Conservatives promise cap on energy prices

Former_MSE_Faye

The party's general election manifesto is likely to include a pledge to cap prices for households on standard tariffs...

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'Conservatives promise cap on energy prices'

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System

With respect, this is perhaps one for MSE (and Martin Lewis) to take a public view on. In my view, FWiW, this initiative will have a number of unintended consequences:

1. Many fixed tariffs will be withdrawn and will re-appear at increased cost.

2. Many potential switchers will then conclude that the price differential between the SV and fixed tariffs isn't worth the risk of going from a known to an unknown supplier.

3. Some smaller suppliers will drop away, and new suppliers will be put off from taking out a Supply Licence

The suggestion that this is different from the initiative offered by Labour is an insult to the voters. There is little chance of prices falling in the near term. Apart from that, it is great news for the 70% who just can't be bothered to switch. When you are out for short-term votes, best to please the 70% and take the wrath of the other 30%.

Farway

It will all be down to the small print, especailly if the "cap" is a differential between lowest & highest, why not set it at 100%? Keep all the City friends happy at same time fulfills the "price promise"

Politicians promises and pie crusts

phillw

Hengus wrote: »

When you are out for short-term votes, best to please the 70% and take the wrath of the other 30%.

It's a real red bus moment.

Pincher

How can they fix the price of oil and gas?

Is Ofgem going to invade Russia, and take over Siberia?

I would far rather get a two year fix from Scottish Power.
Bound to be cheaper than this cap non-sense.

EachPenny

Unless there is an exemption this could be the end of zero-standing charge tariffs, which would hit some of the lowest energy users (= people potentially on lowest incomes) the hardest.

If this policy ever sees its way into law/regulation then it is vital that 'innovative' tariffs which have a higher unit charge in return for some other benefit (i.e. low standing charge) are protected.

Better still, make it a condition that all major suppliers must offer zero-standing charges as an option.

Andy_WSM

Never trust a Tory!

Refer to Cameron's manifesto and how many (few!) pledges he kept!

It would be better if they capped the energy companies profits (before "exceptional items", wages, bonuses and pensions are paid).

fredandwilma

The Conservatives' general election manifesto hasn't yet been published - and won't be until sometime next month - so we don't yet know much about how the price cap would work, and the policy isn't set in stone.

You can't fool all of the people, all of the time?

EachPenny

Not sure this needs to turn into a 'bash the tories' thread - despite them possibly deserving it.

The problem is governments of all colours have felt the need to meddle in consumer-facing energy supply issues whilst ignoring the elephant in the room which is the (lack of) generation side, other than to promote generation claimed to be environmentally friendly.

None of the recent governments have faced up to the issue that the consumer market doesn't work properly, and the fact the bulk of consumers don't care, and never will, they just want to moan about the high cost of energy and fat cats.

The party that pledges to set up a government-owned energy supply company which competes with the big 6 will be the party that gets my vote this time round. Any nonsense about EU rules prohibiting it from doing so are now (well soon will be) null and void. Gov-Energy Ltd could be the safe haven for people worried about their bills and not wanting to switch on a regular basis, it might not be the cheapest, but people would know they are not being ripped-off (Hmmm... well maybe). Meanwhile the market can devise whatever schemes it wants to compete and try to deliver more attractive deals than Gov-Energy does. Everybody is happy... and not a single use of the 'P' word needed.

phillw

Pincher wrote: »

How can they fix the price of oil and gas?

Is Ofgem going to invade Russia, and take over Siberia?

It's simple, we're taking back control.

EachPenny wrote: »

Gov-Energy Ltd could be the safe haven for people worried about their bills and not wanting to switch on a regular basis, it might not be the cheapest, but people would know they are not being ripped-off (Hmmm... well maybe).

Then brexit would truly be like being sucked back into the 1970's.

System

This is a well-considered piece of journalism about the energy market which does not appear to have any political, energy supplier or PCW links:

https://www.forbes.com/sites/timworstall/2017/04/14/if-cheap-suppliers-are-going-bust-that-means-the-energy-market-is-working/#1eaf70734dee