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How can I opt out of the £200 energy scheme?

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  • GingerTim
    GingerTim Posts: 2,597 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    GingerTim said:
    You can't, it's a universal measure applied to every bill, not to an individual.
    If that's the case what happens if you move out of a house your not paying gas or electric and then move into a new home in November? Will you be happy to then pay back £200 that you never received over 5 years?

    If you move out of a home you are paying gas and electric and move back in with parents will the next occupant have to pay your debt on the the property?

    If you move suppliers will they expect payment in full before leaving?

    It's a total Shi t show designed to get every household into debt with their energy supplier to then allow them to claw back costs perpetually.

    I'm not saying it's a good idea, but in order of question:

    • If you move into a new home then yes, your bill will have an extra £40 in the standing charge for the five years from 2023.
    • If you moved back in with your parents, yes, the person moving into your former property will have an extra £40 in the standing charge for the five years from 2023.
    • If you move suppliers, no, they will not expect payment in full before leaving. Instead your new supplier will levy an extra £40 in the standing charge for the five years from 2023.
    Again, I'm not saying it's the best idea in the world, but it is very simple - all of us, whether on a variable or fixed tariff, will be paying an extra £40 in the electricity standing charge for the five years from 2023.
  • PennineAcute
    PennineAcute Posts: 1,185 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    All these people who are so against this £200 have yet to come up with a more realistic alternative.  Some people can cause an arguement in an empty room.


  • molerat
    molerat Posts: 34,524 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 4 February 2022 at 3:55PM
    There are lots of things we have to pay for through various taxes and levies whether we want to or not, at least I will get a benefit from this one and it will be up front !  They could target it at those most in need and make us all pay but that would likely be an organisational nightmare and end up costing us even more.
  • All these people who are so against this £200 have yet to come up with a more realistic alternative.  Some people can cause an arguement in an empty room.


    One CEO was promoting this scheme quite heavily with suggestions that industry should be taking up a commercial loan. We should be grateful that Government action will not result in interest payments being added to our bills. In truth, some of this pain could have been avoided had the Government developed a coherent energy supply policy that was not so dependent on Worldwide price fluctuations. I now favour the abolition of green taxes on bills (ie; the taxes should be moved to general taxation) and I would be looking again at fracking to get us through what could be a difficult and expensive few years.
  • What_time_is_it
    What_time_is_it Posts: 867 Forumite
    500 Posts Third Anniversary Name Dropper
    edited 4 February 2022 at 4:27PM
    Dolor said:
    All these people who are so against this £200 have yet to come up with a more realistic alternative.  Some people can cause an arguement in an empty room.


    One CEO was promoting this scheme quite heavily with suggestions that industry should be taking up a commercial loan. We should be grateful that Government action will not result in interest payments being added to our bills. In truth, some of this pain could have been avoided had the Government developed a coherent energy supply policy that was not so dependent on Worldwide price fluctuations. I now favour the abolition of green taxes on bills (ie; the taxes should be moved to general taxation) and I would be looking again at fracking to get us through what could be a difficult and expensive few years.

    PennineAcute - I prefer the approach that France has taken, but there are many alternatives that other governments are pursuing.

    The UK approach so far is woefully inadequate and I'm certainly not going to bend over and say thank you sir, can I have another.
  • swaledale_one
    swaledale_one Posts: 92 Forumite
    Fourth Anniversary 10 Posts Name Dropper
    edited 4 February 2022 at 4:26PM
    GingerTim said:
    You can't, it's a universal measure applied to every bill, not to an individual.
    If that's the case what happens if you move out of a house your not paying gas or electric and then move into a new home in November? Will you be happy to then pay back £200 that you never received over 5 years? If you move out of a home you are paying gas and electric and move back in with parents will the next occupant have to pay your debt on the the property? If you move suppliers will they expect payment in full before leaving? It's a total mick take designed to get every household into debt with their energy supplier to then allow them to claw back costs perpetually.
  • QrizB said:
    How are they going to collect this though?  It cannot be added to the elec rates, otherwise the chances of paying exactly £40 pa is near zero. 
    You can also imagine the energy companies complaining of the administration costs needed to add £40 per year to a bill. So either the customers will get higher charges to administer this or we will pay this back through taxes as the government.
    Ofgem will roll it into the policy costs and will reclaim it for the government. No extra admin required outside of Ofgem's beancounters.
    Ofgem don't have access to individual household accounts or details they also don't have the ways or means to take any payments of any sort.
  • MWT
    MWT Posts: 10,196 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    QrizB said:
    How are they going to collect this though?  It cannot be added to the elec rates, otherwise the chances of paying exactly £40 pa is near zero. 
    You can also imagine the energy companies complaining of the administration costs needed to add £40 per year to a bill. So either the customers will get higher charges to administer this or we will pay this back through taxes as the government.
    Ofgem will roll it into the policy costs and will reclaim it for the government. No extra admin required outside of Ofgem's beancounters.
    Ofgem don't have access to individual household accounts or details they also don't have the ways or means to take any payments of any sort.
    The suppliers have obligations to make payments which Ofgem manages, that is how it will be recovered, and the suppliers have all the account details which is how it will be paid...

  • QrizB
    QrizB Posts: 18,034 Forumite
    10,000 Posts Fourth Anniversary Photogenic Name Dropper
    QrizB said:
    Ofgem will roll it into the policy costs and will reclaim it for the government. No extra admin required outside of Ofgem's beancounters.
    Ofgem don't have access to individual household accounts or details they also don't have the ways or means to take any payments of any sort.
    Fortunately for Ofgem, they don't need access to individual household accounts. If policy costs go up, suppliers will recover these from their customers.
    N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Vodafone BB / iD mobile. Ripple Kirk Hill member.
    2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 34 MWh generated, long-term average 2.6 Os.
    Not exactly back from my break, but dipping in and out of the forum.
    Ofgem cap table, Ofgem cap explainer. Economy 7 cap explainer. Gas vs E7 vs peak elec heating costs, Best kettle!
  • Astria
    Astria Posts: 1,448 Forumite
    1,000 Posts Second Anniversary Name Dropper
    edited 4 February 2022 at 4:40PM
    QrizB said:
    How are they going to collect this though?  It cannot be added to the elec rates, otherwise the chances of paying exactly £40 pa is near zero. 
    You can also imagine the energy companies complaining of the administration costs needed to add £40 per year to a bill. So either the customers will get higher charges to administer this or we will pay this back through taxes as the government.
    Ofgem will roll it into the policy costs and will reclaim it for the government. No extra admin required outside of Ofgem's beancounters.
    Ofgem don't have access to individual household accounts or details they also don't have the ways or means to take any payments of any sort.

    No, but they can do a blanket "Add 11p to the SC of every customer of an energy provider that isn't on a fixed rate". The energy companies will bill the customer and hand the cash over to the government just as they do now. This could mean you'll be paying back over £200 at the end of it but when has anything ever been fair.
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