgem regulations.

Regarding the prices for the fix you posted we are currently expecting 14.5p for gas and 45.6p for electricity from October.

PaulDesmond

That is what they are doing to me. They are charging these October prices now. And as you say Fixed tariffs are not subject to capped. Who in their right mind would want a variable tariff at this time?

PaulDesmond

My yearly costs is going up from £836 to £2,350 which is an increase of 181%. Admittedly. I ignored the advice of Captain Lewis and switched from Utility Point as soon as it went bust. I did not leave it to the regulator as advised, so I didn't have the first price hike. My energy bill only went up by £25 a year. for this last year.

pochase

180% increase sounds about right if you are coming of an average fixed tariff. SVT will go up from £1277 to predicted £3358 in October, that is 163% increase and your fixed was probably below October cap.

What do you mean they are charging October prices now? You are saying you are still on the fixed tariff.

If you mean their fixed tariffs are on the level or higher than the predicted October cap you are correct. If you want to fix now you will immediately start to pay the higher rates, if you are lucky your current supplier will allow you to stay on your current fix until it ends.

. Who in their right mind would want a variable tariff at this time?

Everybody who is not offered a fixed tariff that has a chance of being cheaper than the SVT for the next 12 months.

PaulDesmond

I am seeing on this website that as of April the price is capped at  £1,971/year. This is for the untit prices 
Gas 7.37p per kWh Standing charge: 27.22p per day
Electric Unit rate: 28.34p per kWh Standing charge: 45.34p per day

Surly this should be based on Kwh for gas and electricity. Can't find those figures here.

[Deleted User]

The price isn't capped at £1971, or any other figure. It's the rate which is capped - what you pay is based on your own usage.

The total costs figures you see are based on the mythical average user, using 12000kwh gas and 2900 kWh electricity a year.

Alnat1

If you take the offered fix now you are protected from the price changes that will affect the capped (SVT) rate in Oct, Jan and Apr. It's quite likely that by the Jan change, kWh prices will be well above the offer you have posted.

You will pay a little bit more now in order to save in the future.

pochase

I hope that you took the tariff offered and are now in the cool off period, but have the rates bagged.

The prices offered are now below the predicted October cap and way below January after the latest prediction on Monday.

If you have not taken the fix check if it is still available, but I would be very surprised if that is the case.



In todays volatile markets you cannot think for days if a tariff is worth it. Bag it, and than start thinking, and if you don't like it use the cool off and get rid off it.

jimjames

PaulDesmond said:

 Who in their right mind would want a variable tariff at this time?

You could also reverse that. Who would want to take out a fix for 51p per kWh when you get the capped rate at 29p?

PaulDesmond said:

I am seeing on this website that as of April the price is capped at  £1,971/year. This is for the untit prices 
Gas 7.37p per kWh Standing charge: 27.22p per day
Electric Unit rate: 28.34p per kWh Standing charge: 45.34p per day

Surly this should be based on Kwh for gas and electricity. Can't find those figures here.

Those kWh figures for the rates are exactly what you have quoted. I'm not sure what you are looking for, can you explain more?

ZolaBuddy

It's a gamble of course, but I don't see SVT rates falling for perhaps another 4 quarters. In fact Cornwall Insight forecasts Price Cap increases well into the second half of 2023 and I doubt we will see massive falls in unit price rates (if any) should energy prices peak. Therefore grab any fix offered now because no doubt they will rise even further into 2023