October 22 price cap announcement

wrf12345

The govn should ban energy standing charges, reduce council tax by £1000 for bands A-D and get rid of the tv licence rather than throw further money at the energy companies who have twenty years of ripping people off against six months of losing money. They could also have a capped rate at half the current rates for the first £20 of gas and electric monthly useage.

CaptainWales

Anybody know which green renewable tariffs are exempt from this rise? Cant find anything on ofgem website.

TheBanker

wrf12345 said:

The govn should ban energy standing charges, reduce council tax by £1000 for bands A-D and get rid of the tv licence rather than throw further money at the energy companies who have twenty years of ripping people off against six months of losing money. They could also have a capped rate at half the current rates for the first £20 of gas and electric useage.

If they ban standing charges, then who would cover the costs of maintaining the network? I don't agree with everything that's included in the SC, but without SCs unit prices would have to rise even further, or taxes would have to rise to allow the government to fund the costs of electricity distribution. And if council tax is reduced by £1000 who will make up the shortfall so the councils can still maintain local roads, provide social services, empty our bins, and all the other things our council tax pays for?

It is easy to say the government should do various things, but much harder when you scratch below the surface. Everything comes at a cost, which has to be funded through taxation or through borrowing, which has to be paid back through our childrens and grandchildrens taxation. 

jimexbox

Cornwall Insight are now predicting the January cap at £5,386.

ian1246

wrf12345 said:

The govn should ban energy standing charges, reduce council tax by £1000 for bands A-D and get rid of the tv licence rather than throw further money at the energy companies who have twenty years of ripping people off against six months of losing money. They could also have a capped rate at half the current rates for the first £20 of gas and electric useage.

No, they shouldn't. Anything linked to council tax doesn't make sense. There are working aged families in larger properties, due to size of families, in council tax band E and above, whose energy costs will be ruinous due to living pay check to pay check, who's wealth accumulation is relatively small (still paying off the mortgage/accumulating equity).

Meanwhile there will be many wealthy pensioners who will have downsized to smaller pproperties in lower tax bands, with 100s of £1000's of assets.

If your objective is to help against energy poverty, it can't be based on council banding which was quickly rushed out 30 or 40 years ago and has not been assessed since.

An example - we brought our house for £310,000 in 2021. Council Tax band E. Our houses seller brought it for £310,000 in 2007.... again, Council Tax band E.  The massive drop in real term value is due to the sheer lack of maintainence done to the property since it was brought in 2007. If Council tax is meant to be a accurate reflection of value, the banding should have changed to reflect the decreased value (just like banding should change to reflect increased values I.e. extensions). 

GingerTim

jimexbox said:

Cornwall Insight are now predicting the January cap at £5,386.

And £6,600 in April

QrizB

CaptainWales said:

Anybody know which green renewable tariffs are exempt from this rise? Cant find anything on ofgem website.

The three cap-exempt suppliers are Good Energy, Green Energy UK and Ecotricity.

t0rt0ise

A proper list showing the various regions here. https://www.ofgem.gov.uk/sites/default/files/2022-08/Default%20tariff%20cap%20level%20-%201%20October%202022%20-%2031%20December%202022.pdf

pochase

QrizB said:

CaptainWales said:

Anybody know which green renewable tariffs are exempt from this rise? Cant find anything on ofgem website.

The three cap-exempt suppliers are Good Energy, Green Energy UK and Ecotricity.

And they are not exempt from the rise. They are exempt from the limits of the cap.

That means they bill more than other suppliers.

wrf12345

"If they ban standing charges, then who would cover the costs of maintaining the network? "
It will come out of the unit charge, which may or may not need to increase, depending on how you treat the energy companies, reducing their profit from 3 percent to 0.3 percent would probably pay for it - they keep telling us it is an emergency situation.
Reducing council tax always gives people the option to change properties to get the rebate and would possibly encourage older people into smaller houses. Councils are laughably inefficient and would have to absorb the lack of income. It is not quite as bad as it sounds as most of their money still comes from central govn.