We’ll be in contact with all our prospects within the coming weeks, with a personalised breakdown of precisely what this implies for you.
What’s the power value cap?
The worth cap limits the quantity an power provider can cost for items of gasoline and electrical energy. It additionally impacts the standing cost which is the every day price per gas sort and is about by Ofgem.
The worth cap is usually communicated as an annual determine based mostly on the ‘typical consumption’ of a dual-fuel family that pays for his or her power payments by direct debit.
How a lot you are really charged will rely upon how a lot power you utilize; so those that use extra, pays extra.
Abstract of modifications
- On the first July the Ofgem value cap will lower from £1,690 to £1,568 for a typical dwelling.
- We’re slicing costs from July 1: round £122 a yr for a typical dwelling.
- For over 3 years our default standing prices have been cheaper than another massive provider, and can proceed to be so.
- If you happen to’d like to guard your charges from future modifications, we’re providing a 12 month mounted tariff with no exit charges.
- We’ll regulate your account steadiness, and counsel a change to your funds if it appears such as you’re paying an excessive amount of or too little.
Good to know: if you happen to’re not paying by Direct Debit, you can save an extra £80 on common by setting one up with us.
If you happen to’re struggling to pay now we have numerous assist on provide.
What extra assist is on provide?
If you happen to’re frightened about paying your payments proper now, head to our devoted assist weblog or give us a name.
You’ll discover detailed details about our tariffs, background data on the power disaster, and a hyperlink to our Monetary Assist kind, which directs you to alternative ways we may also help you if you happen to’re struggling to pay – together with a £30 million Monetary Hardship fund.
What power costs will I be paying?
Your power costs rely upon the place you reside and the way you select to pay.
Beneath, we have included a breakdown of all Versatile Octopus charges and prices by area and cost methodology.
Why do costs fluctuate based mostly on location and cost methodology?
It prices us extra to provide power to some areas relying on issues like proximity to mills, price of sustaining native networks and extra.
The identical is true with completely different cost strategies – for instance, it prices suppliers extra to manage and handle accounts that do not pay by Direct Debit, so Ofgem elements that into their Value Cap.
Managing your direct debit quantity
One of the best ways to grasp our urged cost quantity is to have a look at your Steadiness Forecast. We constructed this useful device to point out you precisely how a lot we anticipate you may spend on power over the subsequent yr based mostly in your tariff costs and typical power consumption (which we work out based mostly on years of your meter studying information).
What if I feel Octopus’ cost suggestion is incorrect? You possibly can change your personal cost on-line and through our app. In case you are already in debt and attempt to scale back your direct debit we suggest you give us a name and we can provide you a hand.
Desire a fast reminder of why we set your funds to a easy quantity yr spherical? Watch our fast explainer video:
Regularly Requested Questions:
Does the power value cap have an effect on me?
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If you happen to’re on a variable tariff, like our Versatile Octopus, the Ofgem Value Cap protects the value you pay.
The worth cap particularly applies to variable tariffs as a result of they aren’t mounted in opposition to the volatility within the power markets. Totally different suppliers can refer to those tariffs in plenty of methods; normal variable tariff (SVT), non-fixed, and so forth. At Octopus our variable power tariff is known as Versatile Octopus.
If you happen to’d like to substantiate which tariff you are on, and particulars like your present costs and contract dates, you possibly can see them in your on-line account (scroll slightly approach down and take a look at the small print beneath your property deal with).
You possibly can learn extra concerning the power value cap and whether or not it impacts you on Ofgem’s web site.
How might I get power £80 cheaper by paying by Direct Debit?
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Our Versatile tariff could have barely completely different unit charges and standing prices based mostly in your cost methodology. The £80 isn’t a flat low cost for Direct Debit prospects (or a cost on non-Direct Debit prospects) – it’s the standard financial savings a median dwelling might see over a yr on the cheaper Direct Debit dual-fuel charges.
If you happen to change the way you pay, our system will decide that up and alter your charges robotically, so if you happen to don’t have a Direct Debit proper now, it’s tremendous straightforward to entry the most affordable costs. All you should do is about up a Direct Debit on-line and we’ll do the remainder.
Why are tariffs typically cheaper if I pay by Direct Debit?
Not having a Direct Debit prices us much more in admin.
We do not suppose it is honest to make everybody cowl that further price, so we do provide a less expensive charge for individuals who select to pay by Direct Debit, which prices us much less to handle.
Is the £1,568 determine from Ofgem the utmost value I’ll pay for power?
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No: this determine will not be absolutely the most a buyer might pay.
If you happen to’re affected by the value cap, the safety you obtain is relative to how a lot power you utilize.
Ofgem calculates the value cap based mostly on the yearly utilization of a typical medium consumption dwelling (that is 2,700 kWh of electrical energy and 11,500 kWh gasoline per yr). It represents the utmost quantity Ofgem considers honest for power suppliers to cost prospects on variable tariffs.
This determine is utilized by suppliers to use the value caps safety in opposition to every buyer’s precise utilization. Put merely: if you happen to use extra – or much less – power than that typical dwelling, your personal yearly power prices on a tariff priced on the most charges could also be greater – or decrease – than that £1,568 determine from Ofgem.
What are the precise most unit charges and standing prices of the power value cap?
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The worth cap units a most charge for:
- Vitality items: the value suppliers can cost variable tariff prospects per unit of gasoline and electrical energy you utilize
- Every day standing prices: the value suppliers can cost per day for ongoing prices, like paying the businesses who handle distribution networks, working prices, and so forth.
Ofgem have shared that on common – for patrons paying by direct debit – the unit charges will likely be:
Electrical:
- 22.36p / kWh unit
- 58.03 p / day standing cost
Gasoline:
- 5.48p* / kWh unit
- 29.36p / day standing cost
Necessary: these are averaged figures from throughout all areas within the UK. As sure prices fluctuate, e.g. what transmission community charges we pay in an space, the precise most unit charge varies relying on area. There are different elements too: completely different most charges for Financial system 7 tariffs (which have a day and an evening value) and prepayment meters.
You possibly can see Ofgem’s figures on the value cap standing prices and unit charges right here.
* rounded from 5.479p / kWh unit
I’m on a hard and fast tariff proper now, what occurs when it ends?
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If you happen to’re on a hard and fast tariff, the very first thing to know is that the value cap doesn’t have an effect on your present power contract.
We’ll at all times electronic mail you upfront of your mounted tariff coming to an finish.
If you happen to’d like to substantiate your present costs and contract dates, you possibly can see them in your on-line account (scroll slightly approach down and take a look at the small print beneath your property deal with) or on any PDF power assertion. It’s often on the second web page, close to the highest of the breakdown to your electrical energy and / or gasoline prices for the interval.
