Price Cap Q&A

  • Justme22's Avatar
    Level 1
    @theunknowntech


    Oh okay.....they are meters that EON had put in themselves when I first signed up to them.

    Still having the same issues with no readings on the screen unless you press the buttons they say to ( I thought the whole point of Smart Meters was to make it easier for everyone!) and you have to be real quick to get the readings as they go so quick lol ....oh how I wish sometimes things could be left alone if they work I miss my old style meter and was able to send my readings without any problems if they needed them. Anyway they still can't get my Gas meter readings for some reason,so i'm having to send them through. But I am in communication with someone and she has been a great help so hopefully down the line I will get it all sorted. Thank you for your kind offer to help again I will keep that in mind .
  • meldrewreborn's Avatar
    Level 91
    Hi everybody.

    You may have seen in the news that Cornwall Insight an energy consultancy, has predicted what the price cap will be this winter.

    They calculated £1485.89 for 2,900 kWh of electricity and £1877.81 for 12,000 kWh of gas.

    Assuming standing charges remain unchanged (they probably will not, but that's the assumption I have made) we're going to be looking at unit prices of electricity of circa 50p, and 16p for gas, inclusive of VAT.

    33p and 8p respectively are rough approximations of the prices under the current price cap , so the increases are likely to be considered unaffordable by many.

    But at least there's something to use in comparisons against any fix price offers that are out there.

    I wish it could be better news. OFGEM may make some tweaks to the system and Government may intervene, but headline prices at this level will shock almost everybody.

    Check out this link to Martin Lewis:
    Martin Lewis: Is it time to fix my energy bill or should I stick on the price cap? (moneysavingexpert.com)
    Last edited by meldrewreborn; 13-07-22 at 11:19. Reason: added link to Martin lewis
    Current Eon Next and EDF customer, ex Zog and Symbio. Don't think dual fuel saves money and don't like smart meters. Chronologically Gifted. If I offend let me know by private message, but I’ll continue to express my opinions nonetheless.
  • Beki's Avatar
    Good morning!

    I hope you are all managing to get out and enjoy some of the Summer sun we have had!

    I wondered if you had seen @HannahD_EONNext's post a couple of weeks back? We still want to hear from you!

    Want to get involved? Head over to this thread and pop us a DM!

    Sending positive energy to you,
    Beki
    E.ON Next Community Manager
  • Aliballibee's Avatar
    Level 1
    @Garyw23

    A number of houses are not suitable for cavity wall insulation, although it sounds like someone did a bodge job on yours. One way to insulate your house is to install a further layer of plasterboard insulation. It will slightly reduce room size but could help with heat loss in your home.
  • Maggiemay's Avatar
    Level 4
    Yea, I would like to know the answer this question
    "I thought you couldn't charge more than this, so why are you?"
    when it comes to ofgem price Cap.
    my Tariff is coming to an end .
    I don’t want to choice anymore of the Tariff your offering .
    so I would like your default one ?
    can you kindly please tell me what is your default one?
    I am on Next Flex Tariff which is coming to an end.
    Eon is asking me to choose another Tariff.
    of I don’t choose another Tariff what happens ?
    or is Next Flex your default Tariff?
    As I notice this renewal in choosing Next Flex is asking for £63 more !!
    then my normally Monthly direct debit!
  • theunknowntech's Avatar
    Level 78
    If you don't select a tariff, you'll be placed on the default one automatically. However, that may not be a wise move because from now on, each cap will only last three months rather than six - and any potential savings now will likely be destroyed in three months time. You'll likely be better off on a fixed rate deal.
    Just another guy passing by... The unknown tech way...
    Pete is an IHD Tariff Update Robot! 🤖 Anasa is a Giant Enemy Robot Spider 🕷 🤖 Hannah is neither! Need Customer service? click here! Replacement IHD Guide? Here it is!
  • Andy65's Avatar
    Level 43
    Yea, I would like to know the answer this question
    "I thought you couldn't charge more than this, so why are you?"
    when it comes to ofgem price Cap.
    my Tariff is coming to an end .
    I don’t want to choice anymore of the Tariff your offering .
    so I would like your default one ?
    can you kindly please tell me what is your default one?
    I am on Next Flex Tariff which is coming to an end.
    Eon is asking me to choose another Tariff.
    of I don’t choose another Tariff what happens ?
    or is Next Flex your default Tariff?
    As I notice this renewal in choosing Next Flex is asking for £63 more !!
    then my normally Monthly direct debit!

