Energy Prices (Strictly NO referrals!)

So I assume that once the money has been recovered for all those in credit on failed companies the standing charge will drop down then? Excuse me if I don't hold my breath:p. Can't believe how much some of these ceos earn managing these companies.
 
was £68 per customer per year covering the SOLR and collapses.

How much will the profits/dividends dropped on the big 4 survivors though, who have the reserves to ride this out -
are their shareholders happy , French EDF shareholders aren't with Macron's approbation.
 
Haggisman said:
Yeah, it's kind of ironic really... The measure which was put in place to protect consumers has had the effect of triply punishing those who actually put in the efforts to shop around for the best deal and those who do their best to cut their usage.

1) It has resulted in higher prices for people who shop around because the energy companies can no longer make more money from lazy people who stay on the same terrible tariff.
2) It has result in higher prices for everyone (including those who shop around) because they now need to make up the shortfall in credit balances from suppliers going bust.
3) It has resulted in higher standing charges which disproportionally punishes those who try to reduce their usage and save money.
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Yet another success story for price controls lol, and some people on team Labour want to introduce rent caps, these measures always result in economic disaster, history repeating itself over and over again.
 
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Puzzled said:
Sadly the government is quite complacent in letting those on lower incomes suffer, I think when those on middle incomes start to feel the pain then the government will know its in trouble.

It is insane how expensive its going to be this year and I wouldn't be surprised if we have people protesting in the streets, messing with meters and just refusing to pay. Will cause a lot of harm to wider economy as well with people cutting back to the essentials. Could be an argument that you'd do less harm by subsidising energy costs now and pay it back over the decades to come when we have reduced our dependency on oil / gas (or when prices calm down).
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Pretty much this, thats when we might see action.

It will be interesting to see if they try to raise the cap before October. If they do it sends a very clear message.
 
chrcoluk said:
Pretty much this, thats when we might see action.

It will be interesting to see if they try to raise the cap before October. If they do it sends a very clear message.
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unless that message is that when politics and economics clash, economics always wins, no-one will learn anything.
 
Zenduri said:
Given how volatile the energy markets are at the moment, it makes sense though. No point having a price cap fixed for 6 months if every energy supplier goes under before the next cap
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For as long as these suppliers are selling their own capped products, the merit of them wanting an effective cap removal on SVR doesnt have much merit.

Is ofgem here to protect consumers or the businesses?
 
chrcoluk said:
For as long as these suppliers are selling their own capped products, the merit of them wanting an effective cap removal on SVR doesnt have much merit.

Is ofgem here to protect consumers or the businesses?
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Energy providers sell fixed rate products, currently at substantially higher rates than the price cap. Which energy providers sell capped products?

Edit: Typo
 
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Puzzled said:
Will cause a lot of harm to wider economy as well with people cutting back to the essentials. Could be an argument that you'd do less harm by subsidising energy costs now and pay it back over the decades to come when we have reduced our dependency on oil / gas (or when prices calm down).
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We were just talking about that here, we're getting rid of Disney, nowtv and Amazon prime. It's not that we can't afford them just that we don't make much use of them and the saving will offset some of the energy price increases.

I imagine many people will be doing the same too.
 
krooton said:
Some kind of tier pricing ala income tax is the only thing I can see vaguely working, and even then it's not great.

The first x kwh used per day (or month) is charged at y rate, then more usage at a higher z rate, etc.

The problem is working out the tier thresholds, and allowances for things like having kids, etc.

It just becomes too complex to actually enforce.
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Thats why a social tariff might make sense, funded via general taxation, which removes a lot of the complexity, but it could also be combined with the more you use the more you pay system as well.

The only issue then is on the more you use the more you pay, do you take account of families, I would increase the amount you can use before it rises when children live at the property, but not if its just extra adults, as extra adults usually means more ability to pay. The paper work for managing this stuff can work similar to WHD, if you have children you inform your supplier, they check with DWP if you getting child benefits for X amount of children, if yes, then your tariff is adjusted.
 
Surveyor said:
Energy providers sell fixed rate products, currently at substantially higher rates than the price cap. Which energy providers sell capped products?

Edit: Typo
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Higher than the cap when first launched, but then fixed for duration of the tariff,, is it higher by the end of it?

You think if ofgem were adjusting the cap more often such as every month none of these fixed rates would be below it? There is many out there right now on loss making fixed rate products for 2-3 year periods, if the cap was raised or even removed then the question would have to come about those fixed rate tariffs. There will be people who made a decision assuming the cap is set for 6 months.

You cant raise an argument that the SVR cap is going to bankrupt energy suppliers without also looking at the fixed rates. The ones that went bust early on were likely due to fixed rates they couldnt honour.
 
chrcoluk said:
Higher than the cap when first launched, but then fixed for duration of the tariff,, is it higher by the end of it?
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That's an impossible question to answer.

chrcoluk said:
You think if ofgem were adjusting the cap more often such as every month none of these fixed rates would be below it? There is many out there right now on loss making fixed rate products for 2-3 year periods, if the cap was raised or even removed then the question would have to come about those fixed rate tariffs. There will be people who made a decision assuming the cap is set for 6 months.
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I don't know what the energy companies would do if the situation was completely different than it is now.

Customers and energy providers will have made decisions based on the situation at the time and their assessment of what they think would happen in the future. If the situation changes I don't see how that gives either party the opportunity to undo agreements they freely entered into.

chrcoluk said:
You cant raise an argument that the SVR cap is going to bankrupt energy suppliers without also looking at the fixed rates. The ones that went bust early on were likely due to fixed rates they couldnt honour.
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I don't understand the point you're making but it doesn't seem to have anything to do with anything I've posted.
 
Question is already answered, there is members of this community on caps still below the October 21 rate.

I dont support cancelling the 6 month SVR caps, that much is clear, the companies are just going to have to deal with it, like we all are having to deal with the huge bills. The only way I would support it is if at the same time the government subsidised household bills at the very least equal to the increases that would happen to the least able people.
 
chrcoluk said:
Question is already answered, there is members of this community on caps still below the October 21 rate.
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That's a fortunate position to be in and those deals aren't going to get changed/scrapped.

chrcoluk said:
I dont support cancelling the 6 month SVR caps, that much is clear, the companies are just going to have to deal with it, like we all are having to deal with the huge bills. The only way I would support it is if at the same time the government subsidised household bills at the very least equal to the increases that would happen to the least able people.
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How do you propose such a system of subsidies is managed?
 
Surveyor said:
That's a fortunate position to be in and those deals aren't going to get changed/scrapped.



How do you propose such a system of subsidies is managed?
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Already posted it. You can read it if you want.

For what its worth I dont think deals should be scrapped, I think both deals and 6 month SVR should remain.
 
chrcoluk said:
Already posted it. You can read it if you want.
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The thread is quite big and you've posted quite a few times; link, quote or post number please.

chrcoluk said:
For what its worth I dont think deals should be scrapped, I think both deals and 6 month SVR should remain.
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The price cap interval is up for discussion but ultimately the decision is for government/ofgem. Deals already agreed won't be changed no matter what anyone thinks.
 
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