Ofgem set the upper price limit for our Standard and Energy Assist tariffs (known as a cap) and have also introduced changes to how suppliers can apply Direct Debit discounts.* These discounts will no longer be a fixed amount and will be a unique amount depending on where you live, your meter type and how much energy you use. The changes could affect what you pay. Understandably, you may have questions about this and so below are the answers to the most commonly asked questions.
Frequently asked questions
How are Standard and Energy Assist tariffs changing?
Due to recent changes by Ofgem, the price of our Standard and Energy Assist tariffs is changing. This will be changing in two ways.
The introduction of a price cap means that Ofgem are setting an upper limit for how suppliers can charge customers who are on our standard tariffs. This cap will be reviewed every six months (April and October) to make sure it reflects our underlying costs of supplying energy. This change means that for some of our customers, from the effective date, their price will automatically decrease, and for others their price will rise in line with the new price cap.
With our Direct Debits, we currently apply a £40 per fuel annual discount for our Standard tariff customers who pay by Direct Debit*. As this is a fixed amount, it means that it doesn’t currently change depending on usage. Ofgem have changed how this is calculated and these discounts will now be unique depending on where you live, your meter type and how much energy you use.
Will my account automatically reflect the new prices and Cap Tariff?
Yes, the new prices will be applied automatically to your account. This will take place after 1 January 2019 for customers on our Standard and Energy Assist tariffs.
How long are prices capped for?
The cap that starts on 1 January 2019 will continue until 1 April 2019 when it will be reviewed again by Ofgem. The cap will continue being reviewed every six months (April and October). This change means that for some of our customers, from the effective date, their price will automatically decrease, and for others their price will rise in line with the new price cap.
When will the new prices come into effect?
These new prices will come into effect from 1 January 2019 for customers on our Standard and Energy Assist tariffs.
Does this affect gas and electricity customers?
Yes, the cap and resulting price changes apply to both gas and electricity for all Standard and Energy Assist tariff customers.
*If you have a fixed price tariff and pay by Direct Debit or standing order, you’ll get a discount of £40 a year for each fuel, when compared to another way of paying. The discount is applied to your standing charge on a pence per day basis, until your tariff ends. If you have capped prices on a standard variable tariff, your standing charge and unit rates will be reduced for paying by Direct Debit or standing order. Your discount will vary depending on how much energy you use, where you live and your meter type. Discounts do not apply to customers on an Energy Assist tariff or with a Pay As You Go meter.