Opposition proposals to freeze the price cap - fair for people who have fixed?

spot1034

What_time_is_it said:

Having recently signed up to supplier who don't offer SVT (Green Energy) would I be able to switch to another supplier if I wanted to? Or are we potentially facing a situation where we are all "locked in" with our current providers?

This is one of the many details which this 'back of the fag packet' proposal does not consider - probably because no one was even aware of such details. Those who know more about it, including civil servants whose job it is to flag up potential difficulties in policy proposals, will now be making ministers who have to make the decisions aware of such points. One very important factor would be the time needed to consider all these potential pitfalls and find workable solutions. That alone is a good reason why this isn't a serious prospect - they've just left it too late. 

pochase

No supplier is forced to take you in. You could try the famous EDF  and Octopus who might take new customers.

It was even warned about exactly this scenario, that at the end of the fixed tariff you might be stuck with Green Energy UK. Maybe in a different context, but same scenario of finding a new supplier who offers SVT.

What_time_is_it

pochase said:

No supplier is forced to take you in. You could try the famous EDF  and Octopus who might take new customers.

It was even warned about exactly this scenario, that at the end of the fixed tariff you might be stuck with Green Energy UK. Maybe in a different context, but same scenario of finding a new supplier who offers SVT.

Easy mate. I did know the risks when I signed up. I still do. But I'm always looking for more information to be able to make better informed decisions. I would hope that should a prices cap be frozen or reduced then I would also have the option of switching to a provider who offers SVT. We'll see.

Seems unlikely that the Tories will go down this route anyway, at least not straightaway. Obviously they'll act at the last possible minute and only when they absolutely have to. They always do.

Ultrasonic

savers_united said:

As far as those who have fixed then its always a gamble you take, a few have been on here saying they are good for the next 2 years, you always have the option to leave and jump back onto the SVT if it works out cheaper, 

Are you CERTAIN about the point in bold. I asked about this above as I'm not. @What@What_time_is_it gives a relatively rare example but I'm not sure more widely either. Note that exit fees of a few hundred pounds have been increasingly common too.

In terms of the 'gamble' aspect I think there is a big distinction between people making an informed decision based on available information, and potentially the government ripping up it's own rules re. the price cap. Do you recall anyone anywhere warning people about this possibility when offering advice to others on whether to consider a fixed tariff or not? I don't.

savers_united said:

Final point, those on a cheap fix in band D and below have received a CT rebate, and in line for a £400 Gov't grant, do you think that is fair when someone on a SVT may be facing a energy rate 40-70% more?? 

I don't think either of those schemes made sense from the perspective of being poorly target to those that needed help. Your '40-70% more' comment depends on what is being compared but I agree that this sort of approach doesn't factor in what individuals may actually be paying.

QrizB

spot1034 said:

What_time_is_it said:

Having recently signed up to supplier who don't offer SVT (Green Energy) would I be able to switch to another supplier if I wanted to? Or are we potentially facing a situation where we are all "locked in" with our current providers?

This is one of the many details which this 'back of the fag packet' proposal does not consider - probably because no one was even aware of such details. Those who know more about it, including civil servants whose job it is to flag up potential difficulties in policy proposals, will now be making ministers who have to make the decisions aware of such points.

Hypothetically, if the government happened to be running its own energy supply company (perhaps under some sort of special administration) they could instruct it to accept SVT switches.

Mstty

What_time_is_it said:

pochase said:

No supplier is forced to take you in. You could try the famous EDF  and Octopus who might take new customers.

It was even warned about exactly this scenario, that at the end of the fixed tariff you might be stuck with Green Energy UK. Maybe in a different context, but same scenario of finding a new supplier who offers SVT.

Easy mate. I did know the risks when I signed up. I still do. But I'm always looking for more information to be able to make better informed decisions. I would hope that should a prices cap be frozen or reduced then I would also have the option of switching to a provider who offers SVT. We'll see.

Seems unlikely that the Tories will go down this route anyway, at least not straightaway. Obviously they'll act at the last possible minute and only when they absolutely have to. They always do.

Yes that was a bit gloatish in my opinion.

I don't think the Tories will go down this route but conversely if Truss does get in and refunds green levies I don't think that will apply to green energy UK as in the back of my mind they don't pay the levies? Happy to be corrected so no mt confirmed as yet.

Octopus are still taking on new customers over the phone and with no exit fees you will have a route out if you believe the leader of the opposition has any control over the policies of the incumbent government.

Mike360

Opposition proposals to freeze the price cap - fair for people who have fixed?

Answer: The freeze won't happen. The Tory's won't back a Labour proposal. So any further help (if it happens) would be by other means.

I am on a Green Energy price fix and am not concerned by what Labour said they would do.

Ultrasonic

Mike360 said:

Opposition proposals to freeze the price cap - fair for people who have fixed?

Answer: The freeze won't happen. The Tory's won't back a Labour proposal. So any further help (if it happens) would be by other means.

I am on a Green Energy price fix and am not concerned by what Labour said they would do.

Whilst I don't think the government is likely to exactly copy the opposition proposal, it does place the option of artificially setting the price cap at some lower level firmly on the table so a discussion around the implications is worthwhile I think. 

What_time_is_it

Whilst I don't think the government is likely to exactly copy the opposition proposal, it does place the option of artificially setting the price cap at some lower level firmly on the table so a discussion around the implications is worthwhile I think. 

I agree. I can see a groundswell of public opinion forming around this that will make it inevitable that at some point the government, reluctantly and embarrassingly, will be forced to announce a watered-down version of it. 

[Deleted User]

Mike360 said:

Opposition proposals to freeze the price cap - fair for people who have fixed?

Answer: The freeze won't happen. The Tory's won't back a Labour proposal. So any further help (if it happens) would be by other means.

I am on a Green Energy price fix and am not concerned by what Labour said they would do.

Even the present PM’s sister is loudly questioning one of the prospective PM’s plans to increase prosperity through growth. My guess is that the reality of the situation will hit the new PM the moment that he/she gets the keys to No 10.

Labour’s plan was first mooted by an energy supplier in the early part of this year. The Cap would become Absolute - that is, a ceiling rather than a floor. Suppliers would be funded for the costs/profit lost via a commercial loan. The commercial loan would be re-paid by energy consumers over a number of years. It was described as a price smoothing exercise.

My ‘guess’ is that something like this could be brought in. Politicians of any political persuasion cannot ignore the fact that a Cap held for 12 months will have a significant effect on inflation and the cost of future Government borrowing.