Here’s a list of frequently asked questions (FAQs) related to Ofgem’s SVT (Standard Variable Tariff) price increase in October 2024:
1. What is an SVT (Standard Variable Tariff)?
An SVT is a type of energy tariff where the price you pay for your energy can change at any time. It typically reflects the energy market’s current rates and can fluctuate based on factors such as supply and demand.
2. Why is Ofgem increasing the SVT prices in October?
Ofgem reviews and adjusts energy price caps to reflect changes in the wholesale energy market and other related costs. Ofgem said rising prices in the international energy market, due to heightened political tensions and extreme weather events, is the main driver behind the decision to increase prices. Read more here: Energy price cap | Ofgem
3. How much will the SVT prices increase by October?
The average household energy bill is set to increase by 10% from October, meaning the price cap will rise from the current £1,568 for a typical household in England, Scotland, and Wales to £1,717, adding around £12 a month to an average bill. This price cap, set by Ofgem, specifically applies to the unit rates and standing charges, not the total bill, which will depend on your actual energy usage. We will be providing customers with specific details about the new unit rates and standing charges resulting from this change. Please remember, while the cap limits the rates you can be charged, your total bill will vary based on your energy consumption. Increased usage will always result in higher costs.
4. How will this price increase affect my energy bills?
Your energy bills will rise according to the new SVT price cap. The exact impact also depends on your energy consumption. Your unit rates will be confirmed in writing before 1st October.
5. When will the new SVT prices take effect?
The price increase will take effect from 1st October.
6. Can I avoid the price increase?
You might be able to avoid the price increase by switching to a fixed-rate tariff, if available. Fixed-rate tariffs lock in your energy price for a set period, potentially shielding you from variable rate changes. Regularly comparing energy suppliers and tariffs can help you find better deals. Some suppliers may offer incentives for switching or have special rates for new customers.
7. How can I find out if I’m on an SVT?
You can check your energy bill to find out if you’re on an SVT. We are also required to inform you if your tariff is changing.
8. What can I do to manage higher energy costs?
Consider reviewing your energy usage to identify areas where you can reduce consumption. Additionally, exploring energy-saving measures and comparing tariffs may help you find a more cost-effective option. Take a look at some of these websites for energy efficiency advice and information:
9. Will the price increase be permanent?
The increase is based on the current market conditions and Ofgem’s price cap review. Ofgem reviews the price cap on a quarterly basis, and these prices will be in effect from October to December 2024. Future adjustments to the price cap will depend on changes in the energy market and related costs, with any new rates set by Ofgem being applied by suppliers on a quarterly basis
10. Where can I get more information about the SVT price increase?
For more information, visit Ofgem’s official website or you can contact us by telephone on 0345 528 0195 or you can email us at help@rebelenergy.com.