[DebF_EONNext]

Hey everyone 👋

I'm sure most of you have heard the announcement by now that Ofgem are changing how often the price cap is to be reviewed.

What are these changes?

Previously the price cap was reviewed once every six months however Ofgem announced that they would be reviewing this every 3 months in future. This means that the next price cap will be from 1st October 2022 - 31st December 2022.

Ofgem have decided this is the better option for customers and it will also help protect energy suppliers following the collapse of some over the past months.

Will I be affected by the price cap?

If you are on our standard variable tariff Next Flex then the price cap will affect you however there is support out there and we also have a Price Cap Q&A thread feel free to pop over and ask any questions you may have about the upcoming price cap.

When will I know more?

Ofgem are set to announce the price cap some point later in August well before the price cap takes effect.

For people who may be struggling with their energy we also have a Help with Energy Bills thread with lots of information on the support that is available on there. If you need assistance managing your account then please contact our energy specialists.

[meldrewreborn]

@DebF_EONNext

Suppliers claim to be losing money with tariffs based upon the price cap because wholesale prices have continued to move up and they can't increase their prices. Switching to a 3 month period will allow the price cap to follow the wholesale prices sooner, thus limiting suppliers losses.

Eventually the price cap will come down and we'll see the suppliers asking for the interval to go back to 6 months.

[Shazi56]

The price cap is misleading. If you use more than the average you pay more less you pay less. The cost per Kilowatt hour would make it easier to work out how much you are going to pay. As a carer to a disabled person it is difficult to cut down I have no choice I need the heating on. With the cap going up every 3 months I don't know how much I will end up paying. I'm just praying the wholesale price levels of or hopefully drops and that this is then passed on to customers.

[meldrewreborn]

@Shazi56

As i have said repeatedly, OFGEM set price caps for the different fuels, for the standing charge separately from unit consumption, each by region, each by payment method but all for set amounts of electricity or gas (3,100 kWh and 12,000 kWh respectively.

How the price caps are published is confusing because OFGEM give suppliers the option to charge less than the maximum for the standing charge and then more for each unit, providing they keep with the limits published when consumption reaches the set amounts. This mean each supplier could have different prices to others while still remaining within the cap. It would be a little easier (but not much) if it just published the unit prices but these would still be by each region and method of payment.