Following the announcement of Ofgem’s new price cap, we may have contacted you regarding a change to your Standard Variable Tariff rates from 1st April 2022.
To help you understand these changes and how it affects you, we have tried to answer some of the questions you might have.
|Does this price change affect me?||
This price change only affects customers on our variable tariffs and your new rates won’t come into effect until 1st April 2022.
|What is the Ofgem energy price cap and how is it calculated?||
Ofgem’s energy price cap is the maximum amount that suppliers can charge customers on a variable tariff based on average annual gas and electricity usage. For customers using both electricity and gas, average usage (known as the typical domestic consumption) is 2900 kWh for electricity and 12000 kWh for gas. The aim of the price cap is to keep energy prices fair for both customers and suppliers.
|You raised prices in October, so why are my bills increasing again?||
In 2021, we didn’t increase our prices following the April price cap announcement. Many suppliers increased their prices at this point, but we didn’t. We held out on this increase for as long as possible, but today’s market conditions make our current prices unsustainable.
|Should I switch my tariff or even my supplier?||
Our variable tariffs are protected by the price cap meaning there is a maximum rate we can charge. However, the price cap is reviewed every 6 months and your prices could change again at this point.
You may consider moving to a fixed rate tariff which will protect you from potential price increases. If you value price certainty, some tariffs are fixed for 12 or 24 months so you know how much you will be paying for energy during this time. The rates we can charge for these tariffs can exceed the price cap. If you would like to look at our fixed tariffs, please visit our website at www.outfoxthemarket.co.uk.
It is a good idea to keep an eye on what tariffs are currently being offered, however all energy suppliers are likely to have similarly priced tariffs in the current market.
|Some energy suppliers have ceased to trade, will you continue to supply energy?||
You may have read and heard about rising wholesale gas and power prices and the large numbers of energy suppliers that have ceased to trade as a result. The wholesale price of energy increasing meant in September 2021 suppliers began telling Ofgem that they were struggling.
As we enter 2022, we remain in the midst of high power and gas prices which are 4-5 times higher than normal. We are optimistic and determined to continue trading as an energy supply business.
We have always prioritised doing the right thing for our customers. Whilst other existing suppliers put up their prices to the maximum cap value, we shielded you from such a high increase for most of 2021. Our aim is to continue to help you, but we cannot subsidise customer bills so significantly and indefinitely, so we are having to increase our prices.
|How long will my energy prices stay high?||
Whilst the reasons for the rise in wholesale energy costs are usually temporary, it is impossible to know if or when wholesale prices will go down and whether they will go down to the same prices we would normally expect.
|Why am I paying more for renewable energy?||
At Outfox the Market, we supply 100% renewable electricity. The price we pay isn't determined by how the energy is generated, but the overall wholesale price for all energy. The price of energy from traditional sources has risen and while renewable energy is cheaper to generate, on the market all energy is sold at the same higher price. It is also worth noting that when gas prices are high, electricity prices are too.
|Why has my Electricity Standing Charge increased by so much?||
The biggest driver for the increase in the Electricity Standing Charge is due to an increase in the Supplier of Last Resort Levy.
During the last few months, many energy suppliers went out of business. To avoid being left with no energy, their customers had to be taken on by other suppliers which were appointed by Ofgem under the ‘Supplier of Last Resort’ (SoLR) process.
In order to recoup this charge, Ofgem has added £68 per year to every consumer’s annual Electricity bill. This is recouped in the Standing Charge element of your bill, adding on average 19p per day (varies dependant on region).
|What is the Supplier of Last Resort (SoLR) Levy? Why do I have to pay toward it?||
This is referred to as a SoLR Levy and the applicable costs are paid to the energy company by the distribution network companies. The total cost, taking account of all SoLR Levy claims, are subsequently mutualised across the remaining suppliers in the industry and recovered from consumers via their charges.
Please see Section 5 of: https://www.ofgem.gov.uk/publications/price-cap-increase-ps693-april
|Why are you changing my tariff name?||
We want to make it easier and clearer for you to understand the type of tariff you are on from the name. We will also be including the type of fuel you use in the tariff name.
|What is going to happen to my Direct Debit?||
In line with the price increase, your Direct Debit will be reviewed and the amount you pay each month may change. This will depend on multiple factors such as how much energy you use and how much credit your account is in, so don’t be alarmed if the increase you see in your payments does not reflect the increase you are seeing reported by the media.
|How can I contact you to discuss the price rise?||
We have a number of contact channels available. Our customer service team is available via Live Chat at www.outfoxthemarket.co.uk. or you can call FREE on 0800 103 2702. You can also send us an email at firstname.lastname@example.org.
| What are my new rates?
Please click here to view your new rates. If you are on our variable tariff, these rates are subject to change, but we will give you plenty of notice and they will always be protected by the price cap.
|I am struggling to pay my bills||
We understand that this is a worrying time for customers. In response to the price cap announcement, the UK Government has announced a support package to help prevent many households being forced into fuel poverty. This includes a one-off payment made to all household’s energy bills from October 2022 and a £150 rebate on council tax bills for those in Council Tax Bands A-D.