Gas and Electricity Capping? - HotUKDeals
We use cookie files to improve site functionality and personalisation. By continuing to use HUKD, you accept our cookie and privacy policy.
Get the HUKD app free at Google Play

Search Error

An error occurred when searching, please try again!

Login / Sign UpSubmit

Gas and Electricity Capping?

Ascot Avatar
8y, 4m agoPosted 8 years, 4 months ago
Hi

I thought getting your Gas and Electricity tariffs capped was about saving the consumer
money?

Why is it then i got in touch with my Supplier e.on and they want to charge me a extra
£20.00 a month on top of what i'm paying a month. Thats £240.00

So basically you are paying the price whether you cap or don't cap.!
Ascot Avatar
8y, 4m agoPosted 8 years, 4 months ago
Options

All Comments

(30) Jump to unreadPost a comment
Comments/page:
#1
if you don't cap the chances are it will go much higher then the extra they want from you now.
#2
fairy
if you don't cap the chances are it will go much higher then the extra they want from you now.


Thats the idea but shop around - they may offer you a better deal as a "new" customer - and don't forget quidco or other cashback deals (my OH got £55 quidco for e-on)
banned#3
you mean they have put up your dd, or you have t pay £20 per month to have the capped tariff?
#4
Re: you mean they have put up your dd, or you have t pay £20 per month to have the capped tariff?

Both!
banned#5
Ascot
Re: you mean they have put up your dd, or you have t pay £20 per month to have the capped tariff?

Both!


who have you capped with, that doesnt make sense, most will hike your dd, but not heard of any company making you pay a fixed monthly allowance to use them, are you sure
#6
I rang my supplier and they agreed to cap mine until September next year but with a 18% increase.....which with what there current rates are, was a pretty good deal.
However my DD payment came down £9 a month..!!
I guess all it means is I will be in arrears each quarter!
#7
Read this before you decide it may help, good luck

http://www.moneysavingexpert.com/utilities/you-switch-gas-electricity
#8
this is getting really confusing ! MSE is advising everyone not to change for the next couple of months now until the other 4 leading energy suppliers up their rates :?
banned#9
snowtiger
this is getting really confusing ! MSE is advising everyone not to change for the next couple of months now until the other 4 leading energy suppliers up their rates :?


I chose to ride it out, and have stayed where i am, BG have not put up my tariff as yet (click5) but am still watching what is happening closely

I think the op is confused here, your dd has gone up, you are not paying £20 per month to cap
#10
snowtiger
this is getting really confusing ! MSE is advising everyone not to change for the next couple of months now until the other 4 leading energy suppliers up their rates :?


On the recent advise of Martin Lewis, not personally but on TV :-D, my parents capped with their provider, now its all changed? They are now tied in until Sept 09
Wish he would make his mind up :roll:
#11
May seem small but my bill has gone up from £5 a week(which £1.50 a week was standing charge) to like £9 yet the £5 was combined gas and electric and the £5 was both(though went up to £7-£8 in winter)
#12
snowtiger
this is getting really confusing ! MSE is advising everyone not to change for the next couple of months now until the other 4 leading energy suppliers up their rates :?


British gas and EDF have put theres up and what he is saying is the other suppliers are sure to follow suit.
So if you do a comparison now the others will look cheaper, it takes about 2 months for them to change you over and by that time there prices could have gone up as well. Therefore it may work out more expensive. So he is saying hold fire until all suppliers have increased then do a comparison to find out which is the cheapest after they have all increased prices.
He also says that if you take the cap thats til 2011 in the long run you could be paying more because in 12 months time they could be lowering there prices and you will be left paying the higher capped price. :)

Hope this helps
#13
bitseylango
On the recent advise of Martin Lewis, not personally but on TV :-D, my parents capped with their provider, now its all changed? They are now tied in until Sept 09
Wish he would make his mind up :roll:


