Energy news in general

pochase

Most likely due to the Ukraine closing one of the pipelines and countries buying from Norway and Netherlands to make up for the shortfall,

Ultrasonic

StartledJesus said:

Ofgem criticised again. Also, some forecasts from Cornwall Insights.

https://www.cityam.com/ofgem-failed-to-understand-and-tackle-risks-in-the-market-argues-citizens-advice/

With regard to the suggestion by Scottish Power (but Spanish owned), those folk who objected to a £200 loan over four periods will certainly not be happy with a £1000 loan over 10 years! How many of us will still be alive in 10 years? 

Well, those who don't think they'll live 10 years have far less to worry about regarding such a loan than those that do!

rjmachin

I saw this from Ofgem a few days ago:
https://www.nationalgrid.com/ofgem-enables-national-grid-make-early-payment-interconnector-revenues-helping-reduce-household

Does anyone know what this may mean for us normal folk?  Will it mean we get cash (like the council tax rebate), credit on bills, or perhaps will be used to reduce the standing charge?

gefnew

This from Ofgem on the Beeb.
Energy bills shake-up plans to smooth price rises - BBC News

bristolleedsfan

https://twitter.com/MartinSLewis/status/1526132236399017985

davidgmmafan

I have to agree with what I saw Martin Lewis say on LBC - that we have the worst of a competitive and nationalised energy industry with none of the advantages...

Xbigman

Martin Lewis is a consumer champion and what he's saying is spot on from the consumer perspective.

From the energy companies perspective, if you take out an expensive fix they will pre-buy gas and electric at expensive rates for that fix. If you then switch away they are stuck with expensive gas and electric they can't sell except at a loss. Why should they take that loss when the consumer is in breach of contract. The possible solutions include having a fixed contract that really was fixed and you can't get out (IE try cancelling a Virgin Media contract, you have to pay the full cost of the contract to get out) or having switching fee's of hundreds or conceivably thousands of pounds. 
OFGEM's solution will stop cheaper tariff's coming through quickly but will protect the energy companies from going bust. That is part of OFGEM's remit too.

Having said that, I agree the energy market is a mess. I'd favour the nationalization of the generating side and scrap the cap because it won't be needed once the government controls wholesale electricity prices. We should increase gas storage and let gas prices simply float with the market

Darren

pochase

While what you are saying is correct, the supplier has the possibility to put exit fees on the fixed tariff to protect themselves. So the old supplier will get the exit fee plus the compensation.

The way Martin was describing it the market stabilisation it would also kick in for customers changing from the SVT. 

spot1034

Perhaps exit fees could be set so the charge is greater if a customer leaves early in the contract but then reduces when there is less time remaining. Would there be anything to stop companies doing this now? 

bristolleedsfan

spot1034 said:

Perhaps exit fees could be set so the charge is greater if a customer leaves early in the contract but then reduces when there is less time remaining. Would there be anything to stop companies doing this now? 

Suppliers can set exit fees as they like, I think the primary concern is about consumers switching from SVR which has no exit fees with energy purchased in advance to cheaper fixed rates when wholesale prices fall, (measures will reduce chances of cheaper fixed rates being offered even more than no apparent competition is already doing so currently)