Energy bills from April ‘22 are gonna be huuuge

daaave

Natural gas up 10% today

https://www.theice.com/products/910/UK-Natural-Gas-Futures/data?marketId=5188705

Currently around ~220p/therm for winter delivery. Compared to 40p/therm this time last year. Up 450%.

 Crucially, prices are looking to stay high throughout ofgems price calculation period that they use to calculate the cap from next April. Ofgem also have to add onto bills, the costs of all these suppliers going bust.

I recon average bills will be pushing £2k.

miserable.

QrizB

Article in The Times this morning suggested the recent supplier failures will add £30 to the average annual bill, from April.

shinytop

We will all have to get used to using less energy and paying more.  The party is over unfortunately and it's time to clear up the mess.

daaave

QrizB said:

Article in The Times this morning suggested the recent supplier failures will add £30 to the average annual bill, from April.

If another 40 go bust, it could add £150-200 to the average bill. Ofgem might choose to reclaim it over a longer period, though.

Thesaltmustflow

My energy costs were already pushing 2K BEFORE everything went t*ts up and I am a careful user. I'm already budgeting for 3K a year in the not too distant future   

niktheguru

Doesn't look good. There'll be more moaning i'm sure.
Surely at some point there will need to be a review in how the whole thing has been handled. No doubt the cost of that review will be passed onto the tax payer too!

Be prepared for higher prices for a while!

johnbhoy70

Unless you've managed to secure a longer term fixed rate with one of the big boys in the last couple of months then you're gonna have to suck it up!! We all are. Even then, i'm sure those people that did that would have taken a certain hit to do that.

We're talking small mortgage payment type figs the way prices are going the now.

Mr_K

On the bright side my Shell shares are doing very nicely. Increased dividends too

Swipe

daaave said:

I recon average bills will be pushing £2k.

Central heating will soon become a luxury for only those that can afford it. Time to start heating only the room you spend most time in.

wakeupalarm

Costs for failures will go up to £90 and who knows maybe more in addition to the rise in energy costs.

"When an energy firm goes under, every other household in Britain is left paying the cost for a new firm to take on its customers.

The company that takes on the failed firms’ clients is allowed to claim transfer costs of between £600 and £700.

They have the right to reclaim this money over 15 to 24 months from every energy customer in the country.

These costs are already significant—around £40 per customer on the basis of the firms that have failed already.

And they are likely to rise to around £90 if the firms that look most precarious cease trading in the coming days.

This £90 would be levied on top of massive rises in October and further increases next April in the energy price cap.

As so often under the regime of “free market” ­capitalism, the profits are ­privatised, the costs are “socialised” among ordinary people.

An energy supplier that collapsed last week leaving 580,000 customers in the lurch paid out £2.25 million to a company run by its two directors in the same year that it made a £28 million loss.

Avro Energy, whose directors are former ­footballer Jake Brown and Philip Brown, is one of six household energy suppliers that collapsed in September.

This meant 1.4 ­million ­customers moved onto another supplier and ­potentially higher tariffs as a result.

Avro Energy’s latest published accounts, for the year ending June 30,

2019, showed a £2.25 ­million payment to Sentido Marketing for “management charges”.

Sentido’s directors are listed as Jake Brown, Philip Brown and a third man, William Brown.

The company is classed as an advertising agency at Companies House."

tghe-retford

The rhetoric from the industry is that this is a correction, not a blip. Therefore, what we are seeing is what we should be paying for energy, particularly if we continue to pursue a zero carbon, nuclear resistant strategy. A lot of things we take for granted now will become a luxury in the future because energy feeds into everything and there are very few, if any short term band-aids we can take.

We need to be pursuing sustainable solutions which also includes consumers in the formula as opposed to just focusing exclusively on an environmental strategy to appease activists who mock you at the UN and defy injunctions to spite you.