Anyone else feeling a little sick right now

YorksLass

Our current dual fuel fix finishes at the end of this month and our supplier (eon) sent a reminder in July with two offers to consider, one the SVR and another 1-year fix with no exit penalty.  After much careful thought, checking our usage and what else was available elsewhere (nothing), we went for the fix.  Our DD will increase from £80 pm to £250 pm from September (ouch) and yes, we'll be overpaying in that month but not from October onwards when the new price cap kicks in.  Glad we took the plunge when we did, given today's news.

We're low users, send monthly meter readings and check our month on month / year on year usage.  Electricity is roughly the same every month (can't cut back any further on that) and, as expected, gas usage is much higher in winter (during the warmer months it's only for hot water).  We're a pensioner household (one relatively fit 73 year old, the other a mobility impaired 81 year old) and are having to cut back as much as we can to afford the new DD.  Any spare cash is being squirrelled away towards that too.  If prices continue to spiral, then I have no idea how we'll manage at the end of the new fix so, yes, I do feel sick sometimes.

Swipe

When my cheap fix comes to an end next April I think I'll be doing a @HertsLad

artyboy

spot1034 said:

Looking on the bright side - at some point this seemingly unstoppable rise in prices will come to an end. Several factors might bring this about including  a mild winter, an easing of tension between Russia and the west (perhaps Putin 'removed' in one way or another) and a concerted effort by politicians across the world to ease supply problems in the next decade or so. That last one will take a while to bear fruit, but just a sign that it's being done will tend to bring more confidence to markets and ease the panic that there clearly is at present.

When that happens, we could see future prices fall quite sharply. I don't think it will happen for a while, perhaps not for a year or more, but when it does that should mean suppliers will be able to agree contracts at lower rates than we are seeing right now, and that should finally bring some more cheer to the retail market. 

It will happen, it's just a question of when.

Isn't that first statement exactly what prospective FTBs have been thinking about house prices for years/decades now?

Yes I know, different macro economic and political factors, but nonetheless, the rise goes on and seems to keep taking us by surprise. So I hope you're right, and you probably are. But I'm taking nothing for granted - especially if the West's war-fatigue sets in and funding for Ukraine dries up - barring Russian appeasement we could really be in for the long haul with energy prices.

In the long term, this is really likely to be the catalyst for reduced energy use, better efficiency, and more renewables - but it's going to be an incredibly long and painful ride, and I just wonder what the political shift might be after the first few hundred people are found starved and/or frozen to death this winter... 

Sea_Shell

I don't feel sick for myself, but I do worry about the impact on family (who I've tried to warn/help, but have buried their head in the sand) and the wider socioeconomic fallout that will come from the crisis.

☹️

ZolaBuddy

I have a two year electricity fix with SSE from June this year, which I am immensely pleased about (in relative terms) and I can budget pretty well for that.

But my fixed with So Energy ended last month with no fixes offered. Am back on the SVT set back in April, which is okay but I know things will get messy come October and January. Fortunately I have saved over the last few minutes for just an eventuality, even giving up holidays and new gadgets.

I have been telling my friends and work colleagues to open their eyes and take a reality check with regards the pending storm. Have been doing this since before the last Price Cap rise in April. And yet some of them still are in denial and just won't save or doing anything to prepare for the massive rises we can expect over the next 12 months.

It's also going to be a pretty lean Christmas for some, having to decide between presents or heating. 

Swipe

Energy prices may eventually come down but I bet they won't be lowering the standing charges now they have hiked them

fryedslyce

The energy companies will end up with a whole load of bad debt on their books. I think they'll be emergency legislation, not to help the consumer but to help the energy companies. The Government will make it easier and quicker for prepayment meters to be fitted, probably by allowing the energy companies to bypass the courts.

I can also see energy companies making prepayment meters the default, only those who are willing and able to keep their account in substantial credit will be allowed credit meters.

annetheman

Well, I've learned more about the way the energy market works.

That small bit of additional knowledge has helped me feel less angry, actually. I'm seeing that the cause of the problem is so far removed (the actual energy generators, Shell, BP etc) from the company sending my bill, I am not going to bother trying to find a way around it - it's actually not Octopus/etc's fault; they're probably going to scrape through.

Instead, I'm joining the use-as-little-as-possible crew. Go into work more often (WFH) to take advantage of the warmth. And I'm on a higher wage!

Northern_Wanderer

I suppose us householders should be thankful that we are not having to pay business rates!

I remember saying to my mother last autum/ winter after Symbio and Zog went bust that the fixes we were being advised NOT to take might look very cheap if we fast forwarded to the future. My crystal ball was right but hindsight is a great thing.

The world has been making me feel sick for a good few years now and there never seems to be much respite before the next crisis. Best to try to find joy in the important things and not linger in the doldrums long.

pearl123

artyboy said:

spot1034 said:

Looking on the bright side - at some point this seemingly unstoppable rise in prices will come to an end. 

Some reports have said it could end somethime in 2024. Scary.