Scottish Power Flexi Tariffs

otb666

Hi my 2 year fix is ending and i was looking at SP Tariffs A lot of them have Flexi in the name and is showing 12% cheaper than SVT but they are not fixed I dont understand how the prices will be adjusted will they always be 12% cheaper for the whole period I cant get them on phone to ask and when i look at terms is just says will be adjusted inline with industry standards every quarter. Dont think i am going to risk it but dont want to miss out on 12% discount on SVT

Scot_39

Effectively from this post 

https://forums.moneysavingexpert.com/discussion/6464535/scottish-power-new-1-year-flexi-price-tariff-existing-customers-only

It seems only the wholseale pricing component is fixed, but other charges - such as Ofgem (govt) ploicy changes operate on a sort of pass though basis - they change - up or down - so does the component in the prices you are charged. 

So the prices could in fact go up if certain Ofgem charges increase, but not if wholesale rates go up - but I believe like a conventional fix - wont fall if wholesale rates fall.

And given the CI forecasts are for a c16% cap drop in Apr, c23% from current in July and a small increase for Q4 to 20% below current.

 

https://www.cornwall-insight.com/predictions-and-insights-into-the-default-tariff-cap/

if correct - like any old style fix - even at 12% discount given forecast drops - you could end up paying more next winter than SVT

Theres a brief summary on it here too - amongst others available - dated yesterday - but the version there also has it linked to boiler plan. Unless you look at their Cancer flexci special.

Note it's in the more complex section

https://www.moneysavingexpert.com/utilities/-are-there-any-cheap--fixed-energy-deals-currently-worth-it--/

The MSE article suggests the variable components are a small part of the overall price - but doesn't on a quick scan quantiy the split.

There is one Ofgem cap tracker (the EOn pledge) that will stay c£50 below SVT cap - but still conventional fixes avaiable with a discount of upto 9-11% across a few suppliers - it's just as prices are expected to drop - at least currently - some who care more about prices than security - would not recommend them.

But the discounts on those fixes seem to at least be building in a decent discount - given a couple of heavy months use remains for many at the SVT rates if don't fix.

otb666

Thank you.  I think i will just go on SVT rate 1/3/24 then as I dont want a 12% discount for one month and then miss out on possible 16% reduction from 1/4/24.  I actually used to work in the industry and was struggling to understand it all so very grateful for your comprehensive explanation.
Personally i dont want to switch just for £50 a year saving.