News: Energy bills to rise by £700/yr for many | Chancellor unveils up to £350 households support

Petriix

MattMattMattUK said:

cooners said:

What I don't get is why Ofgem allowed it to rise so much in the first place. 
The whole point is to protect us from this sort of thing but once again Tory greed wins out over the cost of living.

Energy is already being sold at below cost, it is nothing to do with a Tory government but caused by global supply factors. The Ofgen price cap was not designed to give us cheap energy, it was designed to stop energy providers charging high margins, the current cap forces them to sell at a loss, which is why it needs to rise. Greed has nothing to do with it, although Putin's weaponization of energy is at least part to blame. 

It's everything to do with the tory ideological assault on government ownership. They gave away the energy infrastructure for peanuts and now billions are extracted in dividends, mostly from the wholesale side of the industry. 

MattMattMattUK

Petriix said:

MattMattMattUK said:

cooners said:

What I don't get is why Ofgem allowed it to rise so much in the first place. 
The whole point is to protect us from this sort of thing but once again Tory greed wins out over the cost of living.

Energy is already being sold at below cost, it is nothing to do with a Tory government but caused by global supply factors. The Ofgen price cap was not designed to give us cheap energy, it was designed to stop energy providers charging high margins, the current cap forces them to sell at a loss, which is why it needs to rise. Greed has nothing to do with it, although Putin's weaponization of energy is at least part to blame. 

It's everything to do with the tory ideological assault on government ownership. They gave away the energy infrastructure for peanuts and now billions are extracted in dividends, mostly from the wholesale side of the industry. 

The average margin on electricity supplies has been around 2.5% over the last decade. That means if no profits were made your bill would have only been at most 2.5% cheaper. 

Most of the money is made by the companies that prospect for and extract the energy, the dirty end. Most of that has been private for decades, much of it was always private, the government has made a lot of money from them in taxes, a large chunk of the shares are owned by pension funds which pay back as pensions. Yes I would have done things differently, but it is not the disaster that you and your ilk like to try and make out.

DebbyInDebt

What happens if you are in a joint household with a partner when you get the £200 loan, if you were to seperate and live in two separate households they would both get this loan repayment added to their bill and end up paying double the amount back than they collectively borrowed?

MattMattMattUK

DebbyInDebt said:

What happens if you are in a joint household with a partner when you get the £200 loan, if you were to seperate and live in two separate households they would both get this loan repayment added to their bill and end up paying double the amount back than they collectively borrowed?

It is not a loan in the normal sense. However, every residence account open in October will receive it and every residential account open at the relevant point in the next five years will pay the surcharge.

Overall almost everyone will lose out because of this, some of us will however lose out more than others.

Aauk25

I wanted some advice, my current fixed rate ends this month (Feb). I currently pay £1350 a year, the tariffs available currently are around £3000 pa. However I have been sent a exclusive deal which is £2200 till June 2023. As the standard rate will be around £2000 from April. Should I do nothing and move to standard or fix till June 2023? I’m very tempted.

 Any advice would be appreciated 

Thanks in advance 

wrf12345

It is now 2.5 percent on a much higher income, BTW.

Seems they are petrified that people will cap the gas supply, only a small increase in s/c compared to electricity which has basically doubled.

Ofgem need to be investigated for corruption, only explanation I can think of that they are deliberately upping the s/c's like this.

QrizB

Here's my take on the new rates. E&OE.

Sterlingtimes

MattMattMattUK said:

It is not a loan in the normal sense. However, every residence account open in October will receive it and every residential account open at the relevant point in the next five years will pay the surcharge.

Overall almost everyone will lose out because of this, some of us will however lose out more than others.

Every account receives £200. But does every resident repay £200 literally or will the unit rate be increased to recover the amount of the whole Government loan, i.e. will the burden of the repayment be shared unequally?  

MaggieGroundhog

wittynamegoeshere said:

Andy1T said:

All this talk and hype about those fortunate to live in a home with mains gas and/or electricity.  What about a price cap for the significant numbers of people living in rural homes who MUST  use oil or natural gas?

Nobody MUST use any fossil fuel.  We're 100% electric.  Have you looked at heat pumps?

I just heard the Chancellor say we couldn't have a windfall tax on energy company profits because they needed to invest in North Sea oil fields: fossil fuels. What climate crisis?

wrf12345

£40 a year for five years, not sure what happens if u r a "new" customer next year and have not had the £200