Chances of new PM restricting price cap rise?

Bielsa19

Trying to decide whether to take E.ONs fix at 115% of current rate. Given current forecasts of price cap increases, this would save money overall for the next 12 months vs the variable tariff.

However, what if pressure mounts on the new PM such that the cap is restricted (or even frozen), then I'll end up paying double what I would have had to for September for no benefit when it comes to October (since i'd drop off the fix if it turned out the cap was frozen).

So my crystal ball question is what the chances are of a new PM intervening with the price cap?

10% chance? 20% chance? 

EssexHebridean

There have been several other threads on this subject - as far as I recall the verdict so far has been that a) it's unlikely b) realistically both candidates would almost certainly at least have hinted about it had they intended to take this route, and c) that any such step would need to go hand-in-hand with options for those on fixes to ensure that they can leave those fixes without penalty AND get accepted as customers elsewhere if needed.  Obviously that's all down to people's opinions, but I see little to disagree with in any of that. 

laura_louise

There are no exit fees with the EON next tarrifs. But it will cost you a lot more in the next few months up until January since the actual cap is only 80% more. Is that extra payment really worth it... who knows. I cancelled my switch to their fixes but not sure if i did the right thing, and only time will tell. 

QrizB

Low to zero, in my opinion.

Section62

Bielsa19 said:

So my crystal ball question is what the chances are of a new PM intervening with the price cap?

10% chance? 20% chance? 

It might be more informative to speculate on the chances of Putin surviving till Christmas.

aoleks

any candidate is extremely incompetent and completely uninterested in making your life easier. not much will change. best case scenario is some "grant" that the population will eventually pay back with interest in the form of taxes and national debt.

The_Green_Hornet

Personally, I don't think they will restrict the planned price cap rise because a) they already have a package of support rolling out which they will probably tweak to help the poorest and b) they won't want to be accused of performing a  u turn upon immediately taking office.

spot1034

France, which did go down the route you are suggesting (because there was an election due) are now warning that their support cannot go on forever, and are telling the public to brace themselves for higher prices. That's a good reason why the government here won't do it - because it's hideously expensive to do even for a limited period, and they will have to end it quite possibly when prices are still very high.

pochase

Plus when they have to withdraw it, it will be even nearer to the next elections.

Labour/LibDem were talking about  a freeze for 6 months. That would bring us to the really high predictions in April.

Money spend on a targeted help makes much more sense.

Just when you read the forum it seems every group seems to believe they should be targeted...

DullGreyGuy

EssexHebridean said:

 c) that any such step would need to go hand-in-hand with options for those on fixes to ensure that they can leave those fixes without penalty AND get accepted as customers elsewhere if needed. 

Why do you think that?

Government and other public sector entities have made plenty of changes over the years that have had an adverse impact on certain people that had locked into long term deals. Look at those that entered 5 year fixed interest rates on mortgages in early 2009 when BoE base rate was 5% and then in under 12 months time it was 0.5%... no get out of your mortgage rate without an early reception charge was offered to them

uksitebuilder

IMHO it was worth the gamble when I fixed in June - I'm on a no exit fee fixed tariff now.

Fixing now has the benefit of (a depending on the supplier having no exit fee, you can change your mind, (b most suppliers give a 14 day get out of contract clause.  Which hopefully the new PM will have spelt out any assistance plans before your 14 days are up