Energy price cap freeze on a fixed tariff

[Deleted User]

ElizaSue said:

Deleted_User said:

ElizaSue said:

Deleted_User said:

ElizaSue said:

deano2099 said:

ElizaSue said:

I'm in the same situation with EDF that has dual fuel exit fees of £300 (24 month fix).  I didn't envisage that the Government would freeze the energy cap.  I thought they would increase benefits for poorer households.  I have now gone from feeling reasonably comfortable that I could pay my energy bills to rather concerned that I'll be paying much more than if I had stayed on the variable rate.  If the energy cap is frozen, then for me the tables will have turned because I'll be losing out big time.

While that's fair, the crucial thing is that you "feel reasonably comfortable that you can pay your energy bills" - that doesn't change (unless they ditch the £400) as your price doesn't change. Are you now getting a worse deal compared to other people? Yes. But you can surely see that other people not on a fix could use exactly the same argument in reverse: that they'd have been paying much more than people in your position.

I'll reserve judgement on that comment as it seems like a criticism that I decided to take out a fixed contract.

Not a criticism, just a statement of fact.  You felt comfortable with a fix at that level until you discovered that now you might not be better off as you previously calculated.

Your judgement, based on the facts available to you at that time, is not in question.

Now the facts available have changed, you can make another decision, but it doesn't make your old decision wrong.

I didn't say my decision was wrong.  When I said I felt reasonably comfortable, I meant that I could just afford it.  Given that the fixed tariff is three times more than I was paying before, it's not ideal.  I'm not wealthy and could be doing with the money to pay for the increased cost of groceries, etc. but now I may be "punished" for being proactive.  However, I'll wait and see what happens tomorrow.

If you buy something in the supermarket, and then the next week when you go in it is on sale, do you also feel like you are being "punished"?

I mean, I get the sentiment that people feel the goalposts have been moved, but as layperson in the area of psychology it just seems a little like people are upset that someone else "wins" rather than them. 

While I can see your argument, in my view supermarket shopping is not comparable with paying for energy.  I am not a psychologist or a financial expert, but I am simply trying to do my best to live on a fixed income and MAY BE about to get a "slap in the face" from the Government.  I am not saying that other people should not benefit from the Government taking action, and it should not be a case of winners and losers, but I hope the Government will consider those of us who took out fixed contracts and may have to pay £300 to get out of them.  I'll wait and see what happens.

Whatever the arguments and opinions may be about how it's described, funded or categorised, I'd be massively disappointed if there wasn't a "free-to-the-consumer" option to get off fixed tariffs.

michaels

Tallulah9360 said:

All the talk about the cap freeze is for gas and electric combined. We have oil heating (no cap) and have fixed our electricity price. I can't even begin to work out whether we will be better or worse off with the fix if the cap is frozen. I hope they are going to give us a split of the new cap between the two so that I can work out whether the electricity fix is worthwhile or not. And of course they will just ignore heating oil costs as usual, which were 4 times 2020 prices last winter.

Current heating oil costs are about 8-9p per kwh.  Lower than even the proposed frozen cap let alone the current October cap of 15p - moaning whilst getting cheaper energy than everyone else is not a good look....

SteveCooper

If a customer requests to move from their fixed contract onto the soon to be announced (£2500) price capped SVT but stays with the same supplier will they be  subject to an exit fees or would that only apply if they actually moved to another supplier ?

or is the answer “ Dont know “ 🤷‍♂️

[Deleted User]

SteveCooper said:

If a customer requests to move from their fixed contract onto the soon to be announced (£2500) price capped SVT but stays with the same supplier will they be  subject to an exit fees or would that only apply if they actually moved to another supplier ?

or is the answer “ Dont know “ 🤷‍♂️

Don't know, depends on supplier and what exactly gets announced.  Some already state exit fees to be zero if you move to another tariff with the same supplier.

Inigo_Montoya

SteveCooper said:

If a customer requests to move from their fixed contract onto the soon to be announced (£2500) price capped SVT but stays with the same supplier will they be  subject to an exit fees or would that only apply if they actually moved to another supplier ?

or is the answer “ Dont know “ 🤷‍♂️

Answer is its supplier dependant e.g. in my case, British Gas, they only charge if I leave them

It may even be specific tariff dependant too but I suspect a given supplier will tend to use the same terms across tariffs

Just hoping they actually allow me back onto the SVR as I am not sure they are obliged to do so - maybe someone has an answer for that question

spot1034

Inigo_Montoya said:

SteveCooper said:

If a customer requests to move from their fixed contract onto the soon to be announced (£2500) price capped SVT but stays with the same supplier will they be  subject to an exit fees or would that only apply if they actually moved to another supplier ?

or is the answer “ Dont know “ 🤷‍♂️

Answer is its supplier dependant e.g. in my case, British Gas, they only charge if I leave them

Just hoping they actually allow me back onto the SVR as I am not sure they are obliged to do so - maybe someone has an answer for that question

I think you'll find that whatever the normal rules might be, this is an exceptional situation and the normal rules won't apply. 

foxmeister

Sounds like if you’ve signed up for a fixed deal during the past 6 months you’re fcked ….

sienew

foxmeister said:

Sounds like if you’ve signed up for a fixed deal during the past 6 months you’re fcked ….

No. They are removing exit fees if you move to the new government backed tariff.

Only those who paid above the April cap in the hopes of saving on the October cap will lose out but there was no chance the government would ever do anything for them. Hopefully most didn't significantly over pay.

michaels

sienew said:

foxmeister said:

Sounds like if you’ve signed up for a fixed deal during the past 6 months you’re fcked ….

No. They are removing exit fees if you move to the new government backed tariff.

Only those who paid above the April cap in the hopes of saving on the October cap will lose out but there was no chance the government would ever do anything for them. Hopefully most didn't significantly over pay.

Is that in writing somewhere?

CRISPIANNE3

Inigo_Montoya said:

SteveCooper said:

If a customer requests to move from their fixed contract onto the soon to be announced (£2500) price capped SVT but stays with the same supplier will they be  subject to an exit fees or would that only apply if they actually moved to another supplier ?

or is the answer “ Dont know “ 🤷‍♂️

Answer is its supplier dependant e.g. in my case, British Gas, they only charge if I leave them

It may even be specific tariff dependant too but I suspect a given supplier will tend to use the same terms across tariffs

Just hoping they actually allow me back onto the SVR as I am not sure they are obliged to do so - maybe someone has an answer for that question

I went  on a fix rate with BG in June and they allowed me today to go back on the SVR one with no penalty.