Chances of new PM restricting price cap rise?

jamtheman80

The Tories would guillotine the Queen in Trafalgar square if it thought it would increase their chances of staying in office, so on that basis I think it will be introduced. It has already been leaked (how policy is conducted these days) and as sienew rightly points out will be longer term than originally proposed. Those who were forced to gamble in the summer on fixed deals will end up handing over a fortune in early exit fees or huge rate hikes to the energy suppliers who likewise will be pleased for the huge subsidies. None of this of course a response to real issue of their being a lack of supply after decades of neglect and bad policy making.  

Mstty

I suspect a little bit of extra cash all round for October then something bigger for January to give them time to set it up.

Chrysalis

Truss wont do more COL payments she is very anti handouts.

So this has a moderate chance I think, and if ti happens I think it will be using the loan scheme the suppliers proposed.

jak22

These things take time to put in place so suppliers would already have been involved in discussions and have a good idea what's to be announced - hence all the news articles today about it being 'expected'

sienew

Mstty said:

I suspect a little bit of extra cash all round for October then something bigger for January to give them time to set it up.

That seems like it might be an option. They bring the £400 forward to before Christmas. Then fix the price cap at the October price so there are no additional increases (like the 50% predicted for Jan) for the next 12 months. It'd give people the instant cash, look like they are accepting the price fix proposal but cost far less than fixing at the current (April 2022) price cap.

Section62

Bielsa19 said:

BBC are now reporting the Truss administration is considering freezing the cap.

Strictly speaking, the BBC are reporting that Faisal Islam and Chris Mason (respectively their Economics editor and Political editor) think there might be some truth in the rumour they've heard that a price freeze was "one of a number of options being worked up in Whitehall".

Which is an updated version of the article with the pair's bylines which was published early this morning, the gist of which was a price freeze might be an option for whoever won.

https://www.bbc.co.uk/news/business-62791113

sienew

jak22 said:

These things take time to put in place so suppliers would already have been involved in discussions and have a good idea what's to be announced - hence all the news articles today about it being 'expected'

It is said that civil servants have put together a large range of options for the new PM to go through. It's likely they have discussed many options with energy companies but not fixed on one option.

The energy companies briefing this proposal to the media (as they seem to be) seems like they are trying to force the new PM to accept this specific proposal as it benefits them most (it guarantees their income vs customers racking up energy debt they can't repay).

jak22

But the story headline is still "New Prime Minister Liz Truss expected to freeze energy bills"

Section62

jak22 said:

But the story headline is still "New Prime Minister Liz Truss expected to freeze energy bills"

That doesn't make it true.

oldagetraveller1

Section62 said:

jak22 said:

But the story headline is still "New Prime Minister Liz Truss expected to freeze energy bills"

That doesn't make it true.

Particularly when it comes from the BBC!