Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Consumerist
    • By Consumerist 4th Oct 17, 1:44 PM
    • 4,644Posts
    • 2,309Thanks
    Consumerist
    Energy price cap - what's the future
    • #1
    • 4th Oct 17, 1:44 PM
    Energy price cap - what's the future 4th Oct 17 at 1:44 PM
    So, from the PM's speech at conference, the Conservatives intend to cap energy prices.

    Does this mean the end of better deals for those who switch tariff or supplier on a regular basis?

    This could be bad news for regular switchers but on the plus side it could also mean that fixed deals might look relatively unattractive compared to variables. If more of us were on variable deals the energy suppliers would be less able to hold us hostage to those early-termination fees which prevent the market being competitive.

    In the long run the energy cap just might make the market more competitive - something which Ofgem has singularly failed to achieve by it's petty tampering.
    Warning: In the kingdom of the blind, the one-eyed man is king.
Page 1
    • Bark01
    • By Bark01 4th Oct 17, 1:59 PM
    • 763 Posts
    • 242 Thanks
    Bark01
    • #2
    • 4th Oct 17, 1:59 PM
    • #2
    • 4th Oct 17, 1:59 PM
    the cap will be on standard tariffs, there will still be cheaper tariffs available but they will become more expensive.

    No way will it make it more competitive. Competition is based on price, all this do will mean the price differential is a lot less. Which will give people less reason to switch.

    I very much doubt the cancellation fees stop the vast majority of people from switching.

    Wholesale costs are only going one way so variable tariffs make less sense for consumers.

    Variable fixed period or traker tariffs can have cancellations fees too.
    • Hengus
    • By Hengus 4th Oct 17, 2:13 PM
    • 4,363 Posts
    • 2,561 Thanks
    Hengus
    • #3
    • 4th Oct 17, 2:13 PM
    • #3
    • 4th Oct 17, 2:13 PM
    Wholesale costs are only going one way so variable tariffs make less sense for consumers.

    .
    Originally posted by Bark01
    Wholesale costs only account for about 40p in every £ that we spend on energy. If they doubled overnight, your bill would only increase by 20%. Governments are keen to blame everyone but themselves. The primary reason that electricity has increased over the past year is because of a massive increase in Social and Economic costs which includes smart metering. Will this political initiative work - I have my doubts? That said, it makes for good political headlines.
    • Consumerist
    • By Consumerist 4th Oct 17, 4:28 PM
    • 4,644 Posts
    • 2,309 Thanks
    Consumerist
    • #4
    • 4th Oct 17, 4:28 PM
    • #4
    • 4th Oct 17, 4:28 PM
    . . . I very much doubt the cancellation fees stop the vast majority of people from switching.

    Wholesale costs are only going one way so variable tariffs make less sense for consumers.

    Variable fixed period or traker tariffs can have cancellations fees too.
    Originally posted by Bark01
    Cancellation fees are still a disincentive to switch i.e. anticompetitive, in my view.

    Wholesale costs may be going up at the moment but in the long run that may not always be the case. It could be while, though, before that changes.

    I don't know of any variable-rate tariffs which currently carry an early-termination fee.
    Warning: In the kingdom of the blind, the one-eyed man is king.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,672Posts Today

7,620Users online

Martin's Twitter
  • I was surprised to see the three people in front of me in the newsagents were all shocked their old £1 coins were no longer taken.

  • RT @natdebtline: If you?ve been visited by a bailiff since April 2014 we want to hear your story for our #bailiffreform campaign https://t.?

  • Well so far it seems there's one thing remainers and leavers agree on - the EU is getting the better of the negotia? https://t.co/70z5ffpG8S

  • Follow Martin