Energy Prices (Strictly NO referrals!)

[fez]

Which of the previous failed energy suppliers did the government bail out?

Just the biggest one, Bulb. Its OK though because somehow its costing the taxpayer £3bn...

No idea how because Bulb should be treated like a failed energy company and everyone with them should be shunted onto a similar rate to everyone else. I understand that the government are covering the costs of buying the required gas etc but the customers should be paying them for it.

None of the other companies are going to lose billions over the course of such a short period so why would the government? Makes zero sense. What am I missing?

 

[Doobedoo]

Which of the previous failed energy suppliers did the government bail out?

It’s a little bit different now. All the small irrelevant companies have been weeded out, the ones left are much larger in size and much more likely deemed to be too big to fail. Kind of like the banking sector was in 2008.

 

[Zenduri]

It's the way the country works. Have nothing but a state pension? Get all sorts of help.
Save for retirement? You get nothing.

Thats tilting too far the other way. If people didnt have the ability to save for retirement and have to now rely on state pension then i have no qualms about supporting them but if they had available funds to save but spunked it away then thats a different matter

 

[200sols]

Just the biggest one, Bulb. Its OK though because somehow its costing the taxpayer £3bn...

No idea how because Bulb should be treated like a failed energy company and everyone with them should be shunted onto a similar rate to everyone else. I understand that the government are covering the costs of buying the required gas etc but the customers should be paying them for it.

None of the other companies are going to lose billions over the course of such a short period so why would the government? Makes zero sense. What am I missing?

We are paying the same as everyone else, everyone at bulb has always been on the SVR. FWIW they used to charge less than the cap years ago, but it was always a variable rate. Now everyone is on the maximum allowed.

 

[fez]

I am personally against helping people based on debt, as the problem is debt isnt going to be a reliable of indicator of income level or means to pay, the level of responsibility is a huge factor. I am also against offloading decisions to councils, as I think withholding support funds for just council house tenants is wrong as well. Similar with support schemes that require referrals, my council only does referrals from social services and council house officers.

There has to be some level of "someone in your position, with your income shouldn't be in position X and if you are then its your fault". We seem to be far more concerned with ignoring the cause and just dealing with the outcomes which is a short term fix at best and at worst is teaching people to be financially irresponsible.

 

[fez]

We are paying the same as everyone else, everyone at bulb has always been on the SVR.

So how is it costing the country so much money or is that just a headline grabbing figure?

 

[200sols]

So how is it costing the country so much money or is that just a headline grabbing figure?

No idea but we don't get cheap energy. IIRC bulb never offered fixed tarrifs.

 

[Zenduri]

Just the biggest one, Bulb. Its OK though because somehow its costing the taxpayer £3bn...

No idea how because Bulb should be treated like a failed energy company and everyone with them should be shunted onto a similar rate to everyone else. I understand that the government are covering the costs of buying the required gas etc but the customers should be paying them for it.

None of the other companies are going to lose billions over the course of such a short period so why would the government? Makes zero sense. What am I missing?

None of the big suppliers could stomach the financial cost to take on all of bulb's customers, not even if they were broken up and split into smaller pieces which is why it went into special admin run by the Gov and to all those people who harp on about nationalising energy suppliers... Bulb cost was originally expected to be £1.5bill and now £3bill +..... dont worry though...nationalised energy companies are what will save us....

The bit that really then makes me laugh is the same people harping on about nationalising energy are now whining about increased standing charge..... which has been raised to cover the cost of running a nationalised energy company

 

[Uther]

So how is it costing the country so much money or is that just a headline grabbing figure?

Probably didn't help that the boss was still getting paid 250k even after the bail out.

 

[413x]

So how is it costing the country so much money or is that just a headline grabbing figure?

Because the administration involved and for last year the cap is costing the owners money due to the lag.

Untill the price comes down the cap will be costing suppliers. After the prices come down (if!) it will be profitable. Assuming you buy gas on the day for that price. Which doesn't happen.

 

[Foghorn Leghorn]

Non payment of energy isn't on your credit file I don't think. Does your energy firm appear on your credit report? Its not on mine. My phone contract is. My credit cards are, bank accounts yes. Not energy firm.

They would have to commence debt recovery and a CCJ only appears if it gets to court and you dont pay before then. If millions of people are doing it, its impossible to take them all to court.

This is all about scale. The things that work normally won't work when millions refuse to pay.

Both my energy companies are on my credit file, miss a payment and expect a big drop in score....

 

[chrcoluk]

There has to be some level of "someone in your position, with your income shouldn't be in position X and if you are then its your fault". We seem to be far more concerned with ignoring the cause and just dealing with the outcomes which is a short term fix at best and at worst is teaching people to be financially irresponsible.

A lot of things have encouraged this type of behaviour, Bankruptcy and CCJ laws, Liquidation laws, PLC ownership. Its something that happens all over the social ladder.
Of course some people will have no choice, but I know that wasnt the case in the example I gave.

 

[fez]

Because the administration involved and for last year the cap is costing the owners money due to the lag.

Untill the price comes down the cap will be costing suppliers. After the prices come down (if!) it will be profitable. Assuming you buy gas on the day for that price. Which doesn't happen.

That £3bn figure still doesn't make sense though. Thats basically £2000 per customer they are writing off and this all happened at the end of November so there isn't a popsicles chance that they were on the hook for that much. I can believe its £3bn in costs but I would assume that they will make back a large chunk of that through bills no?

 

[Doobedoo]

The bit that really then makes me laugh is the same people harping on about nationalising energy are now whining about increased standing charge..... which has been raised to cover the cost of running a nationalised energy company

Well why wouldn’t you be upset with having to bail out yet another private companies failures. Do shareholders, management and dividend recipients ever have to chip in? No they ride off into the sunset counting their loot, plotting where they will end up next. My money is as an mp or on the board of ofgem.

 

[Surveyor]

It’s a little bit different now. All the small irrelevant companies have been weeded out, the ones left are much larger in size and much more likely deemed to be too big to fail. Kind of like the banking sector was in 2008.

Assume you're right and any companies going bust due to non-payment will go into special measures and be government funded. That makes all taxpayers victims.

 

[Doobedoo]

Assume you're right and any companies going bust due to non-payment will go into special measures and be government funded. That makes all taxpayers as victims.

Taxpayers have always been the victims. Vast amounts of public money has been siphoned of into the private sector for years.

 

[danlightbulb]

Both my energy companies are on my credit file, miss a payment and expect a big drop in score....

which suppliers and which credit score service?

I just looked at mine (clearscore) and nothing is there from Eon Next or EDF.

 

[Ayahuasca]

Taxpayers have always been the victims. Vast amounts of public money has been siphoned of into the private sector for years.

Near enough everyone pays tax, so we're all victims?

 

[413x]

That £3bn figure still doesn't make sense though. Thats basically £2000 per customer they are writing off and this all happened at the end of November so there isn't a popsicles chance that they were on the hook for that much. I can believe its £3bn in costs but I would assume that they will make back a large chunk of that through bills no?

I think it could be 2k a customer.
Add on pay offs for ceos etc. Add on they were in debt. Having to buy gas etc at inflated future prices, lawyers etc being paid. General government corruption.

Its not a million miles away.

 

[Surveyor]

Taxpayers have always been the victims. Vast amounts of public money has been siphoned of into the private sector for years.

But according to @danlightbulb non-payment is a victimless.