Why is our energy tariff higher than the cap?

Posted by underthetree112@reddit | AskUK | View on Reddit | 10 comments

Forgive my ignorance, energy bills and tariffs completely confuse me, but I thought that the April energy price cap was meant to bring bills down and yet ours have risen.

We came off a fixed Octopus contract in April so I probably should have expected a price rise, but our rates are currently at DAY RATE 30.64 p/kWh NIGHT RATE 12.94 p/kWh. What's confusing is the government's new energy price cap appears to limit the tariff to 24.90 p/kWh.

I realise energy prices have soared recently due to the conflict in the Middle East, but my understanding was that energy prices wouldn’t be affected until July?

I’m also wondering whether we should stick with the variable contract we’re on now or fix in case prices go up. Any enlightenment and/or guidance is welcome.

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nathderbyshire@reddit

Since your with octopus and have smart meters it seems you can use a website like octopus compare to find the best tariff that aligns with your usage. Does all the work for you. You may need to do the monthly subscription for a quid or so but just cancel it straight after if you don't want to pay. They have an app as well on android for now, not sure if the new iOS one is out, still the site works pretty much the same.

https://octopus.compare/

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Willing-Job8685@reddit

You are on economy 7, this is not covered by the price cap.
If you don’t use it your supplier could charge both rates at the same total and you can have a price more in line with the cap.

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underthetree112@reddit (OP)

Thanks

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Victorius_Meldrus@reddit

The energy cap doesn't apply to fixed tarrifs. You've accepted the price per unit they've offered. Obviously unrealistic, but they could offer a tariff at £100 kw/h if they wanted. Nobody is forced to use it.

The price cap only applies to the standard variable tariff.

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underthetree112@reddit (OP)

We’re on a variable tariff now

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72dk72@reddit

Not if its different day and night rate. Cap applies to the single price variable tarrif.

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underthetree112@reddit (OP)

Ah I see. I should have said for context that unfortunately we have an old fashioned immersion heater for our hot water and heating that’s powered by electricity, hence the need for a cheaper overnight rate

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