Energy price cap freeze on a fixed tariff

luckwudaveit

If we do get the £400 I could use that to (effectively) buy myself out of the fixed deal. It would be easier if it came as a lump sum.

c1995

I reckon they'll freeze at the October price cap and still issue the £400 over winter, cancel the January rise.

casjen

Mrs_F_2017 said:

I understand that taking any fix is a gamble - I weighed it up and took the GEUK fix.

However, into my personal calculations I planned in the £400 support so if that gets cancelled with a replacement scheme introduced, it will be disappointing for me as I’ll have to find another £400 from somewhere this winter. 

So that seems the unfair bit - not only will I be on a (potentially) higher rate fix, I’ll also loose the support that was outlined. 

Also my mid-terrace 3 bedroom house is an E band, so I didn’t get any council tax relief either! Hardly living in a mansion here! 

This is going to be true for many hundred of thousands if not millions of people. If we lose the £400 then we are getting nothing from this idea but will be also hit eventually for paying it back. The same help should be given to ALL users regardless of their current deals and I cant see this will be well received. Though on BBC an interview with a business user raised this point..

George_Am

Mrs_F_2017 said:

I understand that taking any fix is a gamble - I weighed it up and took the GEUK fix.

However, into my personal calculations I planned in the £400 support so if that gets cancelled with a replacement scheme introduced, it will be disappointing for me as I’ll have to find another £400 from somewhere this winter. 

So that seems the unfair bit - not only will I be on a (potentially) higher rate fix, I’ll also loose the support that was outlined. 

Also my mid-terrace 3 bedroom house is an E band, so I didn’t get any council tax relief either! Hardly living in a mansion here! 

I am also with GEUK since beginning of august. But there are no exit fees, check your fix it may be easier than you think. 

My only concern will be to find a supplier to accept us on SVR, but I am pretty sure that they’ll need new customers. 

Mike360

I'm with a GEUK fixed price as well.  Maybe GEUK will offer the existing price cap tariff if there is a 2 year price freeze announcement.  Otherwise they will risk losing a lot of customers jumping ship.

Also, a lot depends if the freeze is from the current price cap tariff or the freeze is from the October one.

Janie2008

The more I think about it if you're not on the variable rate why should you paying over 10/20 years for it to be frozen because you're not benefitting.

MWT

Mstty said:

I do wonder in energy companies will freeze current fixes as they have already hedged that energy at that price. Put everyone on the SVT to take advantage of the price freeze then when that period is up reinstate the fixed period left.Otherwuse they are profiteering out of whatever Government scheme is introduced.

I can hope lol

Your wish would be my hell...

Having fixed on an EV tariff with Octopus, being moved to SVT would be a huge increase in my costs...

Fortunately I don't see this happening unless it is voluntary, and even then only makes sense if the fix is above wherever the SVT ends up and of course there are many people out there still on a fix below the current SVT..

Astria

c1995 said:

I reckon they'll freeze at the October price cap and still issue the £400 over winter, cancel the January rise.

and what happens to the April rise? that is predicted to be over the January rise...

deano2099

Trynsave2 said:

I understand why others have said that no-one put a gun to the head of those of us who entered fixed contracts, but the economy and the media did place a massive ticking time bomb into one hand and a pen in the other. Would we have contemplated paying higher fixed prices if all the advice wasn't that rates were only going in one direction fast? Did we attempt to assess the worsening situation and make mitigation plans whilst others either on hearing the same news either chose to ignore the messages or decided that it was the job of UK PLC to ride in on a white horse with saddle bags full of cash to distribute between them. Why should those who attempted to take responsible, positive action be penalised whilst those who sat on their laurels are rewarded? That is this country all over. I'm not saying that those on the SVR have doomed themselves by inaction and should be left to suffer, but I am saying that it shouldn't be tough luck, you caved and you lost, to all those of us who listened to the warnings and fixed.

There's certainly some truth to that, plenty of people didn't fix because they weren't paying attention and just didn't do anything.
But plenty of people made an active choice *not* to fix, based on the information available to them. Most of the fixes were, until a couple of weeks ago, fairly marginal in terms of cost/benefits. Not taking a fix isn't necessarily "sitting on laurels" - for some it was an active choice. A choice that a few weeks ago looked like a really bad one, and now looks like a good one again.
(And conversely, some people are in the habit of accepting whatever fixed deal their energy company presents them with when the current one expires, and didn't really make an active choice to fix either. They just carried on with what they did normally too).

deano2099

Trynsave2 said:

What has changed is possible third party interference. If the new PM wades in to the rescue where are the consequences for those who chose not to fix? The 'I can't reduce my usage or pay more or plan ahead' brigade who now demand the Govt splash the cash, our tax paying cash, they don't have? How many hours/years have I watched Martin on the TV telling people to switch energy companies to save money? Do they ever listen? Nope. Were they jolted into taking action over energy cap predictions? Nope. Have many just sat back, expecting to be rescued? Yep.

Genuine question: were any of these fixes available indefinitely? My experience was of anything good not lasting that long. Could the energy companies have realistically hedged enough to offer fixes to 90% of the population had they just "stopped being lazy and taken action." Or were we always going to end up with the same proportion of people on fixes vs SVT?