New Energy Price Cap

[Deleted User]

Ialwaysgetdone said:

EssexHebridean said:

Ialwaysgetdone said:

Hi, I'm on standard rate because it's cheaper than a fixed rate for me. Should I put my meter readings in before July 1st 2023 or after that date, i.e. is the price going up or down? I can't keep up with it all  Thanks in advance.

Not sure why you are asking about  prices going up on down impacting on when you input the readings though. 

It was just that last year or was it the year before, I can't remember exactly but Martin Lewis advised us to enter their meter readings before the date that the energy prices were going to rocket (can't remember if it was end of April or October or both) otherwise you would be charged for all your energy used since the previous bill at the new higher rate rather than at the old rate. So as July 1st is the date when the prices are changing again, I wasn't sure whether to read it before or after that date. If the price is dropping then I assume it would be best not to do it before that date and if it's going up then it would be best to do it before the date. I won't get an estimate on July 1st because the bill is every 3 months and not due yet. I can enter readings at any time though and get an instant bill from the previous reading to the most recent. 

There is already a thread on this. The supplier changes your tariff at midnight on the 30th June. If you provide a meter reading late on the 30th the supplier will more than likely accept this as a change of tariff reading. If say, you then used 2kWh of electricity from the time that you gave the reading through until midnight then you will have saved the magnificent sum of:

      2 x (Old Unit Price - New Unit Price) which in capped terms = 2(33.21- 30.11) or 6.2p. 

elcordobes

I have just received a renewal plan from OVO for my expiring fixed rate (August). Both the fixed and standard quotes are higher than the capped rates from July set by Ofgen. I have asked for an explanation from OVO but no sensible response. If I do nothing I will be transferred to their SVR. I am assuming that even though this is higher than the Capped rate from July they will charge me the capped rates. (any comments)
Given the expectation that the cap will go down in October it would seem sensible to go on the capped SVR. However in the quote OVO do not mention the cap. They do state the fix will cost £285 a month and SVT £323 based on the tarifs quoted for each plan. If the cap is applied to the SVT the cost would be almost identical to the fixed plan. The temptation is to take the cheaper fixed plan and the presentation pushes you that way. However if the cap goes down in Oct then the reduction will be of no benefit as the plan is fixed. (  OVO will certainly have their contracts in place and be in a position to expect the direction of the capi
Looking at the Ofgen web site in describing the cap from July and the rates there is no mention of regional rates or averages re KWH which are mentioned in Martins article and Martins rates are slightly different. Why is this.
In looking at the OVO quotes I have used the Ofgen figures.

CSI_Yorkshire

You're reading the wrong bit of the ofgem website and, therefore, probably using the wrong ofgem figures and perhaps you are even incorrect in asserting that the OVO quote is higher than the cap.

I assure you, there are regional rates.

double_dutchy

CSI_Yorkshire said:

I assure you, there are regional rates.

Yes there are. If you look at this MSE link

Energy Price Cap calculator - MoneySavingExpert

....and click on the "prices vary by region......1st July to 30 September" part you can see the Ofgem price cap for your region

PeterGr

Or refer to the table on page 25 of this document,,,,,, https://researchbriefings.files.parliament.uk/documents/CBP-9714/CBP-9714.pdf

elcordobes

Thanks for the correction on the regional rates. However although the tarifs quoted for the fixed elect is slightly below the cap the gas is 1.29p more and both SRT are much higher so I still have the questions in my original post

double_dutchy

elcordobes said:

Thanks for the correction on the regional rates. However although the tarifs quoted for the fixed elect is slightly below the cap the gas is 1.29p more and both SRT are much higher so I still have the questions in my original post

Which region are you in and what rates are OVO quoting you exactly?

CSI_Yorkshire

That suggests to me that either they are quoting today's rates and then the price will change to the new rates on 1 July, or you're reading the wrong region.

As for "do OVO know something special about October's rates" - the answer is no.

elcordobes

I have the right region. You may be right but the letter was dated the 19/6 and my portal account still has the same offer.
The SRT for gas is 10.46 and the capped regional rate is 7.66.
The letter is heavily focussed on me taking out a new plan which would not look so attractive if the capped SRT rates were used.
I am surprised that you think they are not in a position to anticipate which way the cap is going to go in October given the size of their customer base and the contracts they must have in place.

QrizB

elcordobes said:

The SRT for gas is 10.46 and the capped regional rate is 7.66.

Today (and on the date of your letter) the EPG capped rate for gas is about 10.5p/kWh.

It will be falling to the Ofgem capped rate of about 7.5p/kWh from the 1st of July.

Regional variations apply in both cases.