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Npower becomes third big six supplier to hike bills after Ofgem's price cap rise - MSE News
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Former_MSE_Naomi
Posts: 519 Forumite
in Energy
Npower has become the third big six supplier to increase its energy prices to the maximum allowed under the new cap on standard variable tariffs - hitting customers with an average 10.3% price rise from 1 April...
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'Npower becomes third big six supplier to hike bills after Ofgem's price cap rise'
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'Npower becomes third big six supplier to hike bills after Ofgem's price cap rise'
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Energy cartel0
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They have increased the price of the Standard Variable Tariff to match its new cap.
That is always going to happen as the cap is designed only for the default or Standard Variable Tariff. If the cap goes up, then the default tariff will. Should it ever go down, then it will go down to the new cap level set.
The majority of the companies will ensure that they always match the cap price for their default tariff.0 -
And if the cap doesn't go up as much as their buy price does (as it has this time) then the "fixes" will have to go up that much more to keep their profit margins. Give it a couple of years and there will be no fixes other than keeping you on the capped price for a full year.0
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BBC .... "Ofgem's energy price cap, which came into effect from 1 January 2019, helped drive down inflation, the ONS said. However, that cap is being raised and this is likely to feed into future CPI figures"
Surely the cap is not that important, surely most people are on a fixed deal.0 -
No, it is estimated that 70% of people are on standard variable tariffs or prepayment meters. (The cap covers both)
For example Bulb has 1 million accounts and only has 1 variable tariff. Although it is priced below the cap to be fair.0 -
No, it is estimated that 70% of people are on standard variable tariffs or prepayment meters. (The cap covers both)
For example Bulb has 1 million accounts and only has 1 variable tariff. Although it is priced below the cap to be fair.
Ofgem figures show that as of September the majority of customers – around 57 per cent of those with the 10 largest suppliers – were still on poor-value SVTs, around 13 million customers.
https://www.independent.co.uk/news/business/news/uk-households-energy-standard-variable-tariff-svts-know-gas-electricity-bills-cost-a8139916.html0 -
So 13% on prepayment isn't a bad figure to add to the 57%.
Of course that article talks about SVT ignoring prepayment (or doesn't mention if it is in the figure) but quotes Bulb about how bad people are at understanding energy tariffs. That firm only has 1 tariff however. I wonder if the 57% counts Bulb customers who are on a default tariff although it isn't priced as high as other providers default tariffs?0
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