Conservatives promise cap on energy prices

EachPenny

phillw wrote: »

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

Except in the 70's for gas and electric there was no choice but Gov-Energy. That isn't what I'm suggesting.

There's no need to limit ourselves to just private companies or just a state run monopoly - real competition can exist with a mix of both, and government sometimes can do it better than the private sector. The example of government owned East Coast Trains perhaps?

Anyway, I though Brexit was meant to be taking us back to the 1950's?

EachPenny

Hengus wrote: »

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

Interesting article, but maybe doesn't consider the issue of economies of scale? Small energy companies can only offer lowest prices by having a skeleton staff that leads to customer service issues which some customers find unacceptable (like call centres not being open in the evening or on Saturdays).

Larger companies have the economy of scale, but don't seem to be able to convert that into lower prices, even where their customer mix has a high percentage on SVR where the prices are less competitive.

sheff6107

If the spread of annual prices is £1000 - £1700 for example, and most suppliers are in the £1100 - £1300 range, how would a price cap of say £1600 help many people?

EachPenny

sheff6107 wrote: »

If the spread of annual prices is £1000 - £1700 for example, and most suppliers are in the £1100 - £1300 range, how would a price cap of say £1600 help many people?

More likely that they will set a cap-price on each unit, probably just below the highest prices currently charged.

All that will happen is companies will then set their price at (or just below) the cap and that will result in price increases for many customers, possibly more than the number who will see reductions.

The major difference will be future price rises will be triggered by Ofgem raising the cap with all the companies rushing to follow the lead. Rather than as it is claimed they currently to do which is apparently to arrange the next round of increases amongst themselves [/cynical]

A bit like the BoE cutting the base rate and all the banks and BS rushing to follow suit.

Cardew

EachPenny wrote: »

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.

Whilst the above is true, it is pertinent to point out that many of the zero DSC(Ebico etc) customers are well off who have Ebico for their holiday homes etc.

EachPenny

Cardew wrote: »

Whilst the above is true, it is pertinent to point out that many of the zero DSC(Ebico etc) customers are well off who have Ebico for their holiday homes etc.

Indeed, what I was trying to say was the lowest energy users who are also on low incomes will be hardest hit, relatively speaking.

The low energy users who are filthy rich and own holiday homes should of course be fleeced for every penny possible, perhaps having a 200% surcharge on their energy use, maybe more. Anyone willing to support that policy?

davidgmmafan

Firstly Ofgem are involved and I have been of the opinion that they are part of the probelm rather than the solution for some time.

Secondly as others have already alluded to companies will manipulate this in whatever way they can to their advantage. Similar to Cameron's idea to force suppliers to put everyone on their cheapest tariff (they would just raise ALL their prices and hey presto everyone is on the cheapest tariff) this sort of ill thought out tinkering is doomed to failure.

JohnRo

Just blame it all on Corbyn, that seems to work well for most folks. Failing that blame Ed, he started it after all.. the nasties are simply doing the decent thing. Oh it's praise they want, scratch that then, go! TM.

At least the economy is in safe hands.

EachPenny

JohnRo wrote: »

Just blame it all on Corbyn, that seems to work well for most folks. Failing that blame Ed, he started it after all.

Maybe it would be better to just blame it all on Attlee, wasn't it him that actually started it all?

spiro

The problem is a lot of people don't come off SVT because they refuse to pay by DD for whatever reason to get the beter deals.

As an example looking on the BG website comapring pay on bill v DD unit rates:

Gas 4.06p v 3.83p
Elec 13.14p v 12.21p

If you then apply this to the OFGEM medium user figues of gas 12,500 and elec 3,100 the difference between the 2 payments methods for the SVT is a saving of £57.58 for doing nothing but changing how you pay.