Energy price cap freeze on a fixed tariff

spot1034

MWT said:

Important addition...

What does it mean?

alsa1

My fix with Scottish Power had an exit fee which the welcome pack stated would be payable even if I change to another SP tarriff, the operator confirmed just now there will be no fees for moving to the standard variable so it seems accurate that exit fees are being waived. 

michaels

bristolleedsfan said:

IMPORTANT FIXED TARIFF INFO: I'm hearing fixed tariffs will have the same unit rate reduction as variable tariffs (ie roughly 30% off). So it looks like, unless you fixed at over the new Oct price cap level, your fix will be cheaper than moving to variable. More to check on this

https://twitter.com/MartinSLewis/status/1567867158201339904

This almost sounds like there will be a per unit reduction to bring the offgem rate down to the freeze rate and that the same per unit reduction will be applied to fixes.  When the offgem rates goes to 70p/18p in January that means some fixes could easily go negative....

bristolleedsfan

michaels said:

bristolleedsfan said:

IMPORTANT FIXED TARIFF INFO: I'm hearing fixed tariffs will have the same unit rate reduction as variable tariffs (ie roughly 30% off). So it looks like, unless you fixed at over the new Oct price cap level, your fix will be cheaper than moving to variable. More to check on this

https://twitter.com/MartinSLewis/status/1567867158201339904

This almost sounds like there will be a per unit reduction to bring the offgem rate down to the freeze rate and that the same per unit reduction will be applied to fixes.  When the offgem rates goes to 70p/18p in January that means some fixes could easily go negative....

https://twitter.com/MartinSLewis/status/1567868591470526466

Just to clarify this is the same per pound reduction not the same percent reduction.

[Deleted User]

michaels said:

bristolleedsfan said:

IMPORTANT FIXED TARIFF INFO: I'm hearing fixed tariffs will have the same unit rate reduction as variable tariffs (ie roughly 30% off). So it looks like, unless you fixed at over the new Oct price cap level, your fix will be cheaper than moving to variable. More to check on this

https://twitter.com/MartinSLewis/status/1567867158201339904

This almost sounds like there will be a per unit reduction to bring the offgem rate down to the freeze rate and that the same per unit reduction will be applied to fixes.  When the offgem rates goes to 70p/18p in January that means some fixes could easily go negative....

That can easily be avoided by deciding not to put the OFGEM cap up in January, as nobody would be on it anyway.

MuckChucker

Yeah I was mindful of this potential but my fix rate was above the October (but not the Jan 23 prediction) rate so I'm at no loss to immediately go SVT

DAVEMCFC

MWT said:

Important addition...

Don't understand this at all. Pity there is no TV special on ITV, to explain it in plain english.

michaels

Rather than communicating to Martin it would be great if the govt just published their plan - or even just gave a date and time for when they will publish it....

...it almost feels like Martin is chatting to someone in the department going what about this or that situation and they are making things up on the fly....

spot1034

Why on earth couldn't a full document be released as the PM was giving her statement, similar to what happens with the Budget? You don't expect every detail to be in a speech but the information should be available immediately so that it can be studied by those who are looking for specific facts.

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spot1034 said:

MWT said:

Important addition...

What does it mean?

I'm guessing that if the difference between Oct SVT and the new capped SVT electric unit rate is, purely as an example, 20p, they'll knock 20p off your fixed rate unit prices.