Energy Prices (Strictly NO referrals!)

Zenduri said:
The reason i ask is because Change of supply, erroneous transfers, and the surrounding regulation was my bread and butter for about 10 years and i still keep my nose in that work from time to time and i've never heard of 1 supplier compensating another supplier if the customer switches to them. There are some instances where one supplier will cover some costs to a customer who has moved to another but thats specifically around Erroneous Transfers which is regulated out the ****
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Found it its mentioned in this article https://www.moneysavingexpert.com/n...s-to-change-the-energy-price-cap-every-three/

Its the market stabilisation charge
Moved from 30% price drop to 10% drop (ie amount the cost has to move by before it kicks in)
And compensation moved from 75% of the cost of the energy to 85%
 
Mercenary Keyboard Warrior said:
Found it its mentioned in this article https://www.moneysavingexpert.com/n...s-to-change-the-energy-price-cap-every-three/

Its the market stabilisation charge
Moved from 30% price drop to 10% drop (ie amount the cost has to move by before it kicks in)
And compensation moved from 75% of the cost of the energy to 85%
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Interesting. Seems it was brought in 4 months ago as a temporary thing which would explain why its not been on my radar. Only kicks in if the offered price is 10% or more lower than the ofgem cap. The compensation to the other supplier is really only there to protect smaller suppliers who have bought at high prices and are then being undercut by the bigger ones who might be offering cheaper prices. Its more a move to keep competition alive but considering the market is stagnant/dead at the moment and prices wont be dropping anytime soon, this wont really apply.
 
Zenduri said:
Interesting. Seems it was brought in 3 months ago as a temporary thing which would explain why its not been on my radar. Only kicks in if the offered price is 10% or more lower than the ofgem cap. The compensation to the other supplier is really only there to protect smaller suppliers who have bought at high prices and are then being undercut by the bigger ones who might be offering cheaper prices. Its more a move to keep competition alive but considering the market is stagnant/dead at the moment and prices wont be dropping anytime soon, this wont really apply.
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I think its the opposite.
Its to protect the big boys who have had to pre purchase at current high prices.

Imagine next year, Russia/Ukraine is fixed, prices plummet by 85%, or to 1/6th of current price say.
New energy companies get setup offering current market price (plus a little markup), virtually every single customer of the big guys tries to move to these energy companies. Would be total market chaos.
So now the new guy has to compensate 85% of the price diff so they can only actually quote you a price thats a little lower and switching demand will be greatly supressed.
Whilst we as consumers have to all share the bill for the expensive utilities.
 
Just looked at my deals with OVO(just electric) and they want me to fix for 2 years on £101 a month up from £58, the 1 year fix is £119 a month, I used to pay £27 and be well in credit!!!

Single person, 1 bed flat.
 
Mercenary Keyboard Warrior said:
I think its the opposite.
Its to protect the big boys who have had to pre purchase at current high prices.

Imagine next year, Russia/Ukraine is fixed, prices plummet by 85%, or to 1/6th of current price say.
New energy companies get setup offering current market price (plus a little markup), virtually every single customer of the big guys tries to move to these energy companies. Would be total market chaos.
So now the new guy has to compensate 85% of the price diff so they can only actually quote you a price thats a little lower and switching demand will be greatly supressed.
Whilst we as consumers have to all share the bill for the expensive utilities.
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Hoping at some point it still fall back to historical levels
 
Zenduri said:
Interesting. Seems it was brought in 4 months ago as a temporary thing which would explain why its not been on my radar. Only kicks in if the offered price is 10% or more lower than the ofgem cap. The compensation to the other supplier is really only there to protect smaller suppliers who have bought at high prices and are then being undercut by the bigger ones who might be offering cheaper prices. Its more a move to keep competition alive but considering the market is stagnant/dead at the moment and prices wont be dropping anytime soon, this wont really apply.
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Looks clear to me ofgem priority is now to protect the companies it regulates, ofcom also has this in its remit.

