We already know they are, in April
Energy Prices (Strictly NO referrals!)
- Thread starter DXP55
- Start date
Soldato
Elec 48 days 160 units 73 quid shocking 
That's literally exactly what we do, it even says so in the post you quoted
A fixed DD makes that really simple.. Having for example the power bill over double month on month would mean we'd either have to hold a much bigger float or risk going overdrawn.
This way with a fixed monthly DD we can work it out more easily and have a more modest float which we use for occasional bills and the ad hoc dog sitter etc.
Maybe this is boujee but my motivation to get interest on £600 is basically zero, which isn't far off what the interest would be.
Soldato
As I understand it they are still helping to cap the pricing but it's less good, average of £3K/year instead of £2.5K/year, and the £400 help we all got is ending.
So for most regular folk, the average bill for the year will go from £2.1K~ to £3K.
With no support at all that £3K would be higher still.
Soldato
It would been just as simple for the energy companies to state whom is on fixed tarrifs and not include them though which yes is what is should have been because then those whom need it for the actual increased bills got it, those whom don't have an increase don't and it reduces the overall bill for everyone longer term because we are not subsidising for a longer time as a collective to cover the increased borrowing we have doen now.
It would as been as simple as from say Octopus we have
4,150,500 people variable October
4,450,000 people variable November
4,550,000 people variable Decemeber
Taking that total up over the 6 months, submitting to Gov and gov return the total monies needed and then when a variable bill is sent by Octopus they can confirm the calculation of people at the end of the month and assign as needed since they already do differnt bills and figures for such customers. There is no need to means-test anyone.
Soldato
At moment you can get 7% on an easy access account so even at £600 in itself is only £3.54 a month or £42.50 a year. That is a whole month of my electric at moment. It isn't almost zero to everyone.That's literally exactly what we do, it even says so in the post you quoted
A fixed DD makes that really simple.. Having for example the power bill over double month on month would mean we'd either have to hold a much bigger float or risk going overdrawn.
This way with a fixed monthly DD we can work it out more easily and have a more modest float which we use for occasional bills and the ad hoc dog sitter etc.
Maybe this is boujee but my motivation to get interest on £600 is basically zero, which isn't far off what the interest would be.
This thread is littered with complaints about the incompetence of pretty much all of the energy companies. Rightfully the Government shouldn't trust the data from them on who is entitled and who isn't. I've 100% certain the energy companies backoffice systems aren't programmed or set up in such a way to manage who does and does not get the handout. It has never happened in the history of energy, their billing systems can barely cope with giving the same discount to every person, let alone any intelligence needed to do decide that for each and every customer.
If this were a long-term prospect I'd agree with you, but given how little notice the energy companies had that this was happening and it's only lasting for 6 months and will probably never be seen again... It's just not feasible.
No fair enough but I think I've been fairly open that to me that's definitely a price worth paying for the convenience of not having to think about it and not running the risk of going overdrawn by accident.
Caporegime
It would be very simple for the energy companies to only apply it to accounts that are on the "current" pricing and not those on legacy pricing.
But what's the threshold? Maybe a customer locked a fixed rate that was only 1p cheaper than the current Government lock, should they get the £67 /month? If they don't, they'll pay more than someone getting the discount. It's a logical nightmare. Where do you set the line?
Only to say the government routinely draw arbitrary lines around things, it's almost their entire MO.
After reading some of the posts above I am glad I locked in October 2021 for a 3 year fixed. I managed to lock in until October 2024.
My electricity is at 27.98p per kWh and 24.87p per day standing charge. My gas is 6.64p per kWh and standing charge is 26.12p per day.
I could have gone for a 5 year fixed for a little more but I didn’t think things would be this bad at the time. I just remember looking at the Nat gas charts for Europe and seeing higher highs and higher lows. So took out a fixed instead of going variable.
My electricity is at 27.98p per kWh and 24.87p per day standing charge. My gas is 6.64p per kWh and standing charge is 26.12p per day.
I could have gone for a 5 year fixed for a little more but I didn’t think things would be this bad at the time. I just remember looking at the Nat gas charts for Europe and seeing higher highs and higher lows. So took out a fixed instead of going variable.
Soldato
Good job, who offers a 5yr fix. I would have taken the long term at one point but never saw that
Soldato
They are literally schrodlingers energy companies in many peoples eyes
Simultaneously utterly incompetent whilst simultaneously they should be able to perform lots of checks on a constantly changing user base with no resources*
*I'm sure they could, but at the end of the day we would be paying them to do it since its likely to require quite some checks, data extracts etc
Soldato
True, but 1) its literally only just happened that interest on normal accounts is worth taking into account, its been basically zero for 10 years, and 2) like always with market leading rates your forced to chase them
I know some people don't mind account switching etc, but it comes with potential agro every single time.
Caporegime
Its pretty simple. Whenever they talk about the price cap they relate it to "the average user". So if someone has a fixed rate that is lower than current fixed rate minus the handout from the gov then they don't get it. If they sit in the zone where they would need 50% of the handout to achieve parity then they get 50%.
There will never be a perfect system but great is the enemy of good and every time something like this comes up we have the same arguments about fairness and how you can decide these things. We already have to decide very similar things to this and at some point the government needs to come up with a decent scheme to work out what people should be getting because currently on any handout/discount they are just taking the easiest approach that costs billions every time they do it.
Where were these long term fixes?
Octopus have only been offering 1 year since I started checking which was sept 2021 I started checking. I skipped many of their fixes as they never quite made sense, if they were even 18 months I would have taken, I eventually ended up on agile and gas trackers which are pretty amazing in the current market but again only 12 months.
My plan for when my tariffs expire in summer, it will assume Octopus still let you exit penalty free is to monitor the daily prices, and whenever we enter a windy spell (cheap gas/electric) jump onto the higher capped trackers, and as the good spell ends jump back on SVR, the only limitation is you cant rejoin within 30 days of leaving.
Caporegime
We make companies do all sorts of things. Requiring energy companies to be able to do certain things with their customers and their information really isn't asking too much. If they can't do it currently they they should be given a timescale to make the changes or be fined heavily. They are not poor and they can 100% do it. They just won't because there is nothing in it for themselves.
Soldato
The £67 is a cap as well isnt it?
I mean the vas majority would be paying so much that its at £67 but in theory someone could be due less than £67 but more than zero, and then their deal could end mid month etc etc
I suppose the companies could have been asked to look at people who had deals that went beyond end of March that were locking in before say mid 22. There wouldnt be that many and they would tend to be the ones who had an excessively good deal locked in compared to current pricing.
At the time SSE offered a 5 year fixed. They had 1 year, 3 years and 5 years from what I remember. I took the middle option of 3 years. I think the 5 year option was about 20% more per kWh for gas and electric. I wish I had taken that now.
My logic at the time was I could see gas and electric going up in price but obviously didn’t know why. So I took a fixed. If prices stabilised I would have paid the penalty fee to end the fixed term early and go back to a variable rate. But then the war in Ukraine happened not long after I took out a fixed product and prices just kept climbing.
I do think they have peaked or will peak around April and then we will steadily come back down for gas and electric. Much like diesel and gas prices have come down since their peak.
I don’t think we will go back to 2020 prices though. Or at least for a long time. But a new normal range will be reached for both price wise that is a fair amount lower than todays prices.