Energy Firms

Sea_Shell

facade said:

Sea_Shell said:

It could all get a bit eek, if the price of gas goes way above what the price cap is set at for the April-October period.

How would the remaining suppliers fair, if the price got consistently over 300p per therm??

Ofgem said that they would review the cap before October to prevent more energy firm bailouts if Something Bad happened, like a European boycott of Russian gas massively increasing the market prices of Norwegian & North Sea gas.

(I suspect that most of Europe would sell out Ukraine in a heatbeat if it means that gas is 4p per kWh rather than 40, I can't see a boycott lasting into the autumn tbh)

And how confident are we all that Ofgem will be "on the ball" and act quickly and decisively, if Something Bad, did happen?  

Or if something happens more gradually, like a more steady increase, will they just be a "boiled frog"?

Sea_Shell

Also.   How much "pain" do you think the British public could withstand, if the cap did need to increase even more, and earlier than, October?

GOV.UK would no doubt be expected to step in, again.    Especially if rates got super silly.

brewerdave

Sea_Shell said:

Also.   How much "pain" do you think the British public could withstand, if the cap did need to increase even more, and earlier than, October?

GOV.UK would no doubt be expected to step in, again.    Especially if rates got super silly.

What will happen is that more and more people will fall into horrendous arrears - the utility cos. will want to put them on to PAYG rates but there are still a considerable number of people without switchable SMETS meters; the Court system/supplier fitters won't cope with all the applications to fit new meters so the Govt. will have to make some pretty big decisions on procedures for energy arrears.