Energy price cap freeze on a fixed tariff

xzibit

spot1034 said:

The problem Martin doesn't quite address is that there are still nearly four weeks to go and even if it becomes clear on Thursday that those who are on fixes will be transferred to the new capped rate, it will mean continuing to overpay for the rest of this month. I won't want to do that and I suspect most others won't either, which means that huge numbers of people on fixes - well at least the ones that don't have exit fees, so E.On Next, British Gas, maybe some others - will all be calling their suppliers on Thursday afternoon and over the next couple of days wanting to get on to the SVT immediately. I hope they've got plenty of staff on! 

Yep! Exactly this. I will most likely be sat on the chat function all day waiting for my turn to transfer back to the SVT. It will be beautiful chaos. However we really will need to know the proposed unit rates before making a decision.

Ultrasonic

[Deleted User] said:

Ultrasonic said:

The point of a government intervention on energy bills is to help everyone with the high prices. There is no political or moral logic to only trying to help those who hadn't transferred to a fixed tariff.

I'm with you on that, which is why I'd be more in favour of additional help by targeted (or widespread if you wish) cash help regardless of someone's tariff.  Triple the winter fuel allowance, or remove VAT from fuel, or introduce the "Liz's magic energy fund payment", or however you want.

Deciding that fixes aren't fixed, or that contract clauses no longer exist, pretty much means that the terms of a fix or contract could never be trusted again.  Why would you ever fix if it could suddenly be changed, or sign a contract if it could just be ignored?

I think those on a fix should be given the option to switch to the SVT without being charged exit fees. Nobody should be forced to do so and the energy company costs for anybody switching should be covered in the same way as they will be for the difference between the SVT and actual costs. I see no issue with future contracts if things are done in this way?

(I don't like the idea of a price cap fix at all and would like to see much more targeted support, potentially coupled with tiered unit pricing to help discourage high use. I can well believe that there simply isn't time to sort this now though.)

[Deleted User]

Ultrasonic said:

Deleted_User said:

Ultrasonic said:

The point of a government intervention on energy bills is to help everyone with the high prices. There is no political or moral logic to only trying to help those who hadn't transferred to a fixed tariff.

I'm with you on that, which is why I'd be more in favour of additional help by targeted (or widespread if you wish) cash help regardless of someone's tariff.  Triple the winter fuel allowance, or remove VAT from fuel, or introduce the "Liz's magic energy fund payment", or however you want.

Deciding that fixes aren't fixed, or that contract clauses no longer exist, pretty much means that the terms of a fix or contract could never be trusted again.  Why would you ever fix if it could suddenly be changed, or sign a contract if it could just be ignored?

I think those on a fix should be given the option to switch to the SVT without being charged exit fees. Nobody should be forced to do so and the energy company costs for anybody switching should be covered in the same way as they will be for the difference between the SVT and actual costs. I see no issue with future contracts if things are done in this way?

(I don't like the idea of a price cap fix at all and would like to see much more targeted support, potentially coupled with tiered unit pricing to help discourage high use. I can well believe that there simply isn't time to sort this now though.)

It would be signing up to a contract that has an exit fee in it, and then this fee being arbitrarily changed during the contract duration.  If a contract clause can be disregarded in this way, what's to stop a different clause being altered next time?  Or clauses being altered in other consumer contracts?  Your insurance contract suddenly having the excess changed half-way through the year, or fires suddenly being excluded from the cover?

Just because this change would appear to be the benefit of the consumer, it would still be setting the precedent that contract clauses can be retrospectively changed even when they are already in effect.

pickapennyup

and for us fixers what about Januarys increase does that mean stay on a fix and pay inflated rates between oct/january

so many ???

Chrysalis

pickapennyup said:

and for us fixers what about Januarys increase does that mean stay on a fix and pay inflated rates between oct/january

so many ???

This is why I am asking about the length of this freeze, I am hoping the until 2024 is true.

michaels

I love the way people are being delighted to be bribed with their own money.  Any reduction will be paid for either through higher bills later or higher taxes.

Zaul22

Sorry if this has already been answered somewhere else in this massive thread, but is Truss expected to cap the unit rates just like Ofgem, or cap the total bill so for people paying £1200 ish on the 28p rate it would still be a massive increase?

[Deleted User]

michaels said:

I love the way people are being delighted to be bribed with their own money.  Any reduction will be paid for either through higher bills later or higher taxes.

Or someone else's bills and someone else's taxes.

[Deleted User]

Zaul22 said:

Sorry if this has already been answered somewhere else in this massive thread, but is Truss expected to cap the unit rates just like Ofgem, or cap the total bill so for people paying £1200 ish on the 28p rate it would still be a massive increase?

Cap the unit rates to make the 'average user' cost £2500.  To something around 11p for gas and 35p for electricity if my maths was correct.

Chrysalis

[Deleted User] said:

Zaul22 said:

Sorry if this has already been answered somewhere else in this massive thread, but is Truss expected to cap the unit rates just like Ofgem, or cap the total bill so for people paying £1200 ish on the 28p rate it would still be a massive increase?

Cap the unit rates to make the 'average user' cost £2500.  To something around 11p for gas and 35p for electricity if my maths was correct.

Its a just under 27% increase, so gas should be nearer to 9p.