Chances of new PM restricting price cap rise?

Vegastare

I think that whoever will tread water till nearer the next price cap and then do something.....by then she or he will have realised 4 months is a long time @ No10 and will be thinking election coming up and I need to please at least some of the electorate.

I also love this idea of lowering vat by 5% .  Wasn't it George Osbourne who promised it going up from seventeen and half % was temporary measure....but it will be interesting to see if we get instant assistance announcements next week. Don't hold your breathe 

nicknameless

Only if they are in mortal political danger.   The fact is that is the only time this lot give a ****

MarcoM

Vegastare said:

I think that whoever will tread water till nearer the next price cap and then do something.....by then she or he will have realised 4 months is a long time @ No10 and will be thinking election coming up and I need to please at least some of the electorate.

I also love this idea of lowering vat by 5% .  Wasn't it George Osbourne who promised it going up from seventeen and half % was temporary measure....but it will be interesting to see if we get instant assistance announcements next week. Don't hold your breathe 

I think they will wait to see what the EU does. The same thing happened with Covid, as soon as the rest of Europe shut down they u turned and started thinking about lockdowns here. Remember how he jumped from herd immunity to total lockdown in the space of a week....
The same will happen with energy.

Vegastare

MarcoM said:

Vegastare said:

I think that whoever will tread water till nearer the next price cap and then do something.....by then she or he will have realised 4 months is a long time @ No10 and will be thinking election coming up and I need to please at least some of the electorate.

I also love this idea of lowering vat by 5% .  Wasn't it George Osbourne who promised it going up from seventeen and half % was temporary measure....but it will be interesting to see if we get instant assistance announcements next week. Don't hold your breathe 

I think they will wait to see what the EU does. The same thing happened with Covid, as soon as the rest of Europe shut down the u turned and started thinking about lockdowns here. Remember how he jumped from heard immunity to total lockdown in the space of a week....
The same will happen with energy.

I think you have a point here.....see Russia has closed the gas pipeline again today....more maintenance !!

ariarnia

they either will or they wont. so the probability is either 1 or 0. the cat is alive and dead. we'll know for sure in a week or so. 

Trynsave2

As an annual ditcher and switcher for 30+ years, I finally fixed 3 weeks ago, but should have fixed a couple of months ago. You, and millions of others, should have fixed months ago too but didn't. In my opinion the October cap is definitely staying put and everyone who dithered or hedged their bets like we did and lost as a consequence only has themselves to blame. Would I fix now? Probably not, but then my recent track record doesn't really qualify me to answer. The Government will end up mopping up the really troubled cases but most will have to get on with making sacrifices to their budgets and tiptoe through the winter as best they can. If you could scrape by on the higher fixed rate, but would be blown out of the water if you don't take it and even worse comes down the line, perhaps you should fix and accept the hit if the cap gets lowered. Thems the deals when you're an adult. You make choices and hopefully only get it  wrong occasionally.

Bielsa19

Thanks all for your comments, good to hear a range of views. I opted to take E.ONs v20 at 115% above the price cap a few days ago. 

BBC are now reporting the Truss administration is considering freezing the cap. Presumably this would only be for 3-6 months, but in any case that means I'll now be paying 115% more than I could be for an additional 3-6 months which changes the calculation considerably.

Will be keeping an eye on the news and my finger over the "drop back onto next flex" button (if such a thing exists) over the next few days... 

Ryan_Holden

I fixed yesterday. It'll cost me about £180 more over the winter for my gas until January when, at current rate, it will cost me much less in electricity.

Again, on £0 exit fee so able to jump ship if truss does fix at the current rate and not allow the January 52% to go through.

However, I don't think she will. And I think with NS1 now off the 52% in Jan will be higher.

jak22

It is quite possible that bills - both domestic and business which are easily forgotten - will be frozen - its a simple sounding scheme to make most people happy. They could argue that those on fixed are already frozen and so are already happy. In fact many fixes are above the April cap with the expectation the cap would rise. Everyone will end up paying for the freeze even if they dont benefit. If the £400 is taken away then many on fixes will be worse off but forgotten in the media.

sienew

Bielsa19 said:

Thanks all for your comments, good to hear a range of views. I opted to take E.ONs v20 at 115% above the price cap a few days ago. 

BBC are now reporting the Truss administration is considering freezing the cap. Presumably this would only be for 3-6 months, but in any case that means I'll now be paying 115% more than I could be for an additional 3-6 months which changes the calculation considerably.

Will be keeping an eye on the news and my finger over the "drop back onto next flex" button (if such a thing exists) over the next few days... 

If a cap was to be introduced it wouldn't last 3-6 months, it'd probably last at least 2 years in reality.

The government to end a support package like this that directly resulted in massively increased bills for people would be political suicide. In practice the subsidised energy would last until the prices fell down to roughly similar rates they are at now.