Energy price cap freeze on a fixed tariff

sienew

deano2099 said:

I guess for me the fundamental question is that, if you were on a fix, and so were going to be getting significantly cheaper energy over the next six months than half the population, did you feel that was fair?
If so, how can it be not be fair if the positions are reversed and now you're paying more than the other group?
It seems people were fine with there being significant differences in what people were paying, as long as they were in the group paying less.

I don't think the argument that "I couldn't have possibly foreseen the government doing this" is valid as there are people on here who absolutely did predict that. Not me, but people have called it. 

Pretty much anyone could get a fix and the goalposts weren't moved by govt intervention so yes, it's fair.

And it was hard to anyone to really predict this, it wasn't long ago that this proposal was first put forward and when it was both candidates specifically rejected it.

I'm saying this as someone who has a fix starting October 1st 2022 that is roughly at the October price cap that has no exit fees. I will be better off with this intervention but I don't really like this proposal  as it's essentially a massive buy now, pay later scheme.

littleteapot

GasPants said:

Reading suggestions that the cap will be frozen at £2500 (2900kWh elect & 12000 kWh gas) representing a 30% increase. The £400 `grant` will then reduce the cost to just 10% above the current level.

I've been watching with interest as the fiasco continues to unfold. I haven't checked, but I'm guessing that national debt will be close to or equal to GDP by the time this game comes to an end. Doesn't it tend to end badly when debt is this high?

As for prices, we are electricity only on EDF's April 2024v2 fix with rates as follows: 20p night, 41p day, 38p SC. EDF's current SVR rates are 16p, 35p and 38p respectively. Based on our consumption I calculated this to be approximately 23% higher than the April 2022 SVR.

If the unit rates for the 'double-capped October 2022 SVR' turn out to be not much less than this then I guess I'll probably stay on the fixed rate in case the government makes another U-turn before this fix expires in April 2024. U-turns seem to be the only thing modern governments do consistently....

Inigo_Montoya

Spies said:

Can anyone have a guess at the unit rates for a £2500 cap? 

I also asked slightly earlier on the thread - 2500 is about 27% above the current 1971 cap so, for example,  if you add 27% to 28p then that makes approx. 36p for electric

My current electric fix is at 39p so I would need to move back to the SVR with BG as there is no penalty charge as long as I dont leave BG

nekr0mantik

jimexbox said:

nekr0mantik said:

Ex_welsh_borrower said:

Looks like the freeze will be at an average spend of £2,500 a year according to the update at 15:47 here Liz Truss is new UK prime minister after meeting Queen - BBC News

As predicted not good enough.
If they lowering October cap to 2500 but it's not a freeze it means January price cap change will still apply so what they gonna do then?
Labor plan was much better.
The 18 month freeze sounded too good to be true lol

The telegraph are reporting a price freeze of £2500 lasting two winters, so into 2024.

With the discount this winter of at least £400. Is that good enough for you? 

The bbc article mentions different it says it's not price freeze. So who knows which is correct 

Chrysalis

xzibit said:

British Gas customers (and Eon I believe) need not worry. If they freeze the cap, just revert back to the SVT without penalty. 

Granted you would have paid slightly more since you fixed, but that’s all part of the gamble. And it would be far better to pay slightly more for 1 or 2 months and the cap be frozen than have to pay more for the next 2 years. 

Octopus as well, no exit fee.

Chrysalis

tpeppers said:

The guardian now reporting it will likely be frozen at £2500. The news is constantly changing. Let's not rush to conclusions before the official announcement is made. 

Seems they leaking to test public opinion, but I like the £2500 idea with keeping the £400, seems someone is thinking about people who fixed and low users as well.  Or it might just be to reduce the announced costs of the extra measures, as the cost for the £400 is under Sunak and Boris.

The_Green_Hornet

littleteapot said:

GasPants said:

Reading suggestions that the cap will be frozen at £2500 (2900kWh elect & 12000 kWh gas) representing a 30% increase. The £400 `grant` will then reduce the cost to just 10% above the current level.

I've been watching with interest as the fiasco continues to unfold. I haven't checked, but I'm guessing that national debt will be close to or equal to GDP by the time this game comes to an end. Doesn't it tend to end badly when debt is this high?

As for prices, we are electricity only on EDF's April 2024v2 fix with rates as follows: 20p night, 41p day, 38p SC. EDF's current SVR rates are 16p, 35p and 38p respectively. Based on our consumption I calculated this to be approximately 23% higher than the April 2022 SVR.

If the unit rates for the 'double-capped October 2022 SVR' turn out to be not much less than this then I guess I'll probably stay on the fixed rate in case the government makes another U-turn before this fix expires in April 2024. U-turns seem to be the only thing modern governments do consistently....

Japan has a Debt-to-GDP ratio of approximately 240%. They seem to be doing ok.

Chrysalis

Spies said:

Can anyone have a guess at the unit rates for a £2500 cap? 

Agile 2018 (35p unit 21p SC) will be a little below it I think  assuming the cap is proportionate on gas and electric.

I would have to get a calculator out to work out if gas tracker v3 would be above or below.

It takes it down from about 80% increase to about 27%

So electric unit rate 33-34p
Gas about 9p

deano2099

sienew said:

deano2099 said:

I guess for me the fundamental question is that, if you were on a fix, and so were going to be getting significantly cheaper energy over the next six months than half the population, did you feel that was fair?
If so, how can it be not be fair if the positions are reversed and now you're paying more than the other group?
It seems people were fine with there being significant differences in what people were paying, as long as they were in the group paying less.

I don't think the argument that "I couldn't have possibly foreseen the government doing this" is valid as there are people on here who absolutely did predict that. Not me, but people have called it. 

Pretty much anyone could get a fix and the goalposts weren't moved by govt intervention so yes, it's fair.

And it was hard to anyone to really predict this, it wasn't long ago that this proposal was first put forward and when it was both candidates specifically rejected it.

I'm saying this as someone who has a fix starting October 1st 2022 that is roughly at the October price cap that has no exit fees. I will be better off with this intervention but I don't really like this proposal  as it's essentially a massive buy now, pay later scheme.

Anyone could get a fix (well not me, I bought a house six weeks ago but that's not relevant), but not everyone could get a fix. The energy companies couldn't have hedged enough to offer everyone a fix. If everyone was on a fix, they'd all be bankrupt (and then I guess, no-one would be on a fix, so that'd even out!).
So there were always going to be winners and losers. 
And I've a list of things as long as my arm that the government "ruled out" in the past 5 years that then happened. It's a running joke that if the government say something definitely won't happen, you should assume it will!

barker77

Do octopus and others have to offer svr? Or can they refuse if on a fixed tariff etc?