But at the moment its a moot point as prices are not dropping anytime soon, even if by some miracle the Ukraine war ended, things wont be going back to where they were, prices were already going up before that started, I think the best chance of relief for consumers in the short to medium term is if they rally together forcing a political intervention.
 
Puzzled said:
This is the best fix I've been offered.

Elec:
SC: 47.86p /day
Unit rate: 57.72p /kwh

Gas:
SC 27.22p /day
Unit rate: 17.26p / kwh

:eek: :(
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you may be better off rubbing two sticks together tbh. Anyone who either doesnt have young kids or isnt over 60 tbh is probably going to be ok, less comfortable perhaps but not the worst scenario any time russia is involved. Im still wondering about chip shortage, besides many other commodities Ukraine was somehow a major supplier of one component to chip design and manufacture apparently. A spike in chip prices again probably hits me worse personally
 
chrcoluk said:
the best chance of relief for consumers in the short to medium term is if they rally together forcing a political intervention.
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This seems to come up a lot in this thread but I think you are being hopelessly optimistic if you think other people are going to riot so that the government pays your power bill.

No doubt there will be some financial assistance but other than that you’ll just need to take on a payment plan for any debt you cant cover.

Will be interesting to see what happens to people with pre payment meters.
 
n111ck said:
This seems to come up a lot in this thread but I think you are being hopelessly optimistic if you think other people are going to riot so that the government pays your power bill.

No doubt there will be some financial assistance but other than that you’ll just need to take on a payment plan for any debt you cant cover.

Will be interesting to see what happens to people with pre payment meters.
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I am not optimistic, I think its unlikely, but I cant see any other kind of large drop in cost coming via other means. Its only going to be public pressure.
 
when i keep seeing people should cut back on electric all over the news, there is only so much people can cut back, if somebody has an electric oven , electric shower then you have no option unless you just have a bath full of cold water and eat buttered bread for your meals, or use no electric at all and still get shafted with standing charges which still make me laugh, in what way dose a standing charge have to do with the cost of gas / oil now.
 
ozaudio said:
when i keep seeing people should cut back on electric all over the news, there is only so much people can cut back, if somebody has an electric oven , electric shower then you have no option unless you just have a bath full of cold water and eat buttered bread for your meals, or use no electric at all and still get shafted with standing charges which still make me laugh, in what way dose a standing charge have to do with the cost of gas / oil now.
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i tend to use the microwave ,followed by air fryer ,no good for pizza though ,also i live alone so soap dodging is a weekend option :)
 
chrcoluk said:
I am not optimistic, I think its unlikely, but I cant see any other kind of large drop in cost coming via other means. Its only going to be public pressure.
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Prices will come down eventually - it makes more sense for the individual to take on the debt and pay off over time rather than adding to public debt for everyone to pay off probably via tax increases.
 
n111ck said:
Prices will come down eventually - it makes more sense for the individual to take on the debt and pay off over time rather than adding to public debt for everyone to pay off probably via tax increases.
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That kind of thinking is ok I guess if you think everyone has the same ability to pay.

Your idea might be ok for some but probably isnt realistic for the poorest. The people defaulting wont be paying any payment plans as they still have to pay for ongoing usage, its not the same as a defaulted credit card where the creditor can cut you off from using more credit. The debt will be written off and that will be paid by others anyway like we all paying now for the failed companies. Like it or not this burden will be spread and government subsidised, there is no pretending it wont. The energy levies last multiple years.
 
chrcoluk said:
That kind of thinking is ok I guess if you think everyone has the same ability to pay.

Your idea might be ok for some but probably isnt realistic for the poorest. The people defaulting wont be paying any payment plans as they still have to pay for ongoing usage, its not the same as a defaulted credit card where the creditor can cut you off from using more credit. The debt will be written off and that will be paid by others anyway like we all paying now for the failed companies. Like it or not this burden will be spread and government subsidised, there is no pretending it wont. The energy levies last multiple years.
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Sure there will need to be extra help for the genuine poor but for most people a payment plan or sticking it on a credit card will work.
 
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