What should the unit prices be to cover wholesale prices?

Sea_Shell

I wonder if the cap that will be announced tomorrow (apparently), will be with or without the (possible) £200 discount applied?

RegForme

Sea_Shell said:

I wonder if the cap that will be announced tomorrow (apparently), will be with or without the (possible) £200 discount applied?

This is the first I'd seen mention of this scheme. More details for anyone reading: https://www.bbc.co.uk/news/business-60228235

If discount is applied to the cap only, then those of us who took a recent fix to avoid going onto the April cap will be in effect chastised for planning ahead. Only a minor issue compared to the overall negative impact on the poorest members of society tbf. At the same time, I can't imagine the government want to be funding a £200 discount for households still on pre-market-meltdown fixes. 

meinnit

Sea_Shell said:

I wonder if the cap that will be announced tomorrow (apparently), will be with or without the (possible) £200 discount applied?

I wondered the same. I don't think the finer detail has been released yet so my guess is either the cap will include the discount OR it will be adjusted before April

wakeupalarm

It's a £200 loan which customers will be forced to pay back over 3-5 years.
It's not free money like the £8.7Billion written off to PPE suppliers or £4.3Billion written off to Covid loan fraudsters by  the Government.

RegForme

wakeupalarm said:

It's a £200 loan which customers will be forced to pay back over 3-5 years.
It's not free money like the £8.7Billion written off to PPE suppliers or £4.3Billion written off to Covid loan fraudsters by  the Government.

From the way I read it, the loan would be to the supply companies, on the understanding (or obligation) that they would use it to lower the price end users are paying. Customers will end up paying it back, but only indirectly through higher prices over the next few years. So the fact that it is a loan shouldn't be obvious from the customer side.

Sea_Shell

If it is going to be reflected in the price cap rates, rather than an actual credit, then it could end up benefiting "high users" more than "low earners".

Discount for your Hot Tub? 😉

MattMattMattUK

RegForme said:

wakeupalarm said:

It's a £200 loan which customers will be forced to pay back over 3-5 years.
It's not free money like the £8.7Billion written off to PPE suppliers or £4.3Billion written off to Covid loan fraudsters by  the Government.

From the way I read it, the loan would be to the supply companies, on the understanding (or obligation) that they would use it to lower the price end users are paying. Customers will end up paying it back, but only indirectly through higher prices over the next few years. So the fact that it is a loan shouldn't be obvious from the customer side.

It will end up costing us more in the long run. The government need to stop messing around with the markets and start worrying about overall supply and energy security. 

ManMadeWays

Network costs. In Oct 21 these were £268. This is where SoLR costs usually show up so I'm increasing this to £320 (+£52).

I think you'll find these going up by 40-50% not 20%

But we'll find out 11am tommorrow

savers_united

Sea_Shell said:

If it is going to be reflected in the price cap rates, rather than an actual credit, then it could end up benefiting "high users" more than "low earners".

Discount for your Hot Tub? 😉

Not always the case, low earners are often the ones in poor housing or rentals with high energy costs. Many better off have highly efficient modern homes. 
I am one though who believes the standing charge should be alot higher and unit rate lowered, currently the standing charge on the capped tariff is not covering the £400+ non energy cost of a typical average users bill, so it's the high users who are footing the bill for maintaining the network and other obligations. 

wakeupalarm

from The Times

Every home would get £200 energy bill rebates under new plans being debated by government - but only temporarily.

However, the cash would be a sort of loan, not a grant. The money would help with the immediate problem of high energy bills, but the government wants homes to repay it over time.

The scheme would see £6billion of taxpayer cash handed to energy firms, which would be used to lower energy bills for each household.

However, this cash would be paid back by consumers over the following years in the form of slightly higher bills.