What he was saying was if you cap til 2009 that is your best deal but that deal only lasted for a few weeks. If you cap now your tied in until 2011 and it is at a higher rate than the people who capped til 2009 are paying :)
banned#14
to anyone on a normal tariff with BG i would suggest going to click5 through quidco, it is the cheapest tariff they do and there is no tie in, this is only really for folk who are ot ready to change form BG to another company just yet


PLEASE IGNORE THE ADVICE ABOUT QUIDCO, APPARENTLY THEY HAVE CHANGED THIS TO PAYMENT FOR NEW CUSTOMERS ONLY
#15
sassie
to anyone on a normal tariff with BG i would suggest going to click5 through quidco, it is the cheapest tariff they do and there is no tie in, this is only really for folk who are ot ready to change form BG to another company just yet


Thats what i have changed to. According to MSE if your on a standard duel fuel tariff now paying by monthly DD the increase will work out at about 22% but if you change to the click5 then the increase will be 25% apparently that Click as not gone up yet, but it still works out cheaper than standard even after increase :thumbsup:
banned#16
Ignore my ealier comment on quidco, it seems they have now stopped paying it to excisting customers, and now only pay it to new customers
#17
alfie73
What he was saying was if you cap til 2009 that is your best deal but that deal only lasted for a few weeks. If you cap now your tied in until 2011 and it is at a higher rate than the people who capped til 2009 are paying :)


thanks, I would hate to think my parents had done the wrong thing :thumbsup:
#18
bitseylango
thanks, I would hate to think my parents had done the wrong thing :thumbsup:


Apparently no, people who capped early done the right thing and they will end up better off :)
#19
Thanks all for your comments much appreciated!

sassie

I was in arrears due to payments set by e.on was to low. but i paid that off with card.

And my new Direct Debit payments each month. E.on wants me to pay is £90.0 Direct Debit each month + £20.00 on top each month for capping.
#20
Ascot
E.on wants me to pay is £90.0 Direct Debit each month + £20.00 on top each month for capping.


Jesus wept..! What are you powering?

Spend the money on some decent insullation and you'll be much better off in the long run, avoid capping now as the industry is wise to it, nothing to stop you looking around and switching as often as you like though? Use uswitch.com for a comparison and quidco when you do switch.
banned#21
Ascot
Thanks all for your comments much appreciated!

sassie

I was in arrears due to payments set by e.on was to low. but i paid that off with card.

And my new Direct Debit payments each month. E.on wants me to pay is £90.0 Direct Debit each month + £20.00 on top each month for capping.


Hi Ascot

I have scoured the net to find info on this and cant find anything

Could you please post what tariff you are on? ANd the tariff prices if you know them please? Also do you know the tie in with this tariff?
#22
We moved to E.ON in January and were told that the prices would be guaranteed till June 2009, but I can find no mention of this anywhere on the site any more. Am praying that the prices dont rise as a 35% increase would be almost £50 per month.
Looking at the price rise and capping thing, if it costs more to cap and you pay more now, what happens if the price goes down? Will they lower the prices or are you stuck at the higher rate? Does it not all mean that you will end up paying the same higher amount if you cap or not? My guess is that no matter what, everyone, capped or not, will end up having paid the same in the end!
#23
Ascot
Thanks all for your comments much appreciated!

sassie

I was in arrears due to payments set by e.on was to low. but i paid that off with card.

And my new Direct Debit payments each month. E.on wants me to pay is £90.0 Direct Debit each month + £20.00 on top each month for capping.


Surely not! If that's correct then they really are taking you for a ride. Nobody should have to pay a fee for capping the price, that is just wrong.

Capped prices are higher than standard prices, basically due to the fact that the energy companies have to price in the potential future increase in the costs to them to buy the gas etc. It's a gamble whether a capped price plan will work out in the customers favour or the suppliers favour. You really need to check the price per unit and work out what the increase would mean for you if you stay on your current plan verses other available plans at the time.

