Price Cap Q&A

  • westy26's Avatar
    Level 1
    Hi UKDave51,

    It sounds like your fixed tariff was coming to an end due to you either being on a 1 year fix or a 2 year fix from January/February 2020/2021 (we're not pulling a fast one, I promise!)

    I completely get that it's not ideal, and the sudden realisation that your tariff is ending along with this Price Cap announcement has left a lot of us in the same situation 😔

    It's best to check your current account balance, and your monthly payments if you pay by Direct Debit - prices will be increasing and getting ahead of the game now is better than leaving things until later. If you don't pay by Direct Debit, you can always set one up on your online account, not only does this provide a small saving on your unit rates and standing charges by paying this way, it also helps to budget easier.

    I don't want to teach anyone to suck eggs as such, however, making small changes such as turning the thermostat down by one degree and making sure anything not in use is switched off at the plug really does go a long way!

    Pete 😊


    Can you explain why the the standing charges have increased? I understand the wholesale prices but the standing charges are a fixed cost for the supply of energy and have no correlation between wholesale Energy prices and standing charges., your not suddenly doing anything different to supply the energy. This seems to be flagrant and unwarranted profiteering.
  • PeterT_EONNext's Avatar
    Community Team
    Hi @westy26

    I know that the standing charges have increased alongside of the large increase of the unit rates for both gas and electricity, all coming down to the increasing costs of purchasing gas wholesale.

    The standing charge has risen significantly in the new price cap period. One big factor causing this is an increase in fixed network charges per customer, (instead of applied by kWh energy usage). Reasons for the increase include; OFGEM changes to move costs away from kWh usage and into fixed charges; also, some impact from costs of suppliers ceasing to trade, which will be recovered through all suppliers bills for all consumers.

    I know this is a worrying time for all (myself included) and I hope that things are able to come down in cost again later down the line.

    Pete
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  • Andy65's Avatar
    Level 43
    Hi @westy26

    Energy suppliers will maximise the standing charge as much as they can because it's a guaranteed income. The fault lies with Ofgem in my opinion because they allow them to do it.
    The energy suppliers also know that as they pass on these huge increases to their customers, customers will try more than ever before, to reduce their usage. So this reduced usage has a lesser effect on the suppliers income because they've weighted the energy cost more towards the standing charge.
  • Maz3High's Avatar
    Level 1
    @meldrewreborn thank you for responding. However I'm still confused.
    unfortunately I could check out your pdf, my phone wouldn't let me but I do live just outside of London and I do pay my direct debit and I am on a variable rate.
    So my question is .. if the price cap is 31.8258 why is my new variable tariff in Apr going to be 34p or 37p? Thanks
  • Simpsonfree's Avatar
    Level 1
    Good Afternoon,

    I have been searching for an answer to this question, I just want to check before I renew. At present I am on Fix Again 15 monts v5, it runs out on 18th April 2022. If I renew now when does my new tariff start? Now or the 18th April?
  • lynsey0605's Avatar
    Level 1
    Hello, I’m new to this forum but reading some of these comments is clearly worrying as there are different a messages going round from eon-next I’m on a fixed rate so my bill is not changing till July but then will go up over 100% so from £115 on to £240 pm we are a family of 4 in a med 3 bed house so there’s not much of 54% cap for me??
  • meldrewreborn's Avatar
    Level 91
    I Don't work for anybody, let alone Eon so I can't answer your question.

    But the unit rate on any tariff must not exceed the appropriate price capped rate. There are rates for gas and electric, DD, cheque and prepayment, according to where you live and whether you have a single or dual tariff supply. Are you looking at the TCR which incorporates the standing charge or are you on a two tier rate (economy 7) or do you have arrears. People here will attempt to help you but sometimes we can't because the information provided doesn't tell the whole story. if you live outside London it could be the eastern area - 27.8p or south eastern 28.1p for a single rate supply. These are maximum rates inclusive of VAT permitted - supplier can charge less (but tend to shave just a fraction off. The standing charge is additional.

    However, suppliers do not have to charge the maximum standing charges. If they trim the standing charges they can increase the unit rates.

    If you could show a picture of the document setting out the proposed charges we could answer you better.
    Last edited by meldrewreborn; 07-03-22 at 15:31. Reason: correction
  • TAYLOROY's Avatar
    Level 1
    Hi

    can you please send me or reply to this message with the variable tariff prices set for Yorkshire from the 1st April , I fixed on the v10 and want to see if I made the right decision.

    thanks in advance
  • Landmark's Avatar
    Level 29
    @meldrewreborn thank you for responding. However I'm still confused.
    unfortunately I could check out your pdf, my phone wouldn't let me but I do live just outside of London and I do pay my direct debit and I am on a variable rate.
    So my question is .. if the price cap is 31.8258 why is my new variable tariff in Apr going to be 34p or 37p? Thanks
    The price cap is 28p per kWh on the default tariff. See here for further details.
    It appears that you are not on the default tariff but on a special variable tariff (which is not fixed so it can change).
    Are you on a tariff with Eon Next?
    If so, what is the name of your tariff?
    If not, then what company are your electricity providers?

    Eon Next Customer

  • Maz3High's Avatar
    Level 1
    @Landmark we were with symbio but they went bust we were transferred over to eon next.
    according to ofgem "If your supplier has stopped trading and you are switched to a new supplier you are likely on a price capped tariff".
    I just don't understand why, if there is a price cap and I'm supposed to be on a price capped tariff, why am I currently paying 24.14p kWh?
    when I transferred, I was put on a tariff called net flex which has a day and night rate.
    Thanks for trying to help any assistance is greatly appreciated.