David Cameron writes for MSE on his plans to help on energy bills

JohnR

magyar wrote: »

Where do you get those figures from? The value of a ROC is about £42/MWh or 4.2p per kWh, and it's for 20 years not 25.

You do get double ROCs for some forms of renewable generation.

bioboybill

This coalition has lied to us from the minute they took over and this is just more of the same. They care so much about people being able to pay their bills that they cut the Winter Fuel Allowance for pensioners. This is just more !!!!!!!!!

wozearly

jamesd wrote: »

The main cause of price increases is government policy to subsidise certain forms of power generation. The Prime Minister surely knows that so I have great difficulty in seeing that claim as anything other than an outright lie.

Wholesale energy costs make up about 50% of energy bills, a further 40% is fairly equally divided between distribution costs and operating costs, 5% is VAT.

Which leaves about 5% for costs related to power subsidy and other associated bits (ie, not much). The main reason for the rise is that wholesale prices have risen substantially, as they are likely to continue to do. The government subsidy for alternative power generation isn't particularly cost-efficient to say the least, but in the grand scheme of things I don't believe its a big driver of cost in bills.

rickbonar wrote: »

I've got a suggestion for them...

re nationalise and cap chief executive pay to a maximum of £500,000 per annum and bonuses limited to what their company saves the customer.

And whilst they're at it do the same with Phones, Water, Railways and bus companies..... and a few others that I've not mentioned.

Nearly forgot,,, car insurance too be taken into government control too.

The problem with renationalising is that you need to pay for it now, which means the money has to be brought in via additional taxation (or added further to the debt burden).

Products that rise rapidly in price (e.g. energy, railways, car insurance) usually do so because the underlying cost of delivering the service is rising rapidly - it doesn't automatically mean that there's mass profiteering going on (although sometimes there almost certainly is), or that its possible to return to the price levels of previous years.

Nationalisation wouldn't necessarily fix the problems - for example, car insurance is getting hideously expensive due to the rise in personal injury claims. The government owning car insurers wouldn't do anything to affect that.

magyar

JohnR wrote: »

You do get double ROCs for some forms of renewable generation.

Nothing has yet qualified for two ROCs though. For example, offshore wind farms accredited before April 2014 will get 2 ROCs/MWh but none has been accredited yet.

(Actually Greater Gabbard and Thanet might have been - will check).

*edit* have checked on the ROC register and I can't see anything for either.

willow_loulou

magyar wrote: »

Then you'll pay more. It's entirely fair that companies charge less for direct debits (and utilities are not alone in this). Statistically those customers are far lower credit risks plus they have the money in their account, not yours.

So why are they cheaper than a pre payment meter? They get my money before I turn a thing on

magyar

willow_loulou wrote: »

So why are they cheaper than a pre payment meter? They get my money before I turn a thing on

I'm guessing it's because PPMs are more expensive to maintain.

garymoran

Particularly climate change levy and ROC's

willow_loulou

magyar wrote: »

I'm guessing it's because PPMs are more expensive to maintain.

They dont maintain them anymore than anyone else though, I get a supposed visit once every 2 years (its been 3 since the last one) Im not sure its viable to say the paypoint scheme is expensive as so many use it to pay loads of bills - I used to think it was because of that, I have my doubts now

Totality

garymoran wrote: »

Particularly climate change levy and ROC's

Does that help though?

For the majority, I think the only thing that matters here is the amount being paid out each month.

Anything other than a price reduction (unlikely as it is) would be a failure, imo.

Totality

Also, Chris Huhne on Sky News earlier today was advising people to switch and make sure they are on the cheapest tariff. That to me pretty much means the Government won't try and get bills reduced.