Current energy tarrif

roiperez

Hey folks
I hoped someone could help me? 
My new energy tarrif in the new October rise is £1888 per year. 
Am I right in thinking that with the £400 from the government - my payments would only be £124 (based on 1488/12) 
Octopus is offering a fixed 'loyal' customer tariff of £157 so I was wondering if I should bother really
any guidance welcome  

pochase

No your energy supplier will not deduct the £400 upfront, before they receive the money or even know how they will get the money. It seems currently the government does not want to pay over the money and asks the the suppliers to keep corporation tax and VAT until the money owed to them is reached. As that would take years they refuse to do that and want the money paid over to them.

So at the moment the £400 is a promise, but nobody knows how it will work, we don't even how "£400 over 6 months" will work. Many read it as 6 x 66.66 credit for six months, but it could also be the first group get £400 in October, the next in November etc, even so it is unlikely.

roiperez

pochase said:

No your energy supplier will not deduct the £400 upfront, before they receive the money or even know how they will get the money. It seems currently the government does not want to pay over the money and asks the the suppliers to keep corporation tax and VAT until the money owed to them is reached. As that would take years they refuse to do that and want the money paid over to them.

So at the moment the £400 is a promise, but nobody knows how it will work, we don't even how "£400 over 6 months" will work. Many read it as 6 x 66.66 credit for six months, but it could also be the first group get £400 in October, the next in November etc, even so it is unlikely.

This makes sense, thanks so much. I think I might stay with how things are for now and see how we go. Theres just too many variables to be able to make a solid decision.