Energy price cap to rise to £2,800 in October: OFGEM Chief Exec

Mstty

agentcain said:

Ultrasonic said:

Alnat1 said:

I reckon this is scaremongering by the energy companies so more people will opt for the oh so expensive fixed rates being offered.

It's not. This came from OFGEM, and there is a specific calculation that determines the new price cap rather than it being something that the energy supply companies concoct.

And yet the OFGEM has "warned", nothing is cast in stone. OFGEM once again doesn't provide much value. Warnings are great if you actually do something about them but I don't see what people who are on the receiving end can do much. Its not like any of us can run coal factories again, issue windfall tax or reduce VAT on demand, things that the government can actually do if they want to.

If the warning is true and the source does appear genuine as Ofgem then it gives people being offered fixes the ability to beat that rise. So in that particular scenario it could save some people money in the next 12 months.

fergie_

Not when the ‘fixes’ already price in the expected future increases.

The market needs to be reset in a way that allows competition, but safe guards against company failures.

Ultrasonic

fergie_ said:

Not when the ‘fixes’ already price in the expected future increases.

The market needs to be reset in a way that allows competition, but safe guards against company failures.

Well, there is some competition in the fixed tariff market. It's the SVTs where there is basically none.

Undisputedtruth

Zandoni said:

It’s been explained so badly on the news, they are making it sound like £2800 is the most you can pay.

Fully agree. The headlining is pure hog wash.

Considering my gas bill is considerably larger than my electricity's, my energy  bills will rise much more than the 42 per cent being touted this autumn.

Ultrasonic

agentcain said:

Ultrasonic said:

Alnat1 said:

I reckon this is scaremongering by the energy companies so more people will opt for the oh so expensive fixed rates being offered.

It's not. This came from OFGEM, and there is a specific calculation that determines the new price cap rather than it being something that the energy supply companies concoct.

And yet the OFGEM has "warned", nothing is cast in stone. OFGEM once again doesn't provide much value. Warnings are great if you actually do something about them but I don't see what people who are on the receiving end can do much. Its not like any of us can run coal factories again, issue windfall tax or reduce VAT on demand, things that the government can actually do if they want to.

Yes but my point was it's surely a warning based on an idea of how the calculations will pan out rather than just a number made up by energy supply companies to 'scaremonger people into taking out expensive fixed contracts'.

Mstty

fergie_ said:

Not when the ‘fixes’ already price in the expected future increases.

The market needs to be reset in a way that allows competition, but safe guards against company failures.

Actually there are some deals just 19% above the current price cap that some could consider during this period of low energy usage ready for the Octobe rises. 

What fixes look like come June could be interesting

Undisputedtruth

Uxb1 said:

Benny2020 said:

We have massive amounts of oil and gas reserves here but local councils will not allow drilling/extraction.

No we don't
The N.Sea started to wind down from around 2003 - it's now a busted flush
Fracking is not going to be the success it is in the USA due to our different geology of the deposits.

Look its really is simple
1. The "easy" deposits of oil and gas have been found and extracted, the rest to find and get are going to be very expensive, increasingly so as time goes on and are probably going to send the green lobby nuts.
Eventually one day, the world's deposits will run out totally.

2. The Green Lobby in the UK have screwed over the UK royally in the opposition to nuclear power. just think if we started 30 years ago we could have by now a whole succession of plants to replace the ageing early nuke stations. As already stated their is not a lot of solar and wind on a typical January day in the UK with an anticyclone high pressure zone sitting stationary over the UK.

3. To cap it off we close our coal industry down and go gas - this makes our enviro' credentials look wonderful as the pollution dropped enormously - but makes us very vulnerable to external supplies now that item 1 has occurred....not that anyone outside the power generation sector cared.

4. Finally we, as in the "West" now decide to pick a fight with a major supplier of our energy inputs (gas) - that being Russia.

You wait until you see food prices - food is grown with fertilizers as the only way to get the yield rate high enough to satisfy our needs - a major component in the production of fertilizer is gas
and that's before the antics in Ukraine and it's current non-supply of grain to the world.

As to the future it all depends how desperate we in the UK get.  I can forsee us re-opening the coal mines and going back to generating town gas from coal and sod the environment. That would get us 50 years until those reserves run out by which time hopefully fusion might have come good........yeah I know!

Looks like you've been spending too much time on the climate change deniers' websites!

Nuclear power isn't really the answer for a myriad of reasons. They are expensive to build. They take a long time to build with costly overruns. The strike price of nuclear power is more than twice that of wind power. It also mean our electricity bills will be expensive for several decades to come in order to recoup the cost of capital expenditure. Plus more additional funds to dispose nuclear waste from the tax payer.

Wind power has provided the UK with cheap electricity. Fully agree the electricity generated is intermittent but currently there's a lot of research being done on energy storage. So it's perfectly feasible that we can capture wind generated electricity at different periods of the year and use it on demand.

Doubt whether coal mines are re-opening again particularly when green hydrogen is on the horizon.

Undisputedtruth

https://www.youtube.com/watch?v=4TenksrSL_0&ab_channel=SkyNews

This is an interesting video where the presenter makes the case that we should be paying less for our gas at this moment in time.

QrizB

GingerTim said:

https://www.bbc.co.uk/news/business-61562657

The boss of the UK's energy regulator has warned that the energy price cap is expected to rise to around £2,800 in October.

I don't think anyone else has posted the link to where Ofgem have published the letter:

https://www.ofgem.gov.uk/publications/letter-jonathan-brearley-chancellor-and-secretary-state-business-energy-and-industrial-strategy-default-tariff-cap

It makes interesting reading.

bristolleedsfan

QrizB said:

GingerTim said:

https://www.bbc.co.uk/news/business-61562657

The boss of the UK's energy regulator has warned that the energy price cap is expected to rise to around £2,800 in October.

I don't think anyone else has posted the link to where Ofgem have published the letter:

Posted 30 minutes earlier 
https://forums.moneysavingexpert.com/discussion/comment/79225945/#Comment_79225945