Energy news in general

brewerdave

pochase said:

brewerdave said:

Mstty said:

peterf83 said:

There must come a point where the government will have to intervene further. It’s all fine and well saying this is what the cost of energy is, but millions, even middle income earners, are not going to be able to pay their bills. 

It seems to me that the April increase hasn’t really been felt due to summer months and reduced energy usage, when this increase comes in October, as heating is starting to be needed, there is going to be an almighty reckoning. 

For those that have closed their eyes and ignored it all well they are in for quite the shock.

However if the rises continue into next year in the summer and autumn then yes more help will be needed for "all"

If the cap rises as far as £4k this October ,the Government are going to have to dig very deep - otherwise 100,000s of households will default on their bills and cancel DDs - no way are the companies going to be able to put all on to PAYG.

Why not? 

Yes it will be a problem for people on non smart meters, but my understanding for smart meters is that they are the same for prepaid and credit, so it would just be a software change and sending the information how to load the meter.

I hope we won't get to cap higher than the currently predicted one of £2800 to £3150 (three different sources), but where can should the money come from for further help, and even more important for me, if the prices stay high what is going to happen next year?

Even with a "smart" meter, my understanding is that the Company has to take legal action to switch someone to PAYG if they don't want it.? How long would that take with the backlogs in the Courts.
 Where should the money come from ? God only knows - but no Government could survive whilst ignoring huge numbers of people with no heating in a bad Winter.

pochase

brewerdave said:

pochase said:

brewerdave said:

Mstty said:

peterf83 said:

There must come a point where the government will have to intervene further. It’s all fine and well saying this is what the cost of energy is, but millions, even middle income earners, are not going to be able to pay their bills. 

It seems to me that the April increase hasn’t really been felt due to summer months and reduced energy usage, when this increase comes in October, as heating is starting to be needed, there is going to be an almighty reckoning. 

For those that have closed their eyes and ignored it all well they are in for quite the shock.

However if the rises continue into next year in the summer and autumn then yes more help will be needed for "all"

If the cap rises as far as £4k this October ,the Government are going to have to dig very deep - otherwise 100,000s of households will default on their bills and cancel DDs - no way are the companies going to be able to put all on to PAYG.

Why not? 

Yes it will be a problem for people on non smart meters, but my understanding for smart meters is that they are the same for prepaid and credit, so it would just be a software change and sending the information how to load the meter.

I hope we won't get to cap higher than the currently predicted one of £2800 to £3150 (three different sources), but where can should the money come from for further help, and even more important for me, if the prices stay high what is going to happen next year?

Even with a "smart" meter, my understanding is that the Company has to take legal action to switch someone to PAYG if they don't want it.? How long would that take with the backlogs in the Courts.
 Where should the money come from ? God only knows - but no Government could survive whilst ignoring huge numbers of people with no heating in a bad Winter.

My understanding is that they need to get a warrant to enter your house to install a prepaid meter, not to switch you to prepaid.

Even citizen advice says the supplier is allowed to put you onto prepaid if there are not reasons why it cannot be done (heath etc). So I would say if they can put you onto prepaid without entering your home they are allowed to do so.

You could pay more if you refuse without a reason

If none of the reasons on this page apply to you, your supplier is allowed to make you move to prepayment. If you don't agree to this, they can get a warrant to enter your home and install an old-style prepayment meter or change your smart meter to the prepayment setting - this could cost up to £150. They’ll add the cost of the warrant to the money you owe them.   

Somehow the information seems to be old and does not even mention the possibility of smart meters.

MattMattMattUK

peterf83 said:

There must come a point where the government will have to intervene further. It’s all fine and well saying this is what the cost of energy is, but millions, even middle income earners, are not going to be able to pay their bills. 

