MSE News: Regulator Ofgem could update the energy price cap every three months

MSE_Chris

Energy regulator Ofgem has announced today that it will be reviewing whether to update the energy price cap more regularly in future as a result of the "unprecedented rise in wholesale market prices and volatility". This follows its decision yesterday to increase the price cap by 54% – adding nearly £700 a year to the bills of 22 million households from April.

Read the full story here:
'Regulator Ofgem could update the energy price cap every three months'

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What_time_is_it

Given that there are local elections in May, I don't think there will be a review in 3 months time. Maybe from October it'll be every 3 months.

Grizzlebeard

What_time_is_it said:

Given that there are local elections in May, I don't think there will be a review in 3 months time. Maybe from October it'll be every 3 months.

They already said it won't happen till after October in the original announcement..

facade

Grizzlebeard said:

What_time_is_it said:

Given that there are local elections in May, I don't think there will be a review in 3 months time. Maybe from October it'll be every 3 months.

They already said it won't happen till after October in the original announcement..

I swear that I read in the earlier releases that they were going to revise the cap whenever there were "extreme situations", like war with Russia, ( or the wholesale market increasing prices ), but I can't find it now, only the reference to quarterly updates.

brewerdave

That really would make tariffs "variable" !!!

Grizzlebeard

facade said:

Grizzlebeard said:

What_time_is_it said:

Given that there are local elections in May, I don't think there will be a review in 3 months time. Maybe from October it'll be every 3 months.

They already said it won't happen till after October in the original announcement..

I swear that I read in the earlier releases that they were going to revise the cap whenever there were "extreme situations", like war with Russia, ( or the wholesale market increasing prices ), but I can't find it now, only the reference to quarterly updates.

Yes I read that too, but it will only happen (or not) sometime after October.

QrizB

Grizzlebeard said:

facade said:

I swear that I read in the earlier releases that they were going to revise the cap whenever there were "extreme situations", like war with Russia, ( or the wholesale market increasing prices ), but I can't find it now, only the reference to quarterly updates.

Yes I read that too, but it will only happen (or not) sometime after October.

Best hope we don't get any extreme situations in the next seven and a half months, then!

Grizzlebeard

QrizB said:

Grizzlebeard said:

facade said:

I swear that I read in the earlier releases that they were going to revise the cap whenever there were "extreme situations", like war with Russia, ( or the wholesale market increasing prices ), but I can't find it now, only the reference to quarterly updates.

Yes I read that too, but it will only happen (or not) sometime after October.

Best hope we don't get any extreme situations in the next seven and a half months, then!

If you've got an ongoing extreme situation with an ongoing series of extreme bumps on it, what do you call it. Single or plural?

It was stupid to call it a "loan", (Loan bad, debt-free good) but I think we have Loan v2, Loan v3, ...v17, on the way until they find a new crisis mitigation scheme. By 2026 the Standing Charge may include 17 x 11 pence's per day, 365 days a year.

All the Energy companies are going to be running  huge losses for the next 1-2 years simply honoring pre-crisis Fixed Term Tariffs.

Too scared to do the sums.

MWT

Grizzlebeard said:

All the Energy companies are going to be running  huge losses for the next 1-2 years simply honoring pre-crisis Fixed Term Tariffs.

Too scared to do the sums.

A good part of the risk there is with the wholesale suppliers with which our suppliers have hedged contracts.

That is where I'd be watching for the next round of problems if this continues.

The weakest of the suppliers have gone  for the most part, but remember it was a wholesale supplier failure that took out Zog, not their own reckless behaviour like some others...

savers_united

My understanding the cap was being abolished in 2023 anyhow, Ofgem stated it was never going to be permanent and by 2023 it would be removed.

QrizB

savers_united said:

My understanding the cap was being abolished in 2023 anyhow, Ofgem stated it was never going to be permanent and by 2023 it would be removed.

The cap has had several expiry dates but they've always been extended. No government has yet been brave enough to let it cease.