Fixed Tariff Reduction

The_Fat_Controller

@brewerdave I think your view is too simplistic.

My tariff works out overall to be cheaper than moving to the EPG, however the unit rate for electricity within that tariff is above the EPG rate.

There must be many customers with EDF who fixed on one the versions of Fix Total Service May 24 who are in a similar situation.

If EDF use the "average user" figures then my tariff works out £46 cheaper than the much quoted £2500.

So, will they look at the overall cost and say it is already below £2500 or adjust the electricity rate down by 1.09p within the fix and save Mr/Mrs average a further £31.61, leaving the fix to run its course ?

brewerdave

The_Fat_Controller said:

@brewerdave I think your view is too simplistic.

My tariff works out overall to be cheaper than moving to the EPG, however the unit rate for electricity within that tariff is above the EPG rate.

There must be many customers with EDF who fixed on one the versions of Fix Total Service May 24 who are in a similar situation.

If EDF use the "average user" figures then my tariff works out £46 cheaper than the much quoted £2500.

So, will they look at the overall cost and say it is already below £2500 or adjust the electricity rate down by 1.09p within the fix and save Mr/Mrs average a further £31.61, leaving the fix to run its course ?

My "simplistic" reading of the stuff I've read ,was that the utility cos. would look at the total cost of the existing fix (s/c and p/kwh) and compare with the total cost of the same expected usage at the capped rates - so in your case I ASSUME that they would let the fix run but not adjust the p/kwh down further. Will wait with interest !!!
EDIT - Just looked at my BG electric tariff which runs til May 23 and compared with switching to EPG rates- the s/c is higher than the rate listed for the EPG whilst the p/kwh is lower but overall cost is very slightly better staying on fix.- not sure what they are going to do !

Ultrasonic

brewerdave said:

lisyloo said:

brewerdave said:

Point #2 is irrelevant if it is above the new EPG cap. The way it reads is that in such a position the customer's tariff will be automatically reduced to the cap with an end date of 30/9/24 - no customer choice.

No that’s not point 2.
point 2 is that there is an (admittedly small) chance that something could happen that changes the “guarantee”.
a new government was the first example that sprang to mind.

if you think there is zero possibility then by all means dismiss point 2.

after lockdown, Ukraine etc. I no longer believe in government “guarantees”
that’s not some wild conspiracy theory.
The lockdowns we had and the restrictions on our lives were previously unthinkable, so there is evidence that the unthinkable can happen.

if you think the guarantee is written in stone then dismiss point 2, but don’t mis-interpret it. It means currently unthinkable events that change the guarantee.

The way I read it, you won't have a choice to stay on the fix whether you want to or not-  if it is above the EPG  it won't exist after Oct. 1st, so if the "unthinkable" happens in the future....then join the rest of us!!

I don't think we've seen anything to suggest this, rather the unit prices people pay on their 'fixed' tariffs will be reduced. I fully expect and anticipate my existing 'fix' to remain in place until May 2024, most importantly for me with the standing charges staying as they currently are (below the EPG SCs).

lisyloo

brewerdave said:

lisyloo said:

brewerdave said:

Point #2 is irrelevant if it is above the new EPG cap. The way it reads is that in such a position the customer's tariff will be automatically reduced to the cap with an end date of 30/9/24 - no customer choice.

No that’s not point 2.
point 2 is that there is an (admittedly small) chance that something could happen that changes the “guarantee”.
a new government was the first example that sprang to mind.

if you think there is zero possibility then by all means dismiss point 2.

after lockdown, Ukraine etc. I no longer believe in government “guarantees”
that’s not some wild conspiracy theory.
The lockdowns we had and the restrictions on our lives were previously unthinkable, so there is evidence that the unthinkable can happen.

if you think the guarantee is written in stone then dismiss point 2, but don’t mis-interpret it. It means currently unthinkable events that change the guarantee.

