How the energy price cap will affect you
If you are on a variable standard tariff or, you have a pre-paid meter, you will be placed on a capped
price tariff.
What is a variable standard tariff?
A variable standard tariff is the tariff you are automatically placed on and, is the most expensive tariff.
Why am I being put on a capped price tariff?
This is the Governments way of helping those who don’t switch to a cheaper tariff themselves.
What is a capped price tariff?
A capped price is usually in place for one year, in some cases, the term may be a bit longer. However, it would appear that OFGEM will be setting the prices twice a year. It means, your prices cannot be increased during the term of the cap. If energy wholesale prices come down, your price will be reduced.
What is the difference between being placed on the new capped price and switching to a cheaper energy deal myself?
Like we mentioned earlier, the capped price is for those who don’t switch to a cheaper deal themselves. If you switch to a cheaper deal yourself, you won’t be placed on the new capped priced.
- New capped price average savings = £79
- Switching to a cheaper online tariff savings = £300
What is a cheaper online tariff?
This is where the energy suppliers compete with each other to win your custom. They offer cheaper deals online because this is where you can compare all the energy suppliers prices in one place. It’s just a competitive marketplace.
How can I get a cheaper online tariff?
Visit an OFGEM Accredited Comparison Site. Make sure you dig out a bill, or even better, an annual energy usage statement. When you visit a comparison site they will ask you:
- Your current supplier and what tariff you are on
- How much energy you use. You can give this information in £’s or in KWH’s
From there, they will give you prices for all the online tariffs