The price cap announced today is for standard variable rate customers. 1136 is the new cap and SPs rate today is 1256. The cap is calculated for Ofgem’s definition of medium users. It does not mean bills will never be higher than 1136, that will depend on how much power you actually use, the 1136 number is just a reference point.
SP will now have to calculate what this means for p/kWh and daily charges and adjust their Standard tariff accordingly.
Fixed term contracts do not have to change.
Probably these changes will not be understood by many who will think their bills will never be higher than the new level, complicated isn’t it?
It wont make the slightest bit of difference anyway - MoneySavingExpert.com reported only this morning there are 100 tariffs available right now that cost less than the proposed cap of 1136 but people just don't switch.
There's nothing Ofgem can say or do to overcome the sort of inertia we're talking about here.
Another feature is that the Ofgem proposal has to first go through parliament, and if passed would not come into effect until 1 Jan 2019.
SP has been noted as having the most expensive Standard Rate on the market. Jonnel is right to say it will make little difference, the 11 million people on SVRs are apparently not at all interested in what they pay for fuel.