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

Spies

Any proposals wont happen before October anyway so I wouldn't worry about it being 'unfair' to fixers.

jimexbox

29 billion to freeze the cap for 6 months, no matter what your income. Not good value. 

Far better to use our tax system to give the low paid a tax cut, then taper the upper rate to claw it back for those on a higher income. While increasing benefits for the those who already claim.

Yes I'm sure higher earners are feeling the pain, although nowhere near as much as those on 20k.

Ultrasonic

Spies said:

Any proposals wont happen before October anyway so I wouldn't worry about it being 'unfair' to fixers.

I don't follow your logic?

What_time_is_it

Spies said:

Any proposals wont happen before October anyway so I wouldn't worry about it being 'unfair' to fixers.

There will definitely be government proposals before October. The price cap will announced on August 26th, and we will have a new Prime Minister a week or so later who will want the "new manager boost" to borrow a term from football. She will announce an emergency budget straight away as by then it will be the only issue everybody is talking about. No idea what will be announced but it will be something different from the current package and will be implemented as soon as possible.

pochase

I think it is the opposite way, the later this would be announced the more people who have fixed are punished.

I have for example fixed already in February, payed a high penalty in March for fixing and at the moment every months is £20 to £30 more expensive than the current cap. 

I doubt that anybody is going to pay me back the money I spend paying a more expensive fixed tariff already for 6 months. 

If there would be a decision now, I could exit the tariff and save about 50£ until October.

So why is it not unfair to those who fixed if it is only happening in October?

Ultrasonic

What_time_is_it said:

The price cap will announced on August 26th,

I wonder if it will, or if any such announcement may be delayed...

What_time_is_it

Ultrasonic said:

What_time_is_it said:

The price cap will announced on August 26th,

I wonder if it will, or if any such announcement may be delayed...

Very possible it could be put back until the new PM is announced. Would create another couple of weeks of totally unnecessary uncertainty and worry though.

Section62

jimexbox said:

29 billion to freeze the cap for 6 months, no matter what your income. Not good value. 

There's also the issue of whether a 'freeze' is really a short-term measure, or if energy prices are going to be at much higher levels long-term.

To achieve net zero the user cost of fossil fuels needs to increase, whether through raw material costs or taxation.

At some point in time any 'freeze' on the cap would have to be removed, with cost-of-living implications whenever that happens.

And the situation partially mirrors the freeze (abandonment) of the (road) fuel duty escalator, which various opposition politicians have expressed outrage over (and want reinstated).

Section62

What_time_is_it said:

Ultrasonic said:

What_time_is_it said:

The price cap will announced on August 26th,

I wonder if it will, or if any such announcement may be delayed...

Very possible it could be put back until the new PM is announced. Would create another couple of weeks of totally unnecessary uncertainty and worry though.

Ofgem are an independent regulator. It would be irregular if they delayed fulfilling a statutory function over an internal party political matter.

Ultrasonic

I do think that if there is a price 'freeze' that the April price cap is probably too low a level for this, removing a desirable cost incentive for the better off to reduce energy consumption (for reasons both of the current supply issues and climate change).