This year, the energy industry has seen a large increase in the price of wholesale gas and electricity. The rising cost means that energy suppliers, including So Energy, need to pay more for the energy we’re buying to supply your home. In response to these higher prices, the Government has provided financial support packages to protect consumers from these rising prices.
We understand many customers are worried about energy bills this winter, so we’re here to keep you informed about changes in the energy industry, how it affects you and what support we (and the Government) can offer.
How are tariffs changing?If you're on our So Flex variable tariff:
From 1 January, electricity customers’ So Flex variable tariff rates will be changing because the unit prices are subject to Ofgem’s price cap. On average, the price per unit of electricity will be 34.0p/kWh (pence per kilowatt hour, inclusive of VAT) although your specific unit rate will depend on which region you live in and how you pay for your energy. This is due to changes in Line Loss Factors, which is related to the cost of transporting energy from the national grid to different parts of the country at different times of the day. You can see the full list of rates by region and payment type for January to March 2023 on www.gov.uk
The Government’s Energy Price Guarantee and the Energy Bill Support Scheme will still be applied to your account. However, because the Energy Price Guarantee is a discount off Ofgem’s price cap, this will mean changes to the unit rate paid by a majority of our So Flex customers.
For a typical So Flex customer on our standard tariff, they may pay £20 more or less per year, depending on where they live in the country. For a typical So Flex customer on our Economy 7 tariff, they may pay £100-£120 more per year, depending on where they live in the country
If you're on a fixed tariff:
Customers on a fixed rate tariff will see one of 3 changes to their account, depending on the price at which they fixed their energy rates.
- 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.
- If you fixed at a price above the level set by the Energy Price Guarantee, your unit prices will be reduced, depending upon the region in which you live and your payment type.
- If you are one of a few customers who fixed their energy prices at a very high rate, you will receive the full unit rate Energy Price Guarantee discount. However, it’s important to remember that despite the full discount, you may still be paying above the Energy Price Guarantee rates.
We will be emailing all customers whose rates will change, you don't need to do anything. All customers on So Flex and customers on some of our fixed tariffs can use our Energy Price Guarantee discount checker to see our projections of the new tariff rates and discounted prices. Please note that unit rates are discounted while standing charges are not.
Will my Direct Debit change?Your monthly fixed Direct Debit is the regular monthly payment you make towards the cost of your energy usage. Customers eligible for the Government's Energy Price Guarantee and Energy Bill Support Scheme discounts already have these applied to their Direct Debits. As the impact of this price adjustment is smaller than previous changes, we will not be reviewing most customers' Direct Debits.
We will continue our normal practice of reviewing customer accounts to make sure everyone is paying the right amount. If you’re in the course of our regular reviews and there are any changes to your monthly payment we will reach out to you via email.
Find out more about how we review your payments on our help page and the process for reviewing Direct Debits here.
What about Government support?Government's support schemes will remain in place.
The Energy Bill Support Scheme means you will continue to see a £67 credit on your electricity bill until 31 March 2023. The Energy Price Guarantee came into effect on 1 October and is automatically factored into your bills, you don’t need to do anything.
The Energy Price Guarantee caps average household energy bills at £2,500 a year for a typical household until March 2023. This is a cap on the cost of each unit of gas or electricity a household uses, there is no discount to the daily standing charges.
From April 2023, the annual energy bill of the typical household will increase to £3,000; an estimated £500 saving compared to the expected Ofgem price cap.
It’s important to remember the cap isn’t an absolute limit to your energy bills - it is a cap on the price per unit of electricity or gas. The more energy you use, the more you will pay, so your actual yearly bill could be greater or smaller than the Energy Price Guarantee.
What if I can't pay?We endeavour to always offer our customers the best deal for their energy usage and provide support where we can when money is tight. If you’re concerned you won’t be able to pay following our review of your monthly Direct Debit, 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 bill more accurate. Read our energy-saving tips and support we offer our customers.
Should I have done anything on 1 October?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.
If you provide 100% renewable energy, why are prices going up?So Energy buys 100% renewable electricity. This means that for every mwh (megawatt) of electricity we supply to you, we work with renewable generators to match that amount with a green certificate (or REGO).
The price we pay for wholesale energy is based on the blended prices of all sources of energy in the country, which includes wind, solar, coal, gas, and nuclear. The price of energy is the same, no matter the origin and the cap on energy is based on the cost of all sources of energy.
On average, about a third of the electricity from the grid is from renewable sources, while more than a third is powered by natural gas. Because gas is still needed in the mix to supply electricity to the country, the wholesale prices across the country are heavily influenced by the cost of generating from gas power stations. So even though it’s cheaper to generate energy from renewable sources, the price that suppliers and consumers pay is affected by these big increases in gas market.
Find out more about our energy.
Last updated: Wed, 4 Jan, 2023 at 4:52 PMPrint this page
Did you find it helpful?Send feedback