I wish I was in the Isle of Man, just for the energy price freeze there

charliesf

Well the Man Government have stepped up over there and frozen prices until March 2023.

Wish our government would step up.

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

elsien

“Under a deal struck between the government of the crown dependency and the island’s electricity provider, Manx Utilities, the increases will instead be added to customers’ bills over a longer period of time from April.”

So it’s not frozen for a year, it’s frozen for 6 months with customers still paying the full amount in the long run. 

sienew

Except they haven't really frozen then. They've pretty much just signed everyone up for a buy now, pay later scheme.

Astria

Which is what we were going to go for and then decided on the £400 scheme instead.

Sea_Shell

Isn't that just hoping/praying/keeping everything crossed that the prices DO actually come down substantially by April 2023?    

I hope the people of the IOM are putting a little bit aside towards this "debt" that will be accruing on their behalf.

Alnat1

I guess they'll pay it back with interest too and no choice in the matter.

The_Green_Hornet

charliesf said:

Well the Man Government have stepped up over there and frozen prices until March 2023.

Wish our government would step up.

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

Alternatively each individual has had the option to take out a fixed tariff to effectively freeze their own prices far beyond March 2023 but very few have done so.

Alnat1

Do people really want to be paying for the energy they use this winter for the next 5 years, with added interest? If prices haven't fallen by winter '23, you would have to pay higher next year, plus what was owed from the "discount" this winter!

sienew

wittynamegoeshere said:

What if, for example, the price was to actually drop next year or beyond and the electricity market was to actually become competitive (good imagination required, I know) and you want to switch supplier.

Would this massive debt with your current supplier mean they can stop you leaving and not bother competing on price?

If so then I can see exactly why the industry is loudly suggesting these kinds of schemes.

It also pretty much guarantees that the suppliers will still get paid the full market price with almost half guaranteed by the government. Suppliers are afraid of customers racking up bad debt they can't pay. This scheme has massive advantages for suppliers while having limited value (considering it will be repayed+interest) for the average customer.