This is getting ridiculous (energy prices - Strictly NO referrals!)

[Doobedoo]

Gas prices seem to be falling like a stone. would it be possible for the Ofgem price cap to go under the government price cap? And if so would they honor it?

But we have been told prices are stupidly high because supply has been severely reduced, to the point that we won’t have enough to go around. Hence why high prices are justified. What has changed?

 

[200sols]

But we have been told prices are stupidly high because supply has been severely reduced, to the point that we won’t have enough to go around. Hence why high prices are justified. What has changed?

Europe managed to fill its storage early and to higher levels than expected, talk of price caps and energy rationing, measures to cut usage in Europe by 10-15%. Its all helped a bit. Prices are still way higher than they used to be though.

 

[Devilman]

But we have been told prices are stupidly high because supply has been severely reduced, to the point that we won’t have enough to go around. Hence why high prices are justified. What has changed?

Most likely it is to do with a large majority of Europe now reporting "adequate" or "sufficient" stockpiles to see through the winter.

Then you have the UK, which stripped back our gas storage to a few 50KG propane tanks laying around the back of someone's shed.

 

[jpaul]

Government is limiting business energy liability though, so they really need to be on a fixed contract (crap wording like their domestic press release though)

Government outlines plans to help cut energy bills for businesses

Support for households, businesses and public sector organisations facing rising energy bills has been unveiled.

www.gov.uk

To administer support, the Government has set a Supported Wholesale Price – expected to be £211 per MWh for electricity and £75 per MWh for gas, less than half the wholesale prices anticipated this winter – which is a discounted price per unit of gas and electricity. This is equivalent to the wholesale element of the Energy Price Guarantee for households. It includes the removal of green levies paid by non-domestic customers who receive support under the scheme.
...
The level of price reduction for each business will vary depending on their contract type and circumstances:

• Non-domestic customers on existing fixed price contracts will be eligible for support as long as the contract was agreed on or after 1 April 2022. Provided that the wholesale element of the price the customer is paying is above the Government Supported Price, their per unit energy costs will automatically be reduced by the relevant p/kWh for the duration of the Scheme. Customers entering new fixed price contracts after 1 October will receive support on the same basis.
• Those on default, deemed or variable tariffs will receive a per-unit discount on energy costs, up to a maximum of the difference between the Supported Price and the average expected wholesale price over the period of the Scheme. The amount of this Maximum Discount is likely to be around £405/MWh for electricity and £115/MWh for gas, subject to wholesale market developments. Non-domestic customers on default or variable tariffs will therefore pay reduced bills, but these will still change over time and may still be subject to price increases. This is why the Government is working with suppliers to ensure all their customers in England, Scotland and Wales are given the opportunity to switch to a fixed contract/tariff for the duration of the scheme if they wish, underpinned by the Government’s Energy Bill Relief Scheme support.
• For businesses on flexible purchase contracts, typically some of the largest energy-using businesses, the level of reduction offered will be calculated by suppliers according to the specifics of that company’s contract and will also be subject to the Maximum Discount.

 

[SaBBz]

Has anyone who is on Eon Next got a letter or response back about the standard charges and or response to those who just fixed before govt announcement?

I contacted them straight away after fixing and when the govt suggested they would intervene, they told me they'd be in touch with all their customers who recently fixed to let them know what is happening, with potential of changing the deal.

Still no word.

My switch to Eon Next Online v17 is due to commence on 24th September. I’ve been holding off to see what they’ll to but given I’d be paying a fair bit more for 7 days anyway I’ve decided to just go back to the flex tariff now.

 

[Doobedoo]

Europe managed to fill its storage early and to higher levels than expected, talk of price caps and energy rationing, measures to cut usage in Europe by 10-15%. Its all helped a bit. Prices are still way higher than they used to be though.

So prices are now just artificially high then? Just some of that good old profiteering….Business as usual I guess, funded by the taxpayers blank chequebook being handed directly to energy producers.

 

[Zenduri]

My switch to Eon Next Online v17 is due to commence on 24th September. I’ve been holding off to see what they’ll to but given I’d be paying a fair bit more for 7 days anyway I’ve decided to just go back to the flex tariff now.

