Energy price cap to save households £75, Ofgem says

Smodlet

Yet again a measure designed to make the rich (who don't need to watch the pennies/tariffs/switch) richer and the poor, those of us who do all those things, subsidise their overprivileged, rich @sses. What else do you expect from a Tory government? Or any government, these days.

superkoopauk

From my understanding the cap will work like the current PPM cap. So there will be a maximum standing charge and unit rate that can apply to any supplier's default tariff(s). This will be different in each region,fuel type (gas/electricity/Economy 7) and payment type (DD/non DD)

PixelPound

Smodlet wrote: »

Yet again a measure designed to make the rich (who don't need to watch the pennies/tariffs/switch) richer and the poor, those of us who do all those things, subsidise their overprivileged, rich @sses. What else do you expect from a Tory government? Or any government, these days.

Complete fallacy that rich people don't bother changing to cheaper energy and its the poor who have to switch that's affected. Most rich people are rich because they watch where their money goes. People who can employ accountants to ensure they are not paying more tax than they have to are very unlikely to waste money on standard rate energy tariffs.

Financial management is not taught in schools and a lot of people don't get taught how to look after their money or make sure they are getting the best deals. There are a lot of people who use pay day loans, Brighthouse, get a phone that they need and not consider whether its the best tariff, and stay with whatever energy provider served the property where they live.

spenderdave

superkoopauk wrote: »

From my understanding the cap will work like the current PPM cap. So there will be a maximum standing charge and unit rate that can apply to any supplier's default tariff(s). This will be different in each region,fuel type (gas/electricity/Economy 7) and payment type (DD/non DD)

So if a supplier's default tariff is already below the cap there will be no reduction. I wouldn't be surprised if the big suppliers have already tweaked their rates in anticipation of the cap so in effect nobody benefits.

brewerdave

spenderdave wrote: »

So if a supplier's default tariff is already below the cap there will be no reduction. I wouldn't be surprised if the big suppliers have already tweaked their rates in anticipation of the cap so in effect nobody benefits.

I think that you will find that they already have !!

caveman38

I would still appreciate the answer to those of us on default (original) companies and not dual fuel tariffs. How would the cap then be calculated. Could someone at least have a guess - please.

superkoopauk

Caveman38 - I can have a guess at the cap level for you but you will have to tell me your postcode or supply region number first

50Twuncle

Why are there so many tariffs in the first place ?
Surely, electricity is the same electricity whether you are paying by DD in Penzance or prepay meter in Shetland ...
Similarly gas ?
I would be prepared to pay a little more if I knew that everyone was paying the same.

spenderdave

Money Box Live on BBC Radio 4 just had the energy cap (and other aspects of energy suppliers) as their subject. Not too impressed, they failed in my view to explain how the cap will work and it all seemed to be about energy switching websites and their dubious tactics.

Lotak

This is such a stupid rule.
The whole reason why the vast majority of the 11+ million households who are paying through the roof for their energy is due to their own laziness because they haven't switched or fixed their rate. This entire "problem" would go away within 2 months if everyone either fixed or switched.

It is totally unfair that we, the taxpayer and, we the consumer, have to pay the Ministers and Ofgem respectively for this pointless and counter-productive piece of legislation.

All we need is for people to listen to Martin Lewis or watch the countless adverts from switching companies and switch their supply.

It really, really makes me irate when people complain about energy companies raising their tariffs that will affect millions on SVRT. It's your own bloody fault.

Of course, I excuse the elderly and vulnerable in this.