Households face £21 energy bill rise under new price cap plans - MSE News

Former_MSE_Naomi

Households on standard variable (SVR) tariffs face bills rising by £21 on average next year as the energy regulator has proposed increasing its national price cap to help suppliers cover coronavirus costs - but you're already likely to be overpaying by hundreds on these deals...

Read the full story:

'Households face £21 energy bill rise under new price cap plans - but most will already be overpaying by £100s'

Click reply below to discuss. If you haven’t already, join the forum to reply.

Consumerist

There's not much you can say about this, really. Those who don't switch, for whatever reason, will pay the price.

minislim

i dont get why they are rising the cap? wholesale energy costs are still lower than 12 months ago?
what costs have gone up?

Talldave

Smart meter fiasco?

[Deleted User]

Talldave said:

Smart meter fiasco?

According to the BBC, this increase is to provide support to energy suppliers because some customers are not paying their bills:

Just like every other business, there have been challenges from the pandemic," Emma Pinchbeck, chief executive of trade body Energy UK, said.

"It is the independent regulator's job to hear views, look at the evidence, and weigh up how to support energy retailers through their own commercial difficulties in the pandemic, so that they can continue to supply and support all customers."

Cat Hobbs, the director of We Own It, which campaigns to nationalise energy supply, said: "These proposals from Ofgem are absolutely shocking. The idea that at a time when millions of people are struggling to pay their bills, the solution would be to charge people even more is farcical."

Uxb1

minislim said:

i dont get why they are rising the cap? wholesale energy costs are still lower than 12 months ago?
what costs have gone up?

  to enable the rest of us to pay for all those who will not or cannot pay

bristolleedsfan

minislim said:

i dont get why they are rising the cap? wholesale energy costs are still lower than 12 months ago?
what costs have gone up?

"But it's worth pointing out that even if the £21 increase is approved, the level of the cap itself could still rise or fall further as Ofgem recalculates this every six months based on the situation at the time. So it's not simply a case of the cap rising to £1,063. "

Petriix

I'm happy for ignorant and lazy people to spend more so that they can subsidise the cheap tariffs I switch to every year. The price cap only applies to the maximum cost of a standard variable tariff. I'm not really sure why anyone would actually be on one of those.

badmemory

There are days when I wish they would stop encouraging people to go on fixed tariffs as I know it is going to land up costing me more & then I feel guilty.  Thankfully the guilt doesn't last long.  Although I don't like the thought of people on low incomes being stuck with (very expensive) prepayment meters, it really doesn't seem right.  A bit like taking advantage of someone who has no alternative.