Quarterly cap change proposed

MattMattMattUK

Ultrasonic said:

Mstty said:

If only we could believe that the quarterly cap will mean quickest cap reductions as well as increased caps.....but I fear the market will follow other fuels and be quick to increase and slow to decrease.

The cap will follow the market, reacting to increases and decreases in price just as quickly. How the market may vary is a different question of course.

Isn't the current proposal that the reference period will be the previous six months, but the price will change every three, so there will be an element of delay or or lag in any price changes?

Mstty

Ultrasonic said:

Mstty said:

If only we could believe that the quarterly cap will mean quickest cap reductions as well as increased caps.....but I fear the market will follow other fuels and be quick to increase and slow to decrease.

The cap will follow the market, reacting to increases and decreases in price just as quickly. How the market may vary is a different question of course.

You believe that or that's a fact?

MWT

Mstty said:

Ultrasonic said:

Mstty said:

If only we could believe that the quarterly cap will mean quickest cap reductions as well as increased caps.....but I fear the market will follow other fuels and be quick to increase and slow to decrease.

The cap will follow the market, reacting to increases and decreases in price just as quickly. How the market may vary is a different question of course.

You believe that or that's a fact?

The calculation method will be public knowledge so there isn't room for anything other than following that method accurately.

Once we know the final decision we will be able to see if it is smoothed over 6 months, which would tend to slow the rise/fall, or if it will be just three months at a time which would be more volatile in both directions.

Ultrasonic

MattMattMattUK said:

Ultrasonic said:

Mstty said:

If only we could believe that the quarterly cap will mean quickest cap reductions as well as increased caps.....but I fear the market will follow other fuels and be quick to increase and slow to decrease.

The cap will follow the market, reacting to increases and decreases in price just as quickly. How the market may vary is a different question of course.

Isn't the current proposal that the reference period will be the previous six months, but the price will change every three, so there will be an element of delay or or lag in any price changes?

My point was it's the same for price increases and decreases.