- There are three suppliers that are offering tariffs that are not subject to Offgame’s price range.
- These deals can be more expensive because they support the production of renewable energy.
- Prices are likely to increase for these customers due to the current crisis
The households are being advised to check whether they are with the three suppliers whose default tariffs have been exempted from the existing price range.
GEUK, Good Energy and Ecotricity are allowed to charge more than the current Ofgem set cap of £1,277 because they have specific tariffs that support the production of renewable gas or electricity.
Due to the ongoing energy crisis, prices are rising and more suppliers are at risk of collapse.
There are three suppliers that offer tariffs that do not fall within Offgame’s price range.
Those watching fixed deals expire or moving away from another supplier may find annual bills higher than ever before – but few families with firms that have tariffs need to break through this safety net. has been laid out.
This is because they are contemptuous of the price range under the energy watchdog’s rules.
This Is Money takes a look at which tariffs are affected, how much these companies are charging and why they are exempt.
Which tariffs are currently free and how much do they cost?
good energy Customers with Good Energy Electricity SVT and Good Energy Gas SVT tariffs are poised for huge hikes.
Good Energy supplies energy to 94,000 customers, both business and domestic.
The current SVT price is £1,393 a year, but this will increase to an average of £1,703 from 1 November – an increase of more than a fifth.
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This means that those who potentially switch to SVT at an alternative supplier using the £1,277 cap can usually save 25 per cent.
Nigel Pocklington, chief executive of Good Energy, said: ‘Good Energy was exempted from the price cap because we truly and directly support renewable generation and importantly, because our customers choose us for that reason.
‘Not all customers are entirely price driven, in fact the industry’s focus on lowering prices all but one is a major cause of the supplier failures we are seeing today and in recent years.
‘Many customers want to know that their power comes from genuine renewable generators and is helping the UK go green. Doing business this way comes with additional costs, but Good Energy remains competitive despite being a green supplier in the market.
For ecotricity, these are their Green Electricity, Green Electricity + EV and Green Gas schemes.
Ecotricity has 200,000 customers. This Money has attempted to contact the firm, but at the time of publication, it had not yet confirmed the current prices for these plans – but if it goes like Good Energy, families could face a steep increase in bills. have to face.
For all electric deals from all suppliers, this includes both single and multi-rate plans.
For GEUK Customers, formerly doing business as Green Energy UK, have a range of tariffs that could see costs rise.
These include both the Sparkling Electric and Sparkling Gas tariffs, the EKO Electric and EKO Gas offerings, and finally, the Tide Electric and Tide Gas deals.
GEUK has less than 50,000 customers, but remains at a price range of £1,277, despite not having the requirement.
A spokesperson said: ‘We would like to reiterate that it has been business as usual for GEUK during the current market hiatus, as we continued to hedge market risks.
‘We are moving forward with things including registering new customers who have decided to switch to GEUK. It also helps that we have been in business for 20 years.
“Adopting a prudent business model instead of rushing to become the cheapest supplier has served us well.
‘While GEUK has depreciation from the price range, the company has never used it and while we have some customers on SVT, they are charged in line with the price range, which has remained the same throughout the period. ‘
Due to the ongoing energy crisis, prices are skyrocketing for all suppliers and many customers.
Why has Ofgem kept these insults?
Selected by Ofgem, these insults only apply to specific tariffs and not to the supplier as a whole.
Guidance for requesting contempt relies on supplier fees to demonstrate three outcomes.
The first consequence is that the tariff is an SVT that the consumers have chosen.
Second, being at tariffs by consumers, the production and production of renewable energy is supported to an extent that is brought about as a result of subsidies, obligations or other mandatory mechanisms.
Inevitably, more green energy would have to be produced to do so.
Finally, the cost of the provider supplying electricity/gas for the tariff exceeds the level of the price ceiling for reasons that are directly attributable to the support that the tariff provides to renewable energy.
While there is no cap on the cost of these charges, the regulator said it assesses each depreciation to ensure that the additional cost is justified.
Why might this be a problem now?
Due to the ongoing energy crisis, which is explained below, prices are now rising for all suppliers and many customers.
Those looking for a new fixed plan may have noticed that the cost is now hundreds of pounds more than it used to be.
Similarly, while most will be able to take advantage of the default tariff price limit on how much they pay, on these particular tariffs they will not be protected and could see their bills rise by hundreds of pounds.
That’s because there has been an increase in wholesale gas prices for suppliers, who are then passing the costs on to their customers.