Energy price cap freeze on a fixed tariff

sienew

michaels said:

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?

By Martin Lewis on this website and twitter:

https://twitter.com/MartinSLewis/status/1567831094740881410

Given ML's source is the Secretary of State for Business directly it is highly likely to be accurate

MWT

michaels said:

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?

That part requires the cooperation of the suppliers as it is a variation to the contracts, one would assume they have already reached agreement on the point, so we should expect to be seeing announcements from our suppliers shortly...

Molech

"Those on fixes, can either stay on them, or can leave and switch to the new state subsidised tariffs with no exit penalties."

In that case I will hold off switching until Oct 1st when the state tariff starts.

gregbed

I fixed on 25th August 2022 with Eonnext 1year but it doesn't take effect until October when my current fix ends. The fix price is Electric 68.49 p/kWh 37.92 p/day and Gas16.83 p/kWh 27.22 p/day.

Am I better off going back to the Standard variable rate now?

The_Green_Hornet

michaels said:

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?

Nothing has been officially published as of yet.

[Deleted User]

gregbed said:

I fixed on 25th August 2022 with Eonnext 1year but it doesn't take effect until October when my current fix ends. The fix price is Electric 68.49 p/kWh 37.92 p/day and Gas16.83 p/kWh 27.22 p/day.

Am I better off going back to the Standard variable rate now?

We don't know yet, but guesses for the new unit rates are 9-11p gas and 34-37p for electricity depending on how all the changes are balanced in the background.

sienew

The_Green_Hornet said:

michaels said:

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?

Nothing has been officially published as of yet.

Given it was specifically said to Martin Lewis by the Secretary of State for Business and energy suppliers seem to be briefing this to other news outlets it seems highly likely to be the case.

The suppliers will actually make more money if most people on switches go to the SVT so it always made sense that they would allow this.

michaels

sienew said:

michaels said:

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?

By Martin Lewis on this website and twitter:

https://twitter.com/MartinSLewis/status/1567831094740881410

Given ML's source is the Secretary of State for Business directly it is highly likely to be accurate

Thank you

london21

Hopefully a solution can be reached.

This makes me think about the interest rates those on fixed and variable.

Sometimes you win, sometimes you lose, hard to get it perfectly sometimes.

MuckChucker

CRISPIANNE3 said:

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.

I went on a fix with BG about 6 weeks ago (finally gave up on government intervention and the Jan '23 predictions were downright scary!) but yeah, just had a quick exchange on the chat (started at 140 in the queue, busy day for them) and I'm now back on SVT. I even asked for confirmation about exit fee and they said it doesn't apply.