freezing the cap price

The_Green_Hornet

pochase said:

Maybe for the same reason why we are paying a higher standing charge to cover the for the money those with the suppliers that went bust would have lost otherwise. Or why do we all have to pay the additional cost for Bulb customers due to administration cost soon?

This is about solidarity, a bit like a backward insurance, you only start paying once there is a problem.

Instead of the 1.4 million bulb customers having to pay over £2000, we all (28.1 million households) will pay over £100 additional standing charges.

“The inherent vice of capitalism is the unequal sharing of blessings. The inherent virtue of Socialism is the equal sharing of miseries.”

Winston Churchill

MattMattMattUK

Staffordian11 said:

And surely even our disfunctional government could cut and paste what they did when they implemented the £400?

They could, if they wanted to and it would be politically expedient for them to do so, on that basis I very much doubt they will.

All these measures cost a lot of money, money that the state cannot really afford. The one merit of freezing the cap was the beneficial impact on inflation and interest payments, but even that was not a big enough reason to implement it. We are already a low tax nation, all the handouts effectively reduce our rate of tax further still. I would like to see people who really need it helped, but I am not sure blanket schemes are a good idea. 

jobdone1

In an ideal world it would be great, but like the COVID support two years on now look at the state of the UK books, it will be the same with freezing the cap two years on we will be back to square on and have an even bigger problem with the books. What is the answer? I have no idea

The_Green_Hornet

MattMattMattUK said:

Staffordian11 said:

And surely even our disfunctional government could cut and paste what they did when they implemented the £400?

They could, if they wanted to and it would be politically expedient for them to do so, on that basis I very much doubt they will.

All these measures cost a lot of money, money that the state cannot really afford. The one merit of freezing the cap was the beneficial impact on inflation and interest payments, but even that was not a big enough reason to implement it. We are already a low tax nation, all the handouts effectively reduce our rate of tax further still. I would like to see people who really need it helped, but I am not sure blanket schemes are a good idea. 

With the £550 they have (will have) handed me so far my annual electricity bill for the next twelve months will be down to £50. Any more universal payments and I will be making a profit.

fergie_

The simple reality is that worldwide supply needs to outstrip demand for prices to fall. There are 2 ways for that to happen - either increase supply or reduce consumption.

The increasing prices are certainly going to kickstart the latter, but the hardest hit will be those who can cut back no further.

PennineAcute

Before the onset of the increase, we were living in a country of cheap electricity and gas.  I saved a nice little earner going with the smaller, cheaper companies.  I also did not have to worry about my consumption - I could afford a nice long shower, watching TV, and so on.  I becamse oblivious to my usage.

Now, even though I tied in to a tariff in July, I have had to make changes.  I have two TVs, one in the bedroom and one in the lounge.   The bedroom's is around 13 years old and the lounge's around 6 years old.  Each TV uses more electricity than my PC - so if I want to watch TV, I do so on my PC.  I did have two fishtanks - one heated and one not.  I have had to give my heated fishtank away.  A couple of hours on my PS4 is now a luxury.  My dryer was deemed a necessity, now it is a luxury.

Heating will be interesting, as I have now moved home and do not know how much I will use compared to my old home.  If my usage is similar, I will survive.  If my usage is higher, I may be in trouble.  But with previously having cheap gas, I just put the heating on when I felt it was needed, not when it was needed.

This time two-years ago, I was paying £15 a month for gas and £25for electricity.  Now, if my figures are correct, I am paying £50 and £70 respectively - this is includes my current cost savings, but not future savings/increases - so it could be more or (hopefully) less.  Currently, between July 22 and July 23, I am looking at an increase of 166.67% compared to pre October '21. 

If I had been more careful when prices were cheaper, then the increase percentage would have been higher, but would not have things in the house which are now unused,as I wouldn't have had them in the first place - saving me money.

Trynsave2

Being a cynical old fart, I can't help wondering if the Government won't freeze the cap as an indirect way of encouraging the COVID home workers back to the office and out into the high street.

charliesf

Cough cough

https://www.theguardian.com/money/2022/aug/24/isle-of-man-to-freeze-electricity-prices-until-2023

The_Green_Hornet

charliesf said:

Cough cough

https://www.theguardian.com/money/2022/aug/24/isle-of-man-to-freeze-electricity-prices-until-2023

And to think the Guardian never used to like buy now pay later schemes.

artyboy

The_Green_Hornet said:

charliesf said:

Cough cough

https://www.theguardian.com/money/2022/aug/24/isle-of-man-to-freeze-electricity-prices-until-2023

And to think the Guardian never used to like buy now pay later schemes.

But at least in the IOM, people will still be able to afford a bright house...

I'll get my coat...