October 22 price cap announcement

tpeppers

The_Green_Hornet said:

pochase said:

tpeppers said:

The_Green_Hornet said:

Correct me if I'm wrong, but everyone had the opportunity to fix their prices much lower than this earlier in the year 

The question is why did the majority just sit on their hands and do nothing?

Was it because of the poor advice given out by the likes of Martin Lewis and other influencers?

Don't forget that Cornwall Insights and the like were dishing out predictions that, in hindsight, are now wildly off the mark.  

I made a spreadsheet based on these predictions and calculated that it was better for me to stay on my cheap fix (at the time) and move on to SVT than to take up a more expensive fix early. 

Unless the government does something to cap bills, my decision to not fix will have cost me several thousand pounds. But I made that decision based on the best available evidence at the time - I didn't just "sit on my hands and do nothing", and I think a lot of people will have done the same. 

What do you expect from a prediction, that is based it on the information available up to that day.

Until the end of the review period it is a moving target. Crystal balls that show you the development of tomorrows market, not to talk of the market in 2 months are in demand.

The nearer to the end of the review period they got the less market changes influenced the prediction and the better it got. And the predictions only went in one direction, upwards.

Which is really the key point in all of this.

Yes, we know that now, don't we. But we didn't know that several months ago when we were deciding whether or not to take an expensive fix. You're looking at the situation with pure hindsight now. Back then we didn't even know that Ofgem would introduce a 3 month cap rather than 6 month. 

Had the war resolved and energy prices stabilised, or the government actually taken some action on combatting energy price rises, we might be having a very different discussion. In hindsight, yes, it was wrong not to fix, but you can't say that people were complacent or buried their heads in the sand. We took a calculated risk based on the best available information at the time. 

The_Green_Hornet

tpeppers said:

The_Green_Hornet said:

pochase said:

tpeppers said:

The_Green_Hornet said:

Correct me if I'm wrong, but everyone had the opportunity to fix their prices much lower than this earlier in the year 

The question is why did the majority just sit on their hands and do nothing?

Was it because of the poor advice given out by the likes of Martin Lewis and other influencers?

Don't forget that Cornwall Insights and the like were dishing out predictions that, in hindsight, are now wildly off the mark.  

I made a spreadsheet based on these predictions and calculated that it was better for me to stay on my cheap fix (at the time) and move on to SVT than to take up a more expensive fix early. 

Unless the government does something to cap bills, my decision to not fix will have cost me several thousand pounds. But I made that decision based on the best available evidence at the time - I didn't just "sit on my hands and do nothing", and I think a lot of people will have done the same. 

What do you expect from a prediction, that is based it on the information available up to that day.

Until the end of the review period it is a moving target. Crystal balls that show you the development of tomorrows market, not to talk of the market in 2 months are in demand.

The nearer to the end of the review period they got the less market changes influenced the prediction and the better it got. And the predictions only went in one direction, upwards.

Which is really the key point in all of this.

Yes, we know that now, don't we. But we didn't know that several months ago when we were deciding whether or not to take an expensive fix. You're looking at the situation with pure hindsight now. Back then we didn't even know that Ofgem would introduce a 3 month cap rather than 6 month. 

Had the war resolved and energy prices stabilised, or the government actually taken some action on combatting energy price rises, we might be having a very different discussion. In hindsight, yes, it was wrong not to fix, but you can't say that people were complacent or buried their heads in the sand. We took a calculated risk based on the best available information at the time. 

I personally didn't use hindsight when I fixed my gas at the end of June (11p) and electricity at the end of July (38p).

The problem I had was being stuck with suppliers after the SOLR music stopped and waiting for them to offer a decent fix to go on to. Maybe other people weren't so fortunate.

wild666

The_Green_Hornet said:

Correct me if I'm wrong, but everyone had the opportunity to fix their prices much lower than this earlier in the year 

The question is why did the majority just sit on their hands and do nothing?

Was it because of the poor advice given out by the likes of Martin Lewis and other influencers?

I was going to fix on the 24/2/22 but put it off one day then the prices shot up because of Russia invading the Ukraine.  

The_Green_Hornet

wild666 said:

The_Green_Hornet said:

Correct me if I'm wrong, but everyone had the opportunity to fix their prices much lower than this earlier in the year 

The question is why did the majority just sit on their hands and do nothing?

Was it because of the poor advice given out by the likes of Martin Lewis and other influencers?

I was going to fix on the 24/2/22 but put it off one day then the prices shot up because of Russia invading the Ukraine.  

I didn't fix until June for gas and July for electricity.

[Deleted User]

I waited, more based on when the end date of the fix would be.

Missed the v17 by 3 days, but got the v18 just before they closed it.

ariarnia

just crunched the numbers for us. we had a fix until march this year that meant we were averaging about £30 a month for gas and electric over 12 months. then fixed in march before april increase and our average bill has gone to closer to £50 over the summer (with some change in usage given we've been being careful but have also had building work going on).

taken the average of our 12 months use before the renovations and ovos estimate of our next 12 months use and working out that from when our fix runs out in march we'll be paying an average of £82 a month for electric and £74 for gas (averaged over 12 months) based on the numbers in the OP... that's going from £30 to £154 a month in 13 months. a 413% increase. and that's not knowing what'll happen in january before our fix ends!

we're lucky enough to have the flexibility in our finances we'll probably be okay even if it goes a little higher until things settle down a bit and we're still very low use as a household but that's ridiculous

frosch411

Apologies if the wrong place to post my question...
With today's announced increases, trying to get a fixed tarif will be impossible for those on the price cap. But if a fix was found and one is accepted by the supplier, for e.g. 12 or 18 months, what would happen if the government would miraculously come up with a much more cost-efficicient solution (one can dream)?
I'd have to say on the fix and pay through the nose? I could leave but pay early exit fees (might still be cheaper than staying on the fix)?
Sorry that there's so much hypothetical ifs and buts... But I am wondering if biting the bullet of an above price cap fix now would be changeable if this zombie government would miraculously come up with support...

Any thoughts much appreciated.
Thanks

(I was put on Shell when PP went bust and She'll don't offer any tarifs but the price cap)

[Deleted User]

You answered it yourself there - "I could leave but pay early exit fees"

london21

There seems to be fixes for just 12 months and even the prices have already taken into account the upcoming increase in October. 

Phlik

The_Green_Hornet said:

Correct me if I'm wrong, but everyone had the opportunity to fix their prices much lower than this earlier in the year 

The question is why did the majority just sit on their hands and do nothing?

Was it because of the poor advice given out by the likes of Martin Lewis and other influencers?

No it was because my supplier went bust and I was in limbo for several months. I then fixed after i'd made the the decision to do so.
But if it makes you happy you continue to snear at others for making a different choice to you.