    Hi @Maggiemay

    When Ofgem quote the price cap it is an average, they do state this but we just look at the numbers and of course an average doesn't mean anything unless they quote the minimum and maximum. I think the price cap varies by location, there may be other factors involved but this is why what you're being quoted may be higher/lower, and of course the price cap is the the Standing Charge and price per kWh. What you are being quoted in £'s per month is also based upon your actual usage.
    Personally I think it's wrong for Ofgem to quote a price cap in £'s per year, usage is everything so it just gives customers the impression that their monthly payment should be above £x.

    The default tariff is the Next Flex, so if they've told you that your tariff is coming to an end, it's because you're on a fixed tariff, not Next Flex.
    If you don't choose a tariff you will automatically go on to the Next Flex, which is the variable tariff which is 'capped' by Ofgem for the Standing Charge and price per kWh. Be aware though that the Next Flex is likely to increase significantly (70%) in October because Ofgem are reviewing the price cap in a couple of weeks time.

    If you are being quoted £63 more per month then that doesn't surprise me at all, some have seen increases in £100s but as I said it depends on how much you use.

    If I haven't explained it very well or you have more questions then please post back and I or someone else will do our best to help.
  • JoeSoap's Avatar
    Level 91
    @Maggiemay

    Coming to the end of a fixed tariff right now (as I have recently done) means a very difficult decision has to be made. You will already have been protected from recent price rises, so, considering the predicted price rises that are coming (which are staggeringly high), any new fixed tariff is going to be frightening.

    The standard variable tariff looks good in comparison right now but may not when the prices rise. Trouble is, nobody can be certain what is going to happen.

    I feel your pain regarding the rise as when I fixed to a new tariff my monthly direct debit shot up by a factor of 2.65 times, which for me is an extra £333 per month. I wish I could say that was a typing error but it's not.

    Good luck with choosing.... it's a very difficult choice but currently there are no exit fees with the Eon Next tariffs (but check first for sure as things change) so that might help you decide.

    It's very difficult to get advice on what to do because nobody really knows what lies ahead.
  • Maggiemay's Avatar
    Level 4
    Thank you Individually for all your reply’s .
    does all make more sense now & for your understanding.
    it does say “ To Renew “ my Tariff.
    I don’t think I have been Savvy on the ball with it with Tariffs.
    so eon must of just been putting me on same Tariffs over the years I have been with them .

    i definitely can not afford the £300 Tariff one.
    Am single woman, children . Our adults now, left home . and I have 3 years to retirement age.
    not able to claim any benefits due to savings that take me over the benefit cap & am only working part time !
    No wonder I read that by Retirement age people won’t have any saving left .
    yeah energy prices Rising will go on my paying my gas electric.
    my saving is not even
    even that much over the benefit Cap.
    i suppose I could be great full that I have any savings at all !
    oh well I could buy My own generator, stick it in the garden.
    if my Social Housing landlord would give me the Permission.
    They do that in USA .
    Just a thought 💭!
    life is so short, so shall not worry about .
    shall try anyway .
    get in habit of being being Energy conscious.



    Electricity
    Next Flex
    29.63 p/kWh 32.14 p/day(All rates inc. VAT)


    Gas
    Next Flex
    7.52 p/kWh 27.22 p/day(All rates inc. VAT)
    that’s what my Tariff has been on .
    Last edited by Maggiemay; 17-08-22 at 11:21.
  • meldrewreborn's Avatar
    Level 91
    @Maggiemay

    Cornwall Insight have predicted average price cap figures for Q1 2023 and I've back calculated those to give rates of 67p per unit electricity and 17p per unit of gas, assuming standing charges stay the same. You are currently on the variable tariff and from the rates quoted i think you live in the London area and pay by Direct Debit. - the figures match my spreadsheet which works back from the OFGEM announcement made in February / March 2022 exactly.

    I'd suggest looking at the fix rates on offer now very seriously. If they are significantly less than the predicted rates then going for them is likely to prove to be financially advantageous, that is the fix rates might be less horrendous than the predicted rates for q1 2023. If it so happens that Cornwall have got their forecasts wrong and the price cap turns out to be lower than the fix you can leave the fix without penalty and go back to the flex / price cap rates. Remember too that the price cap will now be updated every 3 months rather than every 6 months previously. So the price cap is currently expected to go up in October and again in January 2023.

    These are not easy decisions for anybody, sometimes doing nothing has little impact, but it can also turn out to be a costly mistake. We'll only know for sure in 12 or 24 months time, whatever the duration of the fix is.