Energy news in general

sienew

gt94sss2 said:

If they do freeze tariffs, it will be recovered via keeping bills higher than they would be for longer.

Its just like the original £200 loan idea just on a much bigger scale

Yes. The BBC are suggesting it'll be repaid with interest over a 10-20 year period.

[Deleted User]

gt94sss2 said:

If they do freeze tariffs, it will be recovered via keeping bills higher than they would be for longer.

Its just like the original £200 loan idea just on a much bigger scale

Looking at the relative numbers - if the cap was fixed at about £2000 or so and wholesale prices dropped back to historic levels, the cap would have to stay that high until the mid-2030s to recover the right amount.

charliesf

Good on Liz. Something has to be done. Lot's of people are in fuel poverty and lots businesses will also go to the wall if nothing happens.

jak22

The cap doesnt sound like its being frozen or changed - its more like a subsidy to either reduce the unit rate - possibly all the way down to April rates which does work out like a cap freeze - or a cash amount like a very expanded loan scheme. The only glitch in replacing the promised £400 for all is for anyone who took a fix paying over April rates on the assumption they'd be better off after October as its seems unlikely the subsidy would be applied to a fixed contract.

[Deleted User]

jak22 said:

The cap doesnt sound like its being frozen or changed - its more like a subsidy to either reduce the unit rate - possibly all the way down to April rates which does work out like a cap freeze - or a cash amount like a very expanded loan scheme. The only glitch in replacing the promised £400 for all is for anyone who took a fix paying over April rates on the assumption they'd be better off after October as its seems unlikely the subsidy would be applied to a fixed contract.

That's kind of what a fixed contract is all about though.  Look at it as insurance (paying more than the April rates) against potential big price rises in future.  You wouldn't expect a refund of your car insurance premium if you didn't have an accident that year.

MattMattMattUK

charliesf said:

Good on Liz. Something has to be done. 

Yep, make a bad situation worse, just what we need.

charliesf said:

Lot's of people are in fuel poverty and lots businesses will also go to the wall if nothing happens.

She is not proposing any help for businesses, only intervention for domestic tariffs. The proposal to freeze the price cap is short term gain for long term pain, better to have a winter or two or cutbacks than a decade, possibly two of cutbacks which is what this will lead to.

jak22

News items now no longer talk about the cap being frozen - instead a loan scheme to subsidise bills both domestic and business - so only those on fixed deals above the April cap will miss out.

sienew

MattMattMattUK said:

charliesf said:

Lot's of people are in fuel poverty and lots businesses will also go to the wall if nothing happens.

She is not proposing any help for businesses, only intervention for domestic tariffs. The proposal to freeze the price cap is short term gain for long term pain, better to have a winter or two or cutbacks than a decade, possibly two of cutbacks which is what this will lead to.

The BBC are reporting she will have a similar package for businesses, especially SME's.

MattMattMattUK

sienew said:

MattMattMattUK said:

charliesf said:

Lot's of people are in fuel poverty and lots businesses will also go to the wall if nothing happens.

She is not proposing any help for businesses, only intervention for domestic tariffs. The proposal to freeze the price cap is short term gain for long term pain, better to have a winter or two or cutbacks than a decade, possibly two of cutbacks which is what this will lead to.

The BBC are reporting she will have a similar package for businesses, especially SME's.

If that is the case we are going to tanm our nation's credit rating and interest payments on government debt are going to rise, probably substantially. Throw in the tax cuts she has promised and she will manage to make Corbyn look financially literate by comparison.  

tghe-retford

[Deleted User] said:

gt94sss2 said:

If they do freeze tariffs, it will be recovered via keeping bills higher than they would be for longer.

Its just like the original £200 loan idea just on a much bigger scale

Looking at the relative numbers - if the cap was fixed at about £2000 or so and wholesale prices dropped back to historic levels, the cap would have to stay that high until the mid-2030s to recover the right amount.

What happens if wholesales prices don't drop because Putin keeps the war going for years, this becomes a correction rather than a blip and we don't invest in short and long term energy independence? Now we have crippling bills and huge debt. And if running until 2024, there will be a General Election.