Our Default Tariff rates are changing for non Direct Debit customers -FAQs
1st November 2023
The Good Energy default tariff is changing on 1st November 2023 just for non Direct Debit customers.
For information on your new prices, please check your personalised price breakdown in your email or letter from us. You can also view the new rates here.
Default Tariff
| Why are my Default tariff rates going to increase in November if I don’t pay by Direct Debit? | We offer a Direct Debit discount on our tariffs for customers who pay by Direct Debit. This is very common across the energy industry. Direct Debit payments are less expensive for us to process because they are automated and reduce the risks and costs involved with processing payments and managing late payments manually. It is much easier and quicker for us to operate when we know how much we are going to be paid and when. We then pass this saving on as a discount to our customers. Our current Default tariff includes a Direct Debit discount for all customers, regardless of their payment method. If you don’t pay by Direct Debit and are on our Default tariff we’ll be in touch in October to confirm what these changes mean for you. You can make sure you keep your Direct Debit discount by setting up a Direct Debit today on our website www.goodenergy.co.uk/direct-debit-form |
| Why am I being asked to set up a Direct Debit? | Direct Debit payments are less expensive for us to process because they are automated and reduce the risks and costs involved with processing payments and managing late payments manually. It is much easier and quicker for us to operate when we know how much we are going to be paid and when. We then pass this saving on as a discount to our customers. You are very welcome to pay by other methods, but won’t receive the Direct Debit discount because of the additional work required for us to process your payments. Most of our Direct Debit customers pay by fixed Direct Debit, which splits their annual usage into equal monthly payments. But if you like paying your exact balance each month, you could set up a variable Direct Debit. You receive your statement, then a few days later we collect payment for the amount shown – meaning you always know how much you’re paying. If you’d like to set up a fixed or variable Direct Debit to benefit from our Direct Debit discount, log into your online account or use our website form to send us your details. We’ll be in touch when your Direct Debit is set up. We’ll always give you at least 10 days’ notice of your first payment being taken. |
| Why is a renewable energy company subject to high energy prices when the issues are mostly to do with gas supplies? | Unfortunately, gas is the key driver of electricity prices in the UK market. Renewables have seen huge cost reductions over the last 15 years and are now among the cheapest ways to generate power. But the price of electricity at any one time is typically set by the last type of generator that needs to switch on to meet electricity demand. In the UK, this is often gas. If that gas is very expensive, then the whole electricity market will be high. Read our blog to find out more. This is not how the market should work. We believe it adds further urgency to the UK’s need to move away from gas and fossil fuels altogether. |
| How are the Typical Domestic Consumption Values (TDCV) changing? | The TDCV (Typical Domestic Consumption Value) is set by the energy regulator Ofgem, and is used by suppliers and price comparison websites in the absence of individual customer data to give an example of household energy usage and prices. The current values are 2,900kWh for electricity and 12,000 kWh for gas. Ofgem have reviewed these values and have made the decision to reduce the TDCV. From the 1st October 2023, the revised TDCV values will be as follows: Electricity – 2,700 kWh Gas – 11,500 kWh This means But the change to the TDCV values only impacts the communication of typical energy use, not your individual bill. Your bill will differ if your usage is higher or lower. |
| Will you be applying the government discounts? | The government have reduced the Energy Price Guarantee to £0 on 1st July 2023 for most households. For customers on prepayment tariffs, there is still a small level of discount to help make sure prepayment customers are paying the same rate as standard customers with a Direct Debit. You can read more on the Energy Price Guarantee here. |
| What has Good Energy done to protect the business and customers from price increases? | With over 20 years’ experience in trading energy, we use careful pricing and buying strategies called hedging, where we forecast the amount of energy our customers are going to use and buy it in advance. This strategy means we are less susceptible to significant market movements. However, the price of power has increased throughout the past few years and continues to be unstable and unpredictable. |
| What are my other options? Are there any other tariffs I can switch to? | Unfortunately, with the current challenges facing the energy market due to volatile wholesale prices, we can’t offer a new fixed tariff that we think is a fair enough deal for our customers at the moment. Our Good Energy Standard Tariff is exempt from the Ofgem energy price cap. We price it to reflect the real cost of matching all the electricity you use with power bought directly from British renewable generators. view the rates on our website and then contact us to switch by emailing hello@goodenergy.co.uk. |
| I’m struggling to afford my energy, what can I do? | If you are struggling to afford your energy, it’s really important you get in touch with us so we can help. Our team are trained to support all our customers with any concerns about paying for their energy. Call us on 0345 034 2400 or email hello@goodenergy.co.uk and one of the team will help. There are several ways that we can help, including setting up a manageable monthly payment plan to help you stay on track. We can also look at getting your meter switched to a prepayment meter if this is the best option for you, so you can top up your meter to pay for your energy as you use it, rather than on credit. You can also contact Citizens Advice for free, independent advice about debt. |