Energy price cap freeze on a fixed tariff

alsa1

I think there is still a lot of uncertainty so wouldn’t cancel any fix yet. 

The worst thing for those on recent fixes would be if they plan to freeze the prices for those on the cap, but then claw it back through standing charges which everyone pays for years down the line. 

jak22

None of the media ever mention fixes - they seem to think everyone is on capped variable.
Many fixes will be above April rates and would be looking forward to the £400 support which would be dropped in a freeze scheme.
Many fixes have high exit fees which the suppliers wont be in a rush to write off and cancelling depends on how long the freeze is for as bills might still jump next  year.
Everyone will end up paying for a freeze scheme regardless of whether they benefit.

GasPants

People should never have been put in a position where they had to gamble on what the price cap would be or whether the government would intervene. 

si_74

I fixed in June/July - £300 exit fee, over the current cap, but well below the October one.

I have had several months of peace of mind. It was a gamble taking it, I knew this at the time and was happy to take that gamble as it was the best decision for me at that time. I had full sight of the risk it may turn out to be a decision that would cost me.

Do I want everyone else to be paying excruciatingly high energy prices and not be able to afford to turn their gas on just so that i can be proved to have made the 'right' decision'?.....no I do not!

I have my doubts that freezing the cap will happen, it is an eye wateringly expensive option and gives support to those that really don't need it as well as those that do. However, if this is the route the government go then the detail will be interesting, is it a flat freeze of the cap or limited to numbers of kwn used? How long is the commitment for, will it cover the January and April cap announcements as well?

Once this is known I will open up my spreadsheet and do some working out. If it is better for me to pay the £300 to get out of the fix then it means not so many people are going to get into huge energy debt, or not so many people will be sitting in cold homes. This thought will be good enough for me rather than looking inwardly at my situation and complaining. A reality check of where we are and a view of the bigger picture is required by some I think.

jamtheman80

GasPants said:

People should never have been put in a position where they had to gamble on what the price cap would be or whether the government would intervene. 

Completely this. And they were put in this position despite their wishes, despite the callous sentiments of the Im alright jack brigade who act as if those who are in less fortunate circumstances than them entered into some sort of high stakes casino with their family savings. They couldn't afford the current proposed rise in the cap so went with something higher than what they were paying but less. The idea that they will now be severely penalised because of a panic driven, abrupt, vote grabbing measure is morally grotesque. If a blanket rate cap is introduced then all those on existing fixed rates should have the option to void their contracts because the circumstances they were compelled to enter them no longer exist. 

rhialwencomp

GasPants said:

People should never have been put in a position where they had to gamble on what the price cap would be or whether the government would intervene. 

This is what I'm sick of, the uncertainty. The government always in shambles and doing everything last minute. Is it too much to hope for some stability?
People have had months of stress, many of us fixed because we couldn't afford not to- others weren't able to fix, either way that's a toll on health while they faffed around on holiday and choosing between rocks and hard places.
And now some of us are facing maybe paying more, again, because we did what we could at the time when it looked like these measures wouldn't happen? I don't want anyone to have to pay October's cap, but there has to be a better way to do this.

jamtheman80

si_74 said:

I fixed in June/July - £300 exit fee, over the current cap, but well below the October one.

I have had several months of peace of mind. It was a gamble taking it, I knew this at the time and was happy to take that gamble as it was the best decision for me at that time. I had full sight of the risk it may turn out to be a decision that would cost me.

Do I want everyone else to be paying excruciatingly high energy prices and not be able to afford to turn their gas on just so that i can be proved to have made the 'right' decision'?.....no I do not!

I have my doubts that freezing the cap will happen, it is an eye wateringly expensive option and gives support to those that really don't need it as well as those that do. However, if this is the route the government go then the detail will be interesting, is it a flat freeze of the cap or limited to numbers of kwn used? How long is the commitment for, will it cover the January and April cap announcements as well?

Once this is known I will open up my spreadsheet and do some working out. If it is better for me to pay the £300 to get out of the fix then it means not so many people are going to get into huge energy debt, or not so many people will be sitting in cold homes. This thought will be good enough for me rather than looking inwardly at my situation and complaining. A reality check of where we are and a view of the bigger picture is required by some I think.

The point is you shouldn't have had to gamble with an essential commodity this way, with this amount of money and nor should anyone else in less favourable financial circumstances than yourself. If the government is prepared to (gamble?) chuck tens if not hundreds of billions of pounds sticking tape over the infrastructure cracks it helped create then that help should extend to those who felt compelled to enter these ludicrous contracts out of desperation. 

MWT

brewerdave said:

dunstonh said:

You do not buy a fixed price tariff to get the best price.  You buy it to give you the certainty of amount.  Sometimes it will end up being the best option. Sometimes it will not.

But the difference here ,is that a price cap freeze by HMG overruling OFGEM at almost the last moment, would be effectively retrospective legislation. Wouldn't expect to get the difference back from date of fix til the point of "cap freeze" but would expect exit fees to be waived. . 

Not sure how that changes anything though... would you expect the Government to also compensate the suppliers for the expensive hedging they entered into to cover the fixed tariff that you want to leave without penalty... ?

... that is why the exit fees are there...

Still not sure this is going to happen though, and the details are going to be complicated if it does happen...

scobie

I fixed on the eon v20 12 month just 8-9 days ago. Thankfully it’s a no exit fee deal. As everyone has said better to wait and see what the details are.  I believe it is scheduled to be announced Thursday. 

jamtheman80

MWT said:

brewerdave said:

dunstonh said:

You do not buy a fixed price tariff to get the best price.  You buy it to give you the certainty of amount.  Sometimes it will end up being the best option. Sometimes it will not.

But the difference here ,is that a price cap freeze by HMG overruling OFGEM at almost the last moment, would be effectively retrospective legislation. Wouldn't expect to get the difference back from date of fix til the point of "cap freeze" but would expect exit fees to be waived. . 

Not sure how that changes anything though... would you expect the Government to also compensate the suppliers for the expensive hedging they entered into to cover the fixed tariff that you want to leave without penalty... ?

... that is why the exit fees are there...

Still not sure this is going to happen though, and the details are going to be complicated if it does happen...

They will be effectively subsiding them anyway, so yes. Exit fees are justified under normal circumstances, not these ones. Illustrates why public ownership would be better short term solution, though this wont solve the underlaying issue of lack of supply to meet demand.