Energy price cap freeze on a fixed tariff

Chrysalis

The trackers are interesting, I can see now Europe is slowing down filling its gas storage the affect on daily rates.

Gas went below the april cap levels for a few days, and still isnt pegged at 11p today.
I now also see agile going below the 35p cap on it on weekdays for the first time since I signed up to it, seemingly also affected by cheaper gas.

sienew

deano2099 said:

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!

There were fixes available 6 weeks ago that were predicted to be better than the next 12 months costs. I know pretty well about that period as I was looking at a fix at the time, I signed up for a fix around the October rate after that but have no exit fees so is no issue.

You don't understand how hedging works, they would have been able to provide anyone who wanted a fix and it would have little effect on the market.

StevieJ

If people ditch fixes to enable the new state subsidised rates.  Will this not create a 'windfall' for the energy companies? Surely they need a system where people gain by holding onto any fixed deals as this will reduce govt subsidies.

PeteHl

People who say tough to those on fixed with high exit are forgetting that we too are getting the subsidy, just that the energy companies are keeping it. And we'll be paying it back along with those on subsidised variable rate through taxes or recoup on future bills.

jak22

Even if the £400 rebate is paid, now there won't be many on fixes better off than if they'd just stayed on variable - no reward for taking a fix and paying over April cap for several months because it was obvious the cap was rising this and next year. Martin has posted that he'll be lobbying about exit fees. But whether its repaid through tax, higher bills, or seeing the effect of Govt borrowing, those on fixed will be part of the payback just the same.

[Deleted User]

PeteHl said:

People who say tough to those on fixed with high exit are forgetting that we too are getting the subsidy, just that the energy companies are keeping it. And we'll be paying it back along with those on subsidised variable rate through taxes or recoup on future bills.

I don’t think anyone is saying “tough”, just that it was all clearly laid out in the contract that you agreed to when you fixed.

Its all very well saying “but things have changed now so I want to change the deal” - would you have the same view if prices went up and the supplier tried to make the same argument?

Nice if the government decides to help, but basically means that any fix or contract is never worth the paper it’s written on and sets the precedent that even ‘fixed’ things can just be changed on a whim.

millie

If you cancel a fixed deal within the 14 day cooling off do they charge the days on the fix at your old rate or the fixed rate.

Spies

millie said:

If you cancel a fixed deal within the 14 day cooling off do they charge the days on the fix at your old rate or the fixed rate.

In the grant scheme of things does it really matter, you'd only be out of pocket by a couple of quid if they charge at fixed rate. 

jak22

If they do announce a subsidy to keep bills at the £2500 level for typical, and with the £400 for all still in place, then if your fix is less than 25% above the current April variable rate then maybe staying with the fix is still OK. Even with high exit fees then maybe that's 28% instead. But I doubt if those kind of fixes have been available for many months now. The one factor that might make keeping the  fix more worthwhile is how long the subsidy is for - if its only for 6 months say then the fix becomes useful after all - but they seem to be talking about 18 months at least.

pickapennyup

oh my head is in a spin with all this im fixed with Eon for 2 yrs at  £210 a month for 2yrs which started in August this year

Tariffs

Electricity

Next Loyalty 24M Fixed Rate - June 2022 Issue 2

Fixed term ends 16/08/2024

41.03 p/kWh 43.39 p/day

(All rates inc. VAT)

Gas

Next Loyalty 24M Fixed Rate - June 2022 Issue 2

Fixed term ends 16/08/2024

10.52 p/kWh 27.22 p/day

(All rates inc. VAT)

i liked the fact it was for 2 yrs and at the moment pay more than the ST but should gain in October well that was befoe all this,wont know what to do if this all changes and are not as clued up as many are on here,im on benefits so keeping my bill as low as i can