Ofgem tariff cap — Bulb Community

Ofgem tariff cap

As ofgem have capped the standard rates for energy and that your tariff is a variable tariff. Is your tariff linked to this cap that is set by ofgem and if so how will this affect your tariff costs when ofgem review their tariff in April? I'm asking as there is an indication that they will increase the tariff cap which will increase costs.

Comments

  • Hi @CatAttaxx ,

    First of all, the energy cap is 'a cap' - it isn't meant to be used as a 'target' despite what some (big six) energy companies would like. It's just the maximum amount companies are allowed to charge on a standard variable rate tariff (fixed rate tariffs are exempt). Therefore if there cap goes up, Bulb and others are under no obligation to increase their prices (however, the fact the cap goes up is probably an indication wholesale generator prices went up as well).

    OFGEM will be reviewing the wholesale rates this month and they'll come into effect in April.
  • RichyB said:

    Hi @CatAttaxx ,

    First of all, the energy cap is 'a cap' - it isn't meant to be used as a 'target' despite what some (big six) energy companies would like. It's just the maximum amount companies are allowed to charge on a standard variable rate tariff (fixed rate tariffs are exempt). Therefore if there cap goes up, Bulb and others are under no obligation to increase their prices (however, the fact the cap goes up is probably an indication wholesale generator prices went up as well).

    OFGEM will be reviewing the wholesale rates this month and they'll come into effect in April.

    In addition, it's worth stressing again that it's a cap on rates not on total cost. It certainly isn't a cap that says use as much as you like and the cost will never go over this much.
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