MSE News: Energy firms confirm new rates under the new price cap

Woggle1

What I don't understand is that my energy supplier, Octopus, who we have been with for a few years now, claims it supplies us with electricity from 100% renewable sources. I understand that Gas and Oil prices have risen and that is going to effect the price we pay for gas. However it should not affect electricity prices where that electricity is not generated using any gas or oil. I can see no reasonable rational why renewable electricity providers should be allowed to put up their prices. It is not costing them anymore to generate their electricity! A small rise maybe, but a massive rise to the price cap no way. It seems that the renewable electricity providers are trying to make massive proffits.

QrizB

Woggle1 said:

What I don't understand is that my energy supplier, Octopus, who we have been with for a few years now, claims it supplies us with electricity from 100% renewable sources. I understand that Gas and Oil prices have risen and that is going to effect the price we pay for gas. However it should not affect electricity prices where that electricity is not generated using any gas or oil.

Take a read of this article at The Conversation that explains it in more detail than I can:

https://theconversation.com/renewables-are-cheaper-than-ever-so-why-are-household-energy-bills-only-going-up-174795

mikecut123

I am with Scottish Power, and currently on fixed price deal. I pay £120 per month which covers my gas / electric bills. SP tell me my fixed price tariff from 1/4/2022 will be £500 per month. Will revert to standard variable tariff. Why an increase of over 400% !!

MattMattMattUK

mikecut123 said:

I am with Scottish Power, and currently on fixed price deal. I pay £120 per month which covers my gas / electric bills. SP tell me my fixed price tariff from 1/4/2022 will be £500 per month. Will revert to standard variable tariff. Why an increase of over 400% !!

Your current fixed deal is ending, you are going onto the SVR, the rates are considerably higher. I would also hazard a guess that the £120pcm has not covered your bills, so they will also be looking to cover the deficit. 

Sheepster

Bottom line as I see it, the energy companies and their apologists can whine all they want about why standing charges are increasing. Reality suggests they know full well desperate people are having to sit freezing in duvets so they can still afford to eat. “Oh we can’t have this, people saving money” say the energy companies. “Oh we can’t have them using less and hitting our profits” say the energy companies….. so they will hike the charge the people have absolutely no control over and damn the poorer and vulnerable.

BT did exactly the same when a few years back those bypass number companies sprouted up where you could charge your calls and get them cheaper. BT constantly put up the line rental and bragged they were bringing down the cost of calls. NO, it’s the line rental we wanted reducing but BT knew we’d all just take our call business elsewhere. This way they could continue to squeeze the customer.

And this is just the same. Sit there freezing, they will still whip you 

EssexHebridean

I’ve not see anyone here “whining about why standing charges are increasing” - perhaps you meant “helpfully explaining the reasons for the standing charge cost”? I’ve also not seen anyone here acting as an apologist for the energy companies - simply people presenting facts. I appreciate that the facts don’t suit your rhetoric, but being rude to people who are actually providing useful, solid help to people in an extremely challenging situation is utterly pointless. If you want to be rude to someone with some influence instead, try writing to your MP. It’ll have more effect (and more still if you manage to keep the insulting comments under wraps) but right now you’ll get much the same answers. Perhaps explain in your correspondence that you’re not interested in the factual details? 

Oh - and for customers on the SVR and those on legacy fixes, there have been no profits for the energy companies over the past 6 months certainly, probably closer to a year.  

MattMattMattUK

Sheepster said:

Bottom line as I see it, the energy companies and their apologists can whine all they want about why standing charges are increasing.

The reality is you either understand what the standing charge is there to cover, or you do not, either through deliberate choice, or refusing to read the information available, the choice is up to you.

Sheepster said:

 “Oh we can’t have this, people saving money” say the energy companies. “Oh we can’t have them using less and hitting our profits” say the energy companies….. so they will hike the charge the people have absolutely no control over and damn the poorer and vulnerable.

The energy providers are losing money ,not making profits at the moment, they are being forced to sell something below cost. They have not "hiked" the standing charge people have no control over to "damn" people, they have raised the cost, in line with the Ofgem guidelines, to cover the costs the standing charge is there to cover. 

Sheepster said:

BT did exactly the same when a few years back those bypass number companies sprouted up where you could charge your calls and get them cheaper. BT constantly put up the line rental and bragged they were bringing down the cost of calls. NO, it’s the line rental we wanted reducing but BT knew we’d all just take our call business elsewhere. This way they could continue to squeeze the customer.

In the past calls subsidised line rental, as almost all the cost of domestic calls is pretty much zero, but the cost now lays in the network provision, they have changed the pricing model, just as broadband suppliers do, mobile providers do etc. It is nothing do to with "continue to squeeze the customer", it is about having a viable business model, one that does not make a loss.

Sheepster said:

And this is just the same. Sit there freezing, they will still whip you 

There is no whipping, but if you view everything through an emotional lens, with no facts then you will take such a view. 

If you think you can do better, if you are willing to run an energy provider, or telecoms provider, or any other business at a perpetual loss then go ahead and set up your own loss making business, but you might find that it does not last very long and that is if you even manage to get it off the ground. Also, if you took the time to look at the margins on the energy providers, or the telecoms providers, you would realise that they make small margins, in normal times in the region of 2-4%, with energy providers currently losing money, which is why so many have gone bust. 

ScoobyZ

Just seen this on Youtube. Might explain where the gov should be looking to cut bills:

MattMattMattUK

ScoobyZ said:

Just seen this on Youtube. Might explain where the gov should be looking to cut bills:

Not everything you see on YouTube is real or correct, this is one of those cases. 

micadog

My previous deal with BG ended and I took up their offer of another deal.  The problem is my new deal is until 2024.  The unit rate is 30.318p, and the standing charge is 41.105p.   Are they allowed to charge me more for the unit rate? On Martins page it says unit rate 28.34p. I realise that while the unit rate may be more expensive, the standing charge is cheaper.  I am not a mathematician but I think it will still work out more.  I am not sure what to do.  Should I do nothing because come October and the next rise I should be 'quids' in. Would welcome other opinions please.