29 nov Ofgem has announced consultations on:
- The potential impact of increased wholesale volatility on the default tariff cap. This consultation explores whether recent market volatility has led to the level of the price cap materially deviating from the efficient cost level allowed for in the price cap.
- The process for updating the default tariff cap methodology and setting maximum charges. This consultation proposes that the licence be modified to allow Ofgem to alter the price cap outside of the usual six-month cycle where exceptional circumstances necessitate doing so. Ofgem considers this ability important to enable it to manage the risks resulting from the interaction of the cap and unstable market circumstances.
- The true-up process for Covid-19 costs. This consultation considers how Ofgem will "true up" the float allowance it previously included in cap periods six and seven to account for additional material costs as a result of the Covid-19 pandemic.
- Reflecting end user categories in the default tariff cap. This consultation proposes that licence conditions and Ofgem's methodology be amended to introduce end user categories specific to prepayment meter (PPM) customers. This will allow for a better reflection of the costs associated with PPM customers from cap period eight onwards.
- The Energy Company Obligation (ECO) scheme allowance methodology in the default tariff cap. This consultation considers a new input that will enable Ofgem to account for the costs of the ECO4 scheme in the default tariff cap, subject to ECO4 being approved by Parliament.
Soldato
Our fixed term with octopus is up in January, the new fixed offer is well over twice what we pay now. Even dropping into their "variable" rate, which leaves you at the risk of insane escalation is over 50% more than our current rate. It's going to be painful and we have some choices that we'll need to make because that's going to put considerable pressure on the budget.
DON'T FIX, go onto the standard variable rate as this will be at or very close to the price cap. Fixing doesn't follow the price cap rules and many providers are pushing fixed deals heavily right now expecting prices to fall next year all while you8 are stuck on a fixed price, and suddenly very expensive deal, likely with a hefty penalty for leaving.
Soldato
This is what we are doing because the fixed is over £300pcm. I suspect though that once the cap lifts in April it's going to balloon anyway.
Will be another 30% probably. Still cheaper than any fix now.
Unless you can fix at or just over the cap I'd go variable.
The next increase is going to be another hike but it will be summer.
I'm paying just over the cap now but it's a 3 year fix if I need it. Even then I was tentative on taking the fix
Just looked at Scottish Power current fixs...
30p a unit electric
8.5p a unit gas.
That's more than double what I was paying before the gas price spike.
30p a unit. Crazy.
They really don't want new customers. Can't blame them really
The next increase is going to be another hike but it will be summer.
I'm paying just over the cap now but it's a 3 year fix if I need it. Even then I was tentative on taking the fix
Just looked at Scottish Power current fixs...
30p a unit electric
8.5p a unit gas.
That's more than double what I was paying before the gas price spike.
30p a unit. Crazy.
They really don't want new customers. Can't blame them really
Associate
Pity us first time account holders who had no choice but to take a new fixed contract
Pity us first time account holders who had no choice but to take a new fixed contract
I don't think you can be denied a variable tariff?
Associate
I was only given 2 options when I signed up - 2 flavours of fixed. No option for variable. Being badly abused - 32.6p/kwh and 9.3p/kwh
I've raised a complaint with BG Evolve, and nothing has come of it.
Soldato
Well at least you won't be with BG Evolve anymore, you might be put onto a different tariff with BG themselves?
You should have stayed with your previous supplier. You'd have been moved onto variable when fixed tariff ended.
Associate
Nope. They've just renamed themselves. This is the future for all BG customers now...
Associate
I moved to the UK this year. Bought a house (new build) and moved in in August. I have no previous supplier
Had been staying in AirBnBs until we found a place.
Soldato
Associate
They had different tariffs... they told me all existing BG customers would be migrated to Evolve.Ah ok, so same tariffs etc. as they were run by the parent company
Then, they told me that Evolve was rebranding as BG because of the confusion they'd caused.
The only small mercy is that there's no exit fee and it's only a 12 month fix... hopefully prices come down over the summer and I can switch to a decent provider. I've had nothing but hassle, misinformation and crap from BG since day 1.
I moved to the UK this year. Bought a house (new build) and moved in in August. I have no previous supplier
When you bought the house it would have had a supplier in place, even from new, it’s something the developer puts in place (usually one of the big six). If you took no action to agree a tariff or change supplier and simply took over the existing supply, you would have been on the standard variable tariff.
It’s too late now though unless you think there is scope to raise a complaint (e.g. you didn’t switch and the current supplier was the one the developers put in place and they didn’t offer you the variable. If you switched to them then they don’t have to offer it to you.)
Associate
I tried to take it on. The british gas website told me I had to register with British Gas Evolve - so I did which then triggered the switch. Hence my complaints about misinformation. I have to wait for the 8 week period or whatever it is before I go to the ombudsman.
This.
You always (as far as I'm aware) get put on variable with the existing supplier.
You could have stayed with whoever that was. Even if they failed you'd still be able to stay on variable
Edit.
As above, raise a complaint. You are basically paying 2-3x the variable rate
Associate
- Joined
- 4 Aug 2014
- Posts
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In a bizarre manner I think if this continues it’s at least going to get all of us to be even more aware about our individual energy footprints… better for the planet etc.