Why has the energy regulator Ofgem announced an increase to its price cap?
Ofgem has announced an increase in the price cap (effective 1st April 2019) due to increasing wholesale energy and delivery costs along with a rise in costs for the government obligations all energy suppliers need to deliver. Ofgem has provided more information on the latest price cap level on its website here.
What has Ofgem set the price cap level at?
The price cap levels for a dual fuel customer based on typical annual consumption are:
Typical annual bill*
Monthly Direct Debit
Pay As You Go
Note: These amounts will differ depending on how much energy a customer uses.
*The price cap levels represent a dual fuel customer using the Ofgem typical annual consumption values for gas of 12,000kWh and single rate electricity of 3,100kWh. Includes VAT at the currently applicable rate of 5%.
What does that mean for ScottishPower prices?
To take account of the increasing wholesale energy and delivery costs along with a rise in costs for government obligations, we’re increasing our dual fuel Standard and Basic variable tariff prices by an average of 10.26%**. However, please be assured that your prices will not go above the price cap.
**Based on customers who pay monthly by Direct Debit, averaged across Great Britain and calculated on the Ofgem typical annual consumption values for gas of 12,000kWh and single rate electricity of 3,100kWh on standard prices. Includes VAT at the currently applicable rate of 5%.
Are we contacting affected customers with the new price cap details?
If your prices are increasing as a result of this new price cap level you’ll receive a letter or email in late February. This will include a personalised quote of the impact on your prices and also how much you could save by moving to one of our fixed price tariffs.
How can you help protect against future increasing energy costs?
Move to one of our fixed price tariffs today. Not only could you save on your energy costs, you’ll know exactly what prices you’ll be paying until your new tariff ends. If you pay quarterly by cash/ cheque or Direct Debit, there’s no need to change how you pay. You can also move between our tariffs at any time without paying exit fees.
To find out how much you could save, find out more here or call us free on 0800 027 0072 (lines open Monday to Friday 8am to 10pm and Saturday 8.30am to 6pm) and we’ll be happy to take you through your options.
Who decides the price cap?
Ofgem is responsible for setting the prices for this cap and suppliers cannot charge more than the cap for gas or electricity.
How often will this price cap be updated?
The next price cap will take effect on 1st October 2019 and is planned to be updated every six months after that whilst the cap is still in place. The cap will be in place until at least the end of 2020, but may be extended beyond this and as far as the end of 2023.
Will your Direct Debit payments change when the new prices come into effect?
We review your account regularly to try and ensure your payment stays in line with how much energy you are estimated to use during the year. Please be assured that if your payments need to be adjusted we will notify you before any changes are made to your Direct Debit payments. Alternatively, you can access our Direct Debit Manager through your online account or ScottishPower App, and adjust your monthly Direct Debit payments to better suit your needs.