Neon Reef - any views?

[Deleted User]

@AbbieCadabra Yes, you can view and download the bill by going into ‘Billing’ in the NR app and ‘View’ ing. 

ivanleo

wittynamegoeshere said:

It's very likely we WILL all end up crowdfunding Neon Reef whether we want to or not, via next April's capped tariff rise.

SOLR payments are funded via the standing charge, nothing to do with the cap.

ivanleo

wittynamegoeshere said:

AFAIK the standing charge isn't ring-fenced in any way, it's just money that you pay to your supplier.

It's all restricted by the cap though.

The standing charge generally covers the costs that suppliers pay to DNOs (though a supplier can adjust this amount up or down by tweaking the unit rate, the DNOs invoice suppliers on a flat-rate basis based on the number of meter points assigned to them). When a SOLR applies to recover some of the costs of the SOLR process and OfGem approves the request, the DNOs add an apportioned amount to the daily standing charge that they levy on suppliers.

Once such example is illustrated here https://www.enwl.co.uk/globalassets/about-us/regulatory-information/documents/current-charging-information/19-20/solr-statement-2019-20-final.pdf

wittynamegoeshere

Presumably if the wholesale standing charge is increased by £x per year then the cap must be increased by £x too though?

The cap is a limit on how much can be charged in total, and that total is made up of daily and per unit charges.

ivanleo

wittynamegoeshere said:

Presumably if the wholesale standing charge is increased by £x per year then the cap must be increased by £x too though?

The cap is a limit on how much can be charged in total, and that total is made up of daily and per unit charges.

I assume the SOLR component of the wholesale standing charge is either factored into the cap, or exempt from it.

wittynamegoeshere

The capped price will be going up in April due to the bankruptcies.

But it will be applied to all customers, not just capped ones, as everyone's supplier pays a standing charge.  If the days of tariffs being below the tariff ever return then I agree that the customers on such tariffs will still be paying more, not just those on the capped tariffs.

But, as a result of the bankruptcies increasing the standard charge, the capped tariff will be higher than it would be if companies had not gone bankrupt.

Are you happy with this definition yet?  I'm now wishing I'd never made a throwaway joke comment about all of us paying for NR's losses.

Ultrasonic

wittynamegoeshere said:

But it will be applied to all customers, not just capped ones, as everyone's supplier pays a standing charge.

That's not true, since most customers not on SVRs will be on fixed deals that define a fixed standing charge.

WillPS

Ultrasonic said:

wittynamegoeshere said:

But it will be applied to all customers, not just capped ones, as everyone's supplier pays a standing charge.

That's not true, since most customers not on SVRs will be on fixed deals that define a fixed standing charge.

Fixed deals which may then force their supplier in to insolvency, at which point they will have to pay more.

The cycle repeats.

wittynamegoeshere

I attempted a throwaway joke comment that we'll all be paying for NR's demise.  This is true.

I'm very apologetic to all if I didn't address all technical aspects of every detail of the inner workings of the energy industry.  For this I humbly apologise, bow my head in shame and will thrash myself repeatedly until I swear never to attempt any form of humour ever again.

Obviously those on fixed tariffs aren't going to get a price rise, at least not until they renew.  Bus fares won't go up either.

Ultrasonic

wittynamegoeshere said:

I attempted a throwaway joke comment that we'll all be paying for NR's demise.  This is true.

I'm very apologetic to all if I didn't address all technical aspects of every detail of the inner workings of the energy industry.  For this I humbly apologise, bow my head in shame and will thrash myself repeatedly until I swear never to attempt any form of humour ever again.

Obviously those on fixed tariffs aren't going to get a price rise, at least not until they renew.  Bus fares won't go up either.

Sorry, the nature of the preceding discussion made me read your post to be more specific than you clearly intended. 

Yes, most will ultimately end up paying more at some point due to the current precession of company failures, presumably including NR at some point.