Energy price cap freeze on a fixed tariff

CSH1

Won't people surely just pay the exit fees if their fixed rate was to mean paying over the odds all winter and everyone was getting the £400 so I can't see how that affects people on fixed rate more.  I am on a fixed rate and wouldn't be very happy if those on the cap got the £400 and those on fixed rates didn't as mentioned on several threads here

Inigo_Montoya

if the government goes ahead with the 2 year freeze at current prices then I guess people on more expensive fixes will just have pay the exit fee as that will be the cheaper option for most people

Personally I currently only have fixes on the electricity with a £100 penalty exit fee - if I have to get out of these fixes then I will at least be phoning British Gas to see if they will waive the fee given the unusual & extenuating circumstances but am not expecting them to agree to this

If its only a 4 month freeze then that will be extremely annoying but its likely then that the cheaper option for me personally will be to stay on the fix

scobie

spot1034 said:

A lot of work will be going on behind the scenes in consultation with energy companies and I'm sure the issue of customers on fixes will be on that agenda. One thing which we haven't mentioned here is that if things pan out as is beginning to look likely, suppliers will be bombarded with calls from people wanting to end their fixes and go back on to the SVT - I don't think many will be able to do it automatically without speaking to someone either on the phone or via online chat. That will mean a huge amount of work for suppliers.

I emailed Eonnext re this just now.  I fixed on their v20 12 month deal a week or so ago.  I asked if it was possible to move back to Next Flex if I wanted.  The reply can through just ten minutes later that it would be no issue and no exit fees.  

I’m pretty confident all the major suppliers would be the same.  

[Deleted User]

jimexbox said:

Deleted_User said:

I've said it before, and I will repeat it again.  Taking a fix was like buying insurance against a price rise.

If you don't have a car accident in a year (i.e. prices don't go up), you don't get a refund of your insurance premium.  However, if you decide to get rid of your car and don't need the insurance (i.e. prices are no longer at risk of going up), you can cancel the policy (i.e. move onto the SVT).

I'm not sure I see the analogy with car insurance. 

We all new in April that a price rise was absolutely guaranteed in October, absolute fact. It was merely by how much.

Those who have paid above Aprils cap (not myself), knowing that after October their sacrifice would pay off, will be slightly miffed. 

We all knew in April that if nothing changed with the regulations and if the wholesale prices performed as they were predicted at that time to do, then a price rise would follow in October.  That's very different from "absolute fact".  Anyone who thought differently was mistaken.  There was already precedent for changing of the cap regulations when it moved from 6 month review to 3 month review.

Those who paid above April's cap were doing it to protect themselves against a potential October rise.

MWT

scobie said:

I emailed Eonnext re this just now.  I fixed on their v20 12 month deal a week or so ago.  I asked if it was possible to move back to Next Flex if I wanted.  The reply can through just ten minutes later that it would be no issue and no exit fees.  

I’m pretty confident all the major suppliers would be the same.  

If it was only 'a week or so' since you went on to the fix then you are still in the 14 day period when you can change your mind with no consequences, so yes, all suppliers will be the same, if you are within the 14 day cool off period...

Not quite the same as thousands of people who fixed months ago calling the day they announce whatever they are going to announce...

scobie

MWT said:

scobie said:

I emailed Eonnext re this just now.  I fixed on their v20 12 month deal a week or so ago.  I asked if it was possible to move back to Next Flex if I wanted.  The reply can through just ten minutes later that it would be no issue and no exit fees.  

I’m pretty confident all the major suppliers would be the same.  

If it was only 'a week or so' since you went on to the fix then you are still in the 14 day period when you can change your mind with no consequences, so yes, all suppliers will be the same, if you are within the 14 day cool off period...

Not quite the same as thousands of people who fixed months ago calling the day they announce whatever they are going to announce...

Ok. I was trying to keep my note short and concise but as you bring up the issue let me elaborate. 

I told them I was within 14 day period but would likely not decide until the picture is clearer, and that would take me outside the 14 day period.  

They said no issue.  The deal is no exit fees. 

The main reason I posted is because some are speculating that it might be hard to move from fixed to Variable, instead of fix to new fix.   That was the reason I emailed them.  

And it seems it is not an issue. 

PennineAcute

[Deleted User] said:

3. To say "responsible, positive action" is being penalised doesn't look good, you are suggesting that those who "sat on their laurels" or chose SVR are irresponsible?

There are a good number of reasons why someone may be on the SVT.  In June, I had a choice.  Either stay on the SVT and pay (what was looking like) very high prices come October or try and implement damage limitation.  The former I would have been struggling with, the latter was taking ownership of the situation I was finding myself in, and taking ownership of a situation is being resonsible.

As a teacher, I always encourage my students to take ownership of a situation.  Doing so enables you to make decisions which are more likely to be correct.

TheGardener

All this talk of hedging, gambling, risk, market trends, forecasts and complex spreadsheets - the language of investment and tracking. It's a basic essential of life to have gas and/or electricity. It shouldn't need market reports and trackers to work out. That sort of complexity should not be thrown at the public, the vast majority of whom don't have the skills to manage their purchase of a basic essential  (I count myself in that majority). Buying energy should be simple and straightforward - it shouldn't be about winners and losers and those who 'didn't read the small print' - and those who did taking the high ground and telling us we should all have been more aware of the markets. We've been forced into this ridiculous position by a market that even it's own CEO's say is broken. I don't know what the solution is - but what we have isn't working. 

pedrodelgado

This puts Martin Lewis in a difficult position. Yes, it looks like he's got what he asked for with the govt stepping in and freezing the price cap but also as is being highlighted here, he also very recently advised people to pay a bit more for a month or two, in order to be paying less for the other 10 months. He also panicked people I think with his rhetoric. 
I'm luck as with eon next, there are no exit fees. Many people who just did nothing for many reasons also voiced on here, will be substantially better off than those who were trying to be proactive. At the very least, the govt should be covering any exit fees and arguably any energy paid for already by consumers who were paying over the current price cap. 
Are they still giving everyone £400 too? Thats another question. 

The_Green_Hornet

It shouldn't be long now before we start seeing newspaper articles claiming it is a regressive policy where a multimillionaire will get exactly the same level of protection as everybody else.

They won't be wrong.