Quarterly cap change proposed

Fairzo

As expected

https://www.bbc.co.uk/news/business-61462584

Ultrasonic

Probably a good thing to reduce the risk of companies going bust (a bit late!) but it's going to make advice here even harder to give.

Fairzo

Ultrasonic said:

Probably a good thing to reduce the risk of companies going bust (a bit late!) but it's going to make advice here even harder to give.

At least twice yearly provided a rough winter and summer split. Quarterly / seasonal may well complicate the whether to stick or fix question (as if it isn't complicated enough).

brewerdave

I found one part of the OFGEM statement hard to swallow
 "Ofgem's chief executive Jonathan Brearley said: "Today's proposed change would mean the price cap is more reflective of current market prices and any price falls would be delivered more quickly to consumers."
Does ANYONE believe that the energy prices are going to fall by any significant amount ,anytime soon ?

Chrysalis

This will make SVR less attractive and fixed more attractive now, as currently SVR is effectively a 6 month fixed deal.  At least it wont happen any earlier than October so people who are using SVR now on the basis they were secure in price until October wont be screwed over.

@brewerdave yep this is likely in response to pressure from the industry.

Sea_Shell

Chrysalis said:

This will make SVR less attractive and fixed more attractive now, as currently SVR is effectively a 6 month fixed deal.  At least it wont happen any earlier than October so people who are using SVR now on the basis they were secure in price until October wont be screwed over.

@brewerdave yep this is likely in response to pressure from the industry.

Do we know this?

So would the first "new" cap review come into effect from 1st January 23?...based on the average over Aug, Sept, October??  Announced November, effective January?

Or will they move the dates about?



How messy!!   People won't know whether they're coming or going and whether to fix or not.

ML will have great trouble trying to fit advice into his half hour TV show!!!

Chrysalis

Sea_Shell said:

Chrysalis said:

This will make SVR less attractive and fixed more attractive now, as currently SVR is effectively a 6 month fixed deal.  At least it wont happen any earlier than October so people who are using SVR now on the basis they were secure in price until October wont be screwed over.

@brewerdave yep this is likely in response to pressure from the industry.

Do we know this?

So would the first "new" cap review come into effect from 1st January 23?...based on the average over Aug, Sept, October??  Announced November, effective January?

Or will they move the dates about?



How messy!!   People won't know whether they're coming or going and whether to fix or not.

ML will have great trouble trying to fit advice into his half hour TV show!!!

I got the info from the BBC article, they need to consult on it first, its currently only a proposal, October was quoted as the earliest possible date for it to kick in.

Sea_Shell

Thanks, just found it...

BBC - Ofgem said it is launching a consultation and hopes that it can introduce quarterly price cap reviews from October to "support the sector through a potentially challenging winter".


Interesting use of the words "the sector".... Not for customers benefit then! 😉

GingerTim

Martin's not happy about it

https://twitter.com/MartinSLewis/status/1526124034748035073?s=20&t=oqAywcmUifuLy6gTDyG2Lw

Chrysalis

Sea_Shell said:

Thanks, just found it...

BBC - Ofgem said it is launching a consultation and hopes that it can introduce quarterly price cap reviews from October to "support the sector through a potentially challenging winter".


Interesting use of the words "the sector".... Not for customers benefit then! 😉

Sorry for not quoting it, had to rush off for a moment, and was going to when I came back, you found it which is good.

Thrugelmir

Sea_Shell said:

Chrysalis said:

This will make SVR less attractive and fixed more attractive now, as currently SVR is effectively a 6 month fixed deal.  At least it wont happen any earlier than October so people who are using SVR now on the basis they were secure in price until October wont be screwed over.

@brewerdave yep this is likely in response to pressure from the industry.

Do we know this?

So would the first "new" cap review come into effect from 1st January 23?...based on the average over Aug, Sept, October??  Announced November, effective January?

Or will they move the dates about?



How messy!!   People won't know whether they're coming or going and whether to fix or not.

ML will have great trouble trying to fit advice into his half hour TV show!!!

Little different to the mortgage market.