There might, but the reality is that middle earners are still going to be able to pay their bills, they will just need to cut back on other things, one less takeaway or meal out per week would probably cover it. That has knock on implications for the wider economy, but so does every form of intervention open to the government. The large amounts of "free" money being handed out are going to have inflationary implications and should soften or remove the blow for many, especially lower earners who can potentially get £1,350, although they will also have to contend with wider inflation as well.

peterf83 said:

It seems to me that the April increase hasn’t really been felt due to summer months and reduced energy usage, when this increase comes in October, as heating is starting to be needed, there is going to be an almighty reckoning. 

It probably has not. One of the indicators of people's lack of understanding is the volume of people coming on here to complain that their energy provider has/is trying to raise their Direct Debit, with them complaining "I always pay £100 and I am not using any more", with a complete lack of awareness that energy prices have doubled since last year. 

The problem is that the government's options are limited. Handouts or subsidy are inflationary and also cost a lot of money which needs to be covered from tax rises or borrowing, neither of which are a particularly good idea at the moment. 

StartledJesus

Is this our old 'friend' with the penchant for American state Company names?

https://www.ofgem.gov.uk/publications/refusal-supplier-licence-applications?utm_medium=email&utm_source=dotMailer&utm_campaign=Daily-Alert_05-07-2022&utm_content=Refusal+of+supplier+licence+applications&dm_i=1QCB,7XIM1,7DAEHV,WENS5,1

Nice try, but a bit of a giveaway.

markin

StartledJesus said:

Is this our old 'friend' with the penchant for American state Company names?

https://www.ofgem.gov.uk/publications/refusal-supplier-licence-applications?utm_medium=email&utm_source=dotMailer&utm_campaign=Daily-Alert_05-07-2022&utm_content=Refusal+of+supplier+licence+applications&dm_i=1QCB,7XIM1,7DAEHV,WENS5,1

Nice try, but a bit of a giveaway.

https://www.dailymail.co.uk/news/article-10028689/The-man-whos-fortune-helping-set-SEVEN-collapsed-energy-suppliers.html

wakeupalarm

Thanks Norway.
https://www.bbc.co.uk/news/business-62058512

savers_united

As much as high energy prices for households is worrying and is going to take money away from other parts of the economy for those who can afford to pay. The bigger implications are on businesses, many SME are just not going to survive these prices as they will be limited in how much of the cost they can pass on to consumers with them also facing higher costs be it at home, on the road or when out and about. 

brewerdave

One thing I hadn't thought about until this morning, is that £3000pa energy cap is £250pm - the ceiling ( 2%=£5)  for monthly cashback on Santander current accounts            Don't know if other bank accounts have a higher ceiling ?

Sea_Shell

ML posted on FB that Outfox the Market could be in trouble..

(No time to find/post link... sorry.)

pochase

Ofgem seems to think they are

https://www.ofgem.gov.uk/publications/foxglove-energy-supply-ltd-provisional-order-july-2022?utm_source=twitter&utm_medium=ofgem&utm_term&utm_content&utm_campaign&fbclid=IwAR12Ej1PX6SjjpDMrxNRqLBNMomPdFmfEuvxVp2qxpZzVo1904LdyRmhtBs

The Authority, pursuant to section 25(2) of the Electricity Act and section 28(2) of the Gas Act, and for the purpose of securing compliance with SLC 4B, makes a Provisional Order requiring Foxglove:

 1. Not to act in contravention of SLC 4B; 

2. By 2 August 2022 improve its financial position such that it can demonstrate that it can operate effectively under all financial stress test scenarios provided by the Authority2 to Foxglove alongside this Order, and in so doing ensure it will be able to meet its Renewables Obligation liability when this falls due3 ;

 3. By no later than 5pm on 5 August 2022 provide the Authority with a report confirming Foxglove’s compliance with paragraphs 1 and 2 above;

4. Until the provision of the report referred to in paragraph 3 above:
a. Refrain from all sales, marketing and customer acquisition activity, including the acquisition of any new domestic customers or upgrading of all existing domestic customer to dual fuel;
b. Refrain from making any payment, providing any loan or transferring any asset to any third party unless that payment, loan or transfer is essential to Foxglove’s operation as a supplier of gas and electricity to consumers.