The way I read it, you won't have a choice to stay on the fix whether you want to or not-  if it is above the EPG  it won't exist after Oct. 1st, so if the "unthinkable" happens in the future....then join the rest of us!!

That not the way I’ve understood the many posts I’ve read.

I’ve understood Fixes above EPG and fixes below EPG will continue, although those above will have a period of fee free exit option.

where have you seen that fixes won’t exist after oct 1st?

brewerdave

lisyloo said:

brewerdave said:

lisyloo said:

brewerdave said:

Point #2 is irrelevant if it is above the new EPG cap. The way it reads is that in such a position the customer's tariff will be automatically reduced to the cap with an end date of 30/9/24 - no customer choice.

No that’s not point 2.
point 2 is that there is an (admittedly small) chance that something could happen that changes the “guarantee”.
a new government was the first example that sprang to mind.

if you think there is zero possibility then by all means dismiss point 2.

after lockdown, Ukraine etc. I no longer believe in government “guarantees”
that’s not some wild conspiracy theory.
The lockdowns we had and the restrictions on our lives were previously unthinkable, so there is evidence that the unthinkable can happen.

if you think the guarantee is written in stone then dismiss point 2, but don’t mis-interpret it. It means currently unthinkable events that change the guarantee.

The way I read it, you won't have a choice to stay on the fix whether you want to or not-  if it is above the EPG  it won't exist after Oct. 1st, so if the "unthinkable" happens in the future....then join the rest of us!!

That not the way I’ve understood the many posts I’ve read.

I’ve understood Fixes above EPG and fixes below EPG will continue, although those above will have a period of fee free exit option.

where have you seen that fixes won’t exist after oct 1st?

I based on info. sent to me by BG -   Energy Price Cap Changes - UK Energy Bill Prices (britishgas.co.uk) Maybe my interpretation is wrong tho'. 

lisyloo

brewerdave said:

lisyloo said:

brewerdave said:

lisyloo said:

brewerdave said:

Point #2 is irrelevant if it is above the new EPG cap. The way it reads is that in such a position the customer's tariff will be automatically reduced to the cap with an end date of 30/9/24 - no customer choice.

No that’s not point 2.
point 2 is that there is an (admittedly small) chance that something could happen that changes the “guarantee”.
a new government was the first example that sprang to mind.

if you think there is zero possibility then by all means dismiss point 2.

after lockdown, Ukraine etc. I no longer believe in government “guarantees”
that’s not some wild conspiracy theory.
The lockdowns we had and the restrictions on our lives were previously unthinkable, so there is evidence that the unthinkable can happen.

if you think the guarantee is written in stone then dismiss point 2, but don’t mis-interpret it. It means currently unthinkable events that change the guarantee.

The way I read it, you won't have a choice to stay on the fix whether you want to or not-  if it is above the EPG  it won't exist after Oct. 1st, so if the "unthinkable" happens in the future....then join the rest of us!!

That not the way I’ve understood the many posts I’ve read.

I’ve understood Fixes above EPG and fixes below EPG will continue, although those above will have a period of fee free exit option.

where have you seen that fixes won’t exist after oct 1st?

I based on info. sent to me by BG -   Energy Price Cap Changes - UK Energy Bill Prices (britishgas.co.uk) Maybe my interpretation is wrong tho'. 

Thanks for the link.
my interpretation of that is
- if your fix is cheaper than the EPG then you keep your fix
- if after discount your fix is cheaper than the EPG (and it might be that standing charge is cheaper but unit rate the same) then you’ll keep your fix.

this covers about 99%

if you are in the 1% group who will pay more after reduction then BG will switch you automatically.
I am not aware of other suppliers doing that but many have said they will have an exit fee amnesty for a period of time.

I think it’s quite good that BT are doing that as there are inevitably some who won’t be on top of it.

