Energy price cap passed by MPs - MSE News

edited 30 November -1 at 1:00AM in Energy
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Former_MSE_Megan_FFormer_MSE_Megan_F Former MSE
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edited 30 November -1 at 1:00AM in Energy
An energy price cap will be in place this winter after legislation passed through Parliament but don't wait - you can switch and save today...
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'Energy price cap passed by MPs'
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  • Does this mean that 'deal' prices will now go up to pay for those who are too lazy to switch? Awesome.
  • wiggerswiggers Forumite
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    Welcome to Venezuela! Governments should never cap anything.
    If your outgoings exceed your income, your upkeep will be your downfall.
    -- Moe Howard of The Three Stooges explaining economics to brother Curley
  • ConsumeristConsumerist Forumite
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    jimbo747 wrote: »
    Does this mean that 'deal' prices will now go up to pay for those who are too lazy to switch? Awesome.
    Yes, of course. But the government will claim that the new "efficiencies" it is demanding will pay for it.


    We were pretty sure this was coming, folks. So we'll just have to suck it up. :)
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • A_Nice_EnglishmanA_Nice_Englishman Forumite
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    A cap will soon turn into a standard price for all.

    Us savvy consumers who do our sums, switch regularly and pocket the cashback will end up paying the same as those who still buy from their 'regional gas and electricity boards'.
  • gadgetmindgadgetmind Forumite
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    A cap will soon turn into a standard price for all.

    This is exactly what happened when pre-pay caps were introduced; those charging more lowered their prices, but those charging less (mainly smaller suppliers) increased theirs as they knew they wouldn't lose customers.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • JoyfulJoyful Forumite
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    I thought the Safeguard tariff was brought in for vulnerable customers. This means they claim the Warm Home discount. I dont think a cap is fair unless all the smaller companies have to pay towards all the social concerns the larger one have to do. We need a level playing field.
    ****Released the reins and am now Self employed runnung two business's****
  • AJS321AJS321 Forumite
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    This is just bad idea in so many ways.

    It!!!8217;s alright for people who!!!8217;ve never switched before, but what about those of us who keep our eye on the market and switch to the best deal every year or so? It just proves that the government doesn!!!8217;t have the interests of the responsible consumer at heart.

    With an absolute cap rather than a relative one it looks like suppliers will have to start moving towards standardised tariffs with few incentives to switch. So what on earth is the point of having a competitive market when the government start doing things like this?

    And it also looks like the cap will apply to both smart and traditional meter customers, so suppliers won!!!8217;t be able to introduce differential pricing. This might not mean much now, but once the initial smart rollout has been completed, it means everyone will have to pay for the increased overhead costs which cone with having to run two different operating systems, one for smart meters and one for traditional meters for people who fir whatever reason don!!!8217;t want a smart meter. It was my understanding that once the rollout is complete in about 2022, the costs of running the traditional system would be met entirely by traditional meter customers. This will of course result in the loss of the main incentive for people to get smart meters and the ordinary consumer having to foot the bill for people who don!!!8217;t want smart meters because they read something in the Daily Mail about them being part of a government spying programme or then causing cancer.

    The current government really is turning into an absolute joke.
  • AJS321AJS321 Forumite
    63 Posts
    Joyful wrote: »
    I thought the Safeguard tariff was brought in for vulnerable customers. This means they claim the Warm Home discount. I dont think a cap is fair unless all the smaller companies have to pay towards all the social concerns the larger one have to do. We need a level playing field.

    I think that’s because many of the small suppliers are upstart companies with very tight profit margins. Two of them have already gone bust in the last two years and at least one more which I know of sold up when it was about to go bust. I doubt the government wants this to keep on happening because the general public could get the impression a competitive energy market doesn’t work.
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