Energy news in general

[Deleted User]

Copied over from Pure Planet thread. Martin Lewis on GMB this morning

https://forums.moneysavingexpert.com/discussion/comment/78874496#Comment_78874496

**Should just be the last comment, not the whole thread. 

tghe-retford

Deleted_User said:

It appears that Boris has pooh-poohed both the VAT and green levy reduction options, for any abatement of the imminent cost of energy crisis. 

LONDON (Reuters) - Britain’s government will listen to businesses and consumers on measures to abate rising energy bills, but a cut in sales tax on gas and electricity was a “blunt instrument”, Prime Minister Boris Johnson said on Tuesday.

“We will continue to listen to businesses and consumers about how to abate the costs of energy,” he told a news conference. “I’m not ruling out further measures.”

“The argument is ... that (value added tax) is a bit of a blunt instrument, and the difficulty is that you end up also cutting fuel bills for a lot of people who perhaps don’t need the support in quite the direct way that we need to give it.”

Because one of the biggest benefactor of rising energy prices will be the Government who will need all the tax windfall they will receive to pay off the massive debt accumulated from lockdown. Raising VAT to 20% on energy bills would be explosive to his approval rating so it remains as is.

brewerdave

tghe-retford said:

Deleted_User said:

It appears that Boris has pooh-poohed both the VAT and green levy reduction options, for any abatement of the imminent cost of energy crisis. 

LONDON (Reuters) - Britain’s government will listen to businesses and consumers on measures to abate rising energy bills, but a cut in sales tax on gas and electricity was a “blunt instrument”, Prime Minister Boris Johnson said on Tuesday.

“We will continue to listen to businesses and consumers about how to abate the costs of energy,” he told a news conference. “I’m not ruling out further measures.”

“The argument is ... that (value added tax) is a bit of a blunt instrument, and the difficulty is that you end up also cutting fuel bills for a lot of people who perhaps don’t need the support in quite the direct way that we need to give it.”

Because one of the biggest benefactor of rising energy prices will be the Government who will need all the tax windfall they will receive to pay off the massive debt accumulated from lockdown. Raising VAT to 20% on energy bills would be explosive to his approval rating so it remains as is.

It is a fair argument tho' ,that removal of VAT and/or green levies from utility bills, would be more advantageous for the better off, rather than those who will find themselves in genuine fuel poverty..

Sea_Shell

That's as may be regarding VAT (I know I can afford it - and any cut would be a bonus), but they need to do something else to help, and fast!!    There's going to be a lot of people, especially those that for whom their gas and electricity bills may as well be written in Swahili, that are going to get some really nasty surprises when their winter bills hit the mat.

You only need to read the comments on ML's FB page whenever he posts about this.   People are worried and scared.

No doubt not all of them are on any sort of benefits or are elderly.   Just ordinary working people trying to pay their bills.

Means testing any assistance is all very well, but it takes time to do properly, and they just don't have time on their side.   Yes, they could apply credits to bills retrospectively, but that won't stop DD's being increased in the meantime to unaffordable levels.

[Deleted User]

This article argues that Government loans to the suppliers are not the answer either.

https://www.cityam.com/government-loans-energy-firms-cant-be-final-answer/

wakeupalarm

They can't cut VAT on Energy bills as it is needed to pay for Government ministers expensive tastes and to look after their donors.

They can't loan money to Energy companies as they have repeatedly stated they won't bail out the energy companies and there is no guarantee they will get our money back.

This is the do nothing government so they will probably follow Martin's advice and do nothing.

Sea_Shell

I'm still surprised that Santander (123) haven't pulled their 2% cashback on energy bills yet.

I can't see this this continuing past April 22!  It'll cost them a fortune!

[Deleted User]

I note that Ofgem is keeping a very low profile. Its Daily Bulletin has not imparted anything of interest for some time...

DiseasedBunny

No companies have gone pop for nearly a month either…

[Deleted User]

Peston reminds us of the danger of inflation, both for the consumer and the Government. 

https://www.itv.com/news/2022-01-05/why-pm-and-labours-conventional-solutions-to-the-energy-crisis-wont-work