Ultrasonic

brewerdave said:

lisyloo said:

brewerdave said:

lisyloo said:

brewerdave said:

Point #2 is irrelevant if it is above the new EPG cap. The way it reads is that in such a position the customer's tariff will be automatically reduced to the cap with an end date of 30/9/24 - no customer choice.

No that’s not point 2.
point 2 is that there is an (admittedly small) chance that something could happen that changes the “guarantee”.
a new government was the first example that sprang to mind.

if you think there is zero possibility then by all means dismiss point 2.

after lockdown, Ukraine etc. I no longer believe in government “guarantees”
that’s not some wild conspiracy theory.
The lockdowns we had and the restrictions on our lives were previously unthinkable, so there is evidence that the unthinkable can happen.

if you think the guarantee is written in stone then dismiss point 2, but don’t mis-interpret it. It means currently unthinkable events that change the guarantee.

The way I read it, you won't have a choice to stay on the fix whether you want to or not-  if it is above the EPG  it won't exist after Oct. 1st, so if the "unthinkable" happens in the future....then join the rest of us!!

That not the way I’ve understood the many posts I’ve read.

I’ve understood Fixes above EPG and fixes below EPG will continue, although those above will have a period of fee free exit option.

where have you seen that fixes won’t exist after oct 1st?

I based on info. sent to me by BG -   Energy Price Cap Changes - UK Energy Bill Prices (britishgas.co.uk) Maybe my interpretation is wrong tho'. 

I'll copy the relevant bit below. It reflects what I and others said above, with people only actually being taken off their fix if the maximum unit price reduction under the government scheme still leaves an individual paying above the EPG. This will be a fairly small minority of those on fixed tariffs.

Customers on our fixed-rate tariffs will also benefit from the Energy Price Guarantee

If you’re currently on one of our fixed-rate tariffs that are priced above the Energy Price Guarantee, we'll automatically discount your unit rates from 1st October. If the discount does not bring you in line with Energy Price Guarantee, we'll switch you automatically to our standard variable tariff to ensure you're on the best deal. We'll take care of everything and will be in touch over the next few weeks to confirm exactly what this means for you.

You can still switch to our standard variable tariff now without paying exit fees.

maisie_cat

Ultrasonic said:

Customers on our fixed-rate tariffs will also benefit from the Energy Price Guarantee

If you’re currently on one of our fixed-rate tariffs that are priced above the Energy Price Guarantee, we'll automatically discount your unit rates from 1st October. If the discount does not bring you in line with Energy Price Guarantee, we'll switch you automatically to our standard variable tariff to ensure you're on the best deal. We'll take care of everything and will be in touch over the next few weeks to confirm exactly what this means for you.

You can still switch to our standard variable tariff now without paying exit fees.

My fix is marginally above the EPG but as I do not trust the Government I wanted to stay on my fix.
If they effectively void the contract I wonder if I can get the extra £90 I've paid since May back? 

QrizB

maisie_cat said:

My fix is marginally above the EPG but as I do not trust the Government I wanted to stay on my fix.
If they effectively void the contract I wonder if I can get the extra £90 I've paid since May back? 

The quote by Ultrasonic says that if your fix is marginally above the EPG BG won't void your contact - they'll just discount the fix down to the EPG rates.

They will be voiding contracts where (in effect) the fix is above the October Ofgem cap and therefore the price would still be above the EPG rates even once the maximum discount has been applied.

mmmmikey

EDF have updated their website and the latest info is here:

https://www.edfenergy.com/latest-news-government-announcement

I read this to mean that they'll reduce the p/kWh rates on fixed tariffs by the 17p for electricity and whatever it is for gas down to a minumum of the SVR p/kWh rates for the region. And if for your tariff you're still more than the SVR rate you'll be able to change to SVR without charge. I can't see that they'll do anyhting with standing charges as that will just make life complicated.

Keep in mind this question only effects a (relatively) small amount of people and only by (relatively) small amounts so I can't imagine there's going to be huge exercise in working out a better way of doing it.