Soldato
Temperature was in double figures all night last night in the Highlands
This is getting ridiculous (energy prices - Strictly NO referrals!)
- Thread starter DXP55
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Heating is permanently off here - I just put more clothes on if I'm cold or wrap up in a blanket.
Soldato
Grim news for people not locked into a decent deal...
news.sky.com
Cost of living: ScottishPower boss warns of another £900 increase in bills and calls for action 'now'
Keith Anderson, who leads ScottishPower, called for families to receive £1,000 to help with growing energy bills before families are affected in October.
news.sky.com
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It's going to get to the point where people just can't pay the bills any longer.
Soldato
This is the problem, with the expected increase in October most supplier are expecting that 30-40% of their customers wont be able to pay their bills. If this truely happens to this extent or anywhere near this extent, then expect plenty more suppliers to go under and I dont think even the big ones will be safe this time. If the market collapses or some of the big suppliers fail no doubt there will be those shouting great nationalise them (like we have done with Bulb) but then will also complain that their standing charge goes up again to pay for the nationalised suppliers (as is the case with Bulb)
Still amazes me that people complaining about the standing charge being so high and spouting claims that the suppliers are using the standing charge to massage their profits due to the price cap but what they dont realise is you're, paying £0.1863 PER DAY on your standing charge to offset the cost of nationalising Bulb. Thats why the standing charge has gone from 25-30p to 45p and upwards.
There is a danger.
Also. These are companies turning a profit. What's to stop them (this is a question) saying.. "we are fed up of making a loss, we are out".
Also don't think the big boys are immune. Especially with this traction building of people just not paying.
It might be meaningless, but to those people who didn't understand what the cap was are hardly going to understand what it means that a rate of X at the new cap will be Y. Sometimes it's just easier to use a typical average from a 3 bed house with 2 adults / 2 children occupants because that's the typical numbers a family will see.
I always look past the numbers anyway, as our usage is less than a typical 3 bed house, and having tracked usage means I can easily work out what I'd be expected to pay based on different SVR rates.
Soldato
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As it stands, are the increases in October on unit prices only or are they going to increase standing charges also?
Soldato
Damn, mine's been off for a full two months!
Just had to order more heating oil at £1/litre, double the usual rate (it's why I shut the heating off a couple of weeks earlier than I might otherwise: prices were even more insane at that point - something like £1.70)
Soldato
This winter will be awful for people in the lower household income brackets. Probably the whole of the bottom 20% or so of households will struggle a lot.
The energy companies will be fine though, mostly. The survivors are coining it in right now and preparing for bad debts escalating.
The energy companies will be fine though, mostly. The survivors are coining it in right now and preparing for bad debts escalating.
I'm only paying 5p a unit for gas so I've had it on a bit more.
If I was paying market rate.. Yeah would be off already
still amazes me too - that unit prices are not tiered for those on smarter meters so that lighter users pay the same overall price per unit as high users, whilst maintaining the minimum (standing, 0 use) price per day.
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like media discussed today futures market currently has gas price stabilized through xmas 2022, but, suppliers who purchased that xmas gas in march panic may have now overpayed.
There are lots of people currently on fixed tariffs who will be on the flexible tariffs soon. Lots of them have not budgeted the change in their plans so they're in for a rude awakening.
If your fixed tariff is coming to an end before/during this winter, it's best to set aside some extra money now to give yourself the extra funds you'll need in winter.
If your fixed tariff is coming to an end before/during this winter, it's best to set aside some extra money now to give yourself the extra funds you'll need in winter.
Soldato
No offence or anything but can you clarify your first comment as ive tried reading it 3-4 times and im not quite following it? Are you are talking about why dont we have it so everyones on smart meters and we charges higher users more but less standing charges and lower uses less but higher standing charge? If thats the case, then for large business who are often on bespoke tarrifs they often have eitherstupidly high standing charge or zero. Think the highest business standing charge i've seen was about £12 a day but the unit price was really low like 2.2p or something unit cos on the gas but they were a huge factory.
Couple of reasons why we are ****** this winter.
Big suppliers have to buy 12-14 months in advance as per part of their license agreement where as smaller suppliers can buy on day or month spot prices. This means the smaller companies can charge much less when gas and electric is cheap as they are reacting to price changes considerably quicker. So for the last few years we've enjoyed cheap prices from all these pop up suppliers with no capital behind them, taking advantage of the lack of regulation for smaller companies and the ability for them to react quickly and benefit from quick price changes. The downside to this, as we have seen with 30 suppliers going under, if the prices rocket, they make staggering losses and dont have the money to ride out the storm.
Then we look at the bigger suppliers who cant buy on spot prices (due to regulaiton) and have to buy a year plus in advance which means the prices aren't as competetive and changes in the energy markets arent reflected in your bills as they need to recoup the money they spent buying the energy in advance. This then brings us to the current situation where bigger suppliers have had to buy at insane prices and now need to sell the energy at least at a break even price which means a rise in everyones bills to account for **** poor regulation and restrictions forcing the situation.
Ofgem price cap is also calculated off the prior 6 months energy prices so in September when they start to look at the price cap for October, they will be factoring the insane Feb and March prices which will push the overall average price up for the next cap even though prices have already dropped to less insane figures.
Soldato
My elderley parents currently pay £60 a month (thats gas and elec combined) and their deal runs out in August. I've already warned them their gas rates will at least triple and the electric will at least double. They arent well off by any means but they are comfortable enough to stomach that kind of increase and i think it helps that they are already really sensible about their energy usage and keeping the bungalow warm. My fathers attitude has always been "if im cold ill put the heating on, sod the cost, ill deal with it later"
However i do feel for people that are or will be in fuel poverty soon as i couldnt imagine not putting the heating on when i need it. At the same time though, as demonstrated REALLY well by people on these forums, a lot of people have no idea about energy usage or what they use and seem blind to changes they can make to their behaviours to save money.
The £200 loan is absurd when the cap next year is projected to be only 14% lower than this October's price cap.
Next year we'll have to start paying back the £200 levy as well.
Soldato
By christmas we will all be singing
The roof, the roof, the roof is on fire
(We don't need no water, let the m burn)
(Burn m burn)
The roof, the roof, the roof is on fire
(We don't need no water, let the m burn)
(Burn m burn)