They're trying a workaround today to get the new prices put into the system. Couple of updates have failed so far so they are trying a workaround today. Fingers crossed the pricing should be updated by the end of today

 

[b0rn2sk8]

So prices are now just artificially high then? Just some of that good old profiteering….Business as usual I guess, funded by the taxpayers blank chequebook being handed directly to energy producers.

No. Prices are still high because there is no Russian gas on the European market.
Demand is still greater than supply, its really that simple.

They are sourcing LNG from the US and Australia and shipping it via sea, that’s expensive compared to getting via a pipe from Russia.

Edit: if winter is particularly harsh, they could still be on a spot of bother.

 

[Freakbro]

Think I heard OPEC were looking at cutting oil production as well to keep the price of oil up where it is.

 

[SaBBz]

They're trying a workaround today to get the new prices put into the system. Couple of updates have failed so far so they are trying a workaround today. Fingers crossed the pricing should be updated by the end of today

Thanks. I was just worried that it would take them a while to switch me back. I expected the unit prices to come down to near the cap (potentially just above it though), however the standing charges on the fix were the same as the current cap (so slightly cheaper than the new Oct cap). Probably only pennies in it either way though so I figure the variable rate is probably best for now.

 

[Mrwong]

Well no, it is still fraud whether he gets caught or not.

Fraud is happening every day to every individual in this country.

 

[benjii]

Has the PM announced officially that there will be a energy price cap freeze for 1 year?

Two years.

Under new plans, a typical UK household will pay no more than £2,500 a year on their energy bill for the next two years from 1st October, through a new Energy Price Guarantee which limits the price suppliers can charge customers for units of gas.

Government announces Energy Price Guarantee for families and businesses while urgently taking action to reform broken energy market

Prime Minister Liz Truss sets out decisive action to support people and businesses with their energy bills.

www.gov.uk

 

[montymint]

New prices in for October, and with the new energy price guarantee coupled with the £400 support, we are now being asked to pay £40 less per month.

Wasn't expecting that...

For context, it's a 4 bed detached house (gas central heating) and we're now paying £211 per month for gas and electricity.

Mines gone up nearly 200 pm.

However BG did manage to "lose" my account for over a month so things have become massively skewed.

 

[NickK]

Think I heard OPEC were looking at cutting oil production as well to keep the price of oil up where it is.

That basically means they can milk the demand - nothing wrong with economics. I blame the lack of diversity to reduce the risk of impact falling on those that use/promote a single source.

 

[jpaul]

Pound is till cratering as well, so probably need to fill the tank up,
Saudi seem to have initiated the production cut (funeral controversy?), so wonder whether UK arms export prices can be tweaked in retribution, or are the contracts based (shortsightedly) on dollars

 

[Dirk Diggler]

Mines gone up nearly 200 pm.

However BG did manage to "lose" my account for over a month so things have become massively skewed.

Increased by 200 or increased to 200? As I say, we are now paying 211 so I would expect that to be average?

 

[montymint]

Increased by 200 or increased to 200? As I say, we are now paying 211 so I would expect that to be average?

by, they want the best part of £350 a month up from £130

 

[Manbatius]

Finally had the dreaded octopus email.

Electricity
Unit 50.9
Day 48.29

Gas
Unit 14.63
Day 26.84

A cool £380 a month. Something seems off to me though, the figures above are octopus flexible. I thought it was going to be a bit cheaper than the rates above from what I had seen quoted unit rate elsewhere.

 

[Dirk Diggler]

Finally had the dreaded octopus email.

Electricity
Unit 50.9
Day 48.29

Gas
Unit 14.63
Day 26.84

A cool £380 a month. Something seems off to me though, the figures above are octopus flexible. I thought it was going to be a bit cheaper than the rates above from what I had seen quoted unit rate elsewhere.

Are you prevented from switching for any reason?

 

[Manbatius]

Are you prevented from switching for any reason?

Nope, having said that. Don't think anyone else Is taking new customers. No exit fees that I'm aware of anyway.