Fixing offers certainty over future prices which does not necessarily guarantee savings. If we had more gas storage facilities in this country then savvy energy suppliers could offer reasonable fixed rate deals with expensive tie-ins so they would have a good idea how much gas they needed to buy for the coming year and could buy it at better prices in advance. But they'd rather panic us, not invest and keep the prices high and with massive price fluctuations to allow them to make massive profits.
#24
kidcat
We moved to E.ON in January and were told that the prices would be guaranteed till June 2009, but I can find no mention of this anywhere on the site any more. Am praying that the prices dont rise as a 35% increase would be almost £50 per month.
Looking at the price rise and capping thing, if it costs more to cap and you pay more now, what happens if the price goes down? Will they lower the prices or are you stuck at the higher rate? Does it not all mean that you will end up paying the same higher amount if you cap or not? My guess is that no matter what, everyone, capped or not, will end up having paid the same in the end!


To a certain extent, I agree that you may not see much difference between fixing and not fixing over the course of a year. Fixing can be more expensive and it's a lot less flexible as you generally have a cancellation fee which effectively ties you in as the fee would negate any saving from switching. It's this that has put me off fixing in the past.

Not fixing at least offers you the chance to switch to the best available deals around at any given time, and with cashback available through Quidco et al, you could find this a cheaper option.
#25
In short... usually if you cap your are entering into a contract and will be held to it, much like a mobile phone (for example my £40 a month to vodafone will buy a heck of a lot more for now than it did 6 month ago) and as both Gas, Electricity and fossil fuels to generate elecricity are commodity based (black gerbil will no doubt be an expert on this part :whistling:) they are traded as such - in essence what you are saying is "I'm going to use x amount of power over the next x number of years" and as an energy company if you purchase it for me now at today's price I agree to buy it back from you over a period of x years at a fixed and agreed price...

So if the price goes down (and here's where the risk kicks in) you will have already purchased your energy at the higher rate and will therefoe be locked in, your energy company will not take that hit for you...

That said... the law governing energy trading and pricing is very new (the industry was only de-regulated at the turn of the decade) and doesn't cover such things as you moving home and taking the pre bought energy with you and can't stop you swapping suppliers anyway regardless of what contract you may have entered into...

Does any of that help you? or am I confusing matters for you?
#26
Just had an eon sales person around, when I told him I was with atlantic he said thanks and left, I asked him why? is he not going to offer his sales pitch, he replied they are a lot cheaper than us, at least he was honest.
#27
Ofgem are really cracking down on miss-selling at the moment, probably not worth the commission to lose his job over, the fine can be upto a maximum of 10% of turnover which would wipe out any of the major utilities providers...
#28
Flodd Re: Jesus wept..! What are you powering?

I ask myself that question!

sassie Re: Could you please post what tariff you are on

I just have the following - Duel tariffs

Electricity - Energy Online Extra Saver
Gas - Energy Online Extra Saver Gas

It's about £60.00 a month i'm paying for for both.

I thought it was a bit low. But not £30.00 extra a month
banned#29
ascot i cannot find anywhere that states they charge £20 per month to be on this rate, and as i have already stated i dont know of any company that charges you a fee to use a tariff
#30
I'm with Sassie on this one, you usually cap the kWh price so it would be a moot point adding on a surcharge anyway, your power company would more than likely just increase the tariff. It may be that they're trying to avoid the arrears situation from re-presenting itself by increasing your tariff now but the final say on that increase is in your hands...

The best advice is to compare the kwh rate on uswitch and then use quidco to swap providers, make sure you take regular meter reads and turn things off when they're not in use, for instance a mobile phone charger plugged into a wall socket and switched on with continue to consume power at the exact same rate whether or not a mobile is charging at the other end or not...

Post a Comment

You don't need an account to leave a comment. Just enter your email address. We'll keep it private.

...OR log in with your social account

...OR comment using your social account

Thanks for your comment! Keep it up!
We just need to have a quick look and it will be live soon.
The community is happy to hear your opinion! Keep contributing!