What is happening with Ofgem’s price cap?
Ofgem's price cap: The energy regulator, Ofgem, limits how much suppliers can charge customers on a Standard Variable Tariff (such as So Flex) to reflect changes in the wholesale energy market. This is set in arrears every 3 months.
The October price cap: Each quarter Ofgem sets out its energy prices, with October 1st being the next change. A typical customer will pay £1,923 with the new price cap. Remember, that £1,923 isn't a cap on how much your annual bills will be; the more energy you use, the more you'll pay
What changes to my tariff will I see in October?
We will be emailing all our customers whose rates will change, you don't need to do anything.
If you're on our So Flex variable tariff:
From 1 October electricity customers’ So Flex variable tariff rates will be changing because the unit prices are subject to Ofgem’s price cap. We will write to you, letting you know your new rates.
If you're on a fixed tariff:
If you fixed your energy price at a very low rate, you are already paying less for your energy than the rate set by the Ofgem price cap and the Energy Price Guarantee. You’ll remain on this low rate and you won’t see a reduction in your bill. Therefore you do not need to take any further action.
Will my Direct Debit change?
Your monthly fixed Direct Debit is the regular monthly payment you make towards the cost of your energy usage.
We will continue our normal practice of reviewing customer accounts to make sure everyone is paying the right amount. Moreover, specific alterations to your payments will depend on which region you live in, how you pay for your energy and your account balance. If you’re due for a review and there are any changes to your monthly payment, we will reach out to you via email.
We endeavour to always offer our customers the best deal for their energy usage and provide support where we can. If you're concerned you won't be able to pay, speak with us and we can work out a payment plan with you. Installing a smart meter is also an effective way to control and monitor your energy usage, and submitting regular meter readings helps us make your energy bills more accurate. Read our energy-saving tips and learn about the support we offer our customers.
Read about the process of reviewing Direct Debits here. If you pay for your energy seasonally, this page will help explain how we calculate seasonal payments
Why are prices still high if the cost of gas is decreasing?
In simple terms, the cost of gas isn’t decreasing at the moment. The gas price started increasing during 2021 in the run up to the Russian invasion of Ukraine. The large spike in gas prices occurred in the summer of 2022 which fed into the price caps last winter. These costs weren’t fully passed through to customers due to the support provided by the government. This is why when market prices fell from their highs, equivalent drops weren’t observed in the price cap.
Since April this year, the gas price has stabilised at around double the level pre energy crisis and it is unlikely that prices will fall back to where we are used to, at least in the medium term. This is because Europe used to receive about 40% of its gas requirements piped from Russia which is now cut off. This has been replaced by gas shipped in on tankers from all over the world exposing us to fluctuations in the global markets. Until we are able move our electricity generation away from gas, for example more renewables, and electrify our home heating, we will remain exposed to the global gas price.”
This blog provides more information on recent changes to the energy market and what this means for your bills.
Do I need to do anything on or before 1 October?
You don’t need to do anything before 1 October, but if you’d like to adjust your payments, you have a few options.
To help keep your monthly payments low, we recommend paying any outstanding balance on your account. You can do this by logging into your account and making a one-off payment.
In the coming weeks, we will be reviewing the monthly payment amounts for all our customers and we will email you with any updates to your bills. We recommend waiting to hear from us before making any changes to your monthly payment amounts.
If you would like to change your monthly payment amounts before receiving your Direct Debit review, you are welcome to adjust your Direct Debit amount through your online account.
If you don’t have a smart meter, please continue to submit monthly meter reads via your online account. Regular meter readings help us to ensure your bills accurately reflect your usage (Not sure how to read your meter? Find out here. To learn how to submit a reading, click here.) If you have a smart meter, you don’t need to submit any meter readings - learn more about smart meters here.
Last updated: Thu, 14 Sep, 2023 at 8:47 AMPrint this page
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