Energy price cap freeze on a fixed tariff

GingerTim

Chrysalis said:

MWT said:

Important addition...

He changed his mind twice in quick succession, making it all very confusing, so my last reply is incorrect.

So he seems to mean either one of two things.

Either, Fixes over the SVR rate will be dropped to the SVR rate via subsidy. (credit on bill maybe).
Or, they will work out the pence per unit drop on SVR and apply the same pence per unit drop on fixes, if this happens those on fixes at lower than OCT rate will be laughing.

I think it has to be the former, otherwise some people on extremely low fixes now will be getting discounts.

You must surely be right - it would insane to reduce the kwh rates for someone like me who fixed in summer 2021.

sienew

Deleted_User said:

Chrysalis said:

MWT said:

Important addition...

He changed his mind twice in quick succession, making it all very confusing, so my last reply is incorrect.

So he seems to mean either one of two things.

Either, Fixes over the SVR rate will be dropped to the SVR rate via subsidy. (credit on bill maybe).
Or, they will work out the pence per unit drop on SVR and apply the same pence per unit drop on fixes, if this happens those on fixes at lower than OCT rate will be laughing.

I think it has to be the former, otherwise some people on extremely low fixes now will be getting discounts.

The government and several suppliers have already published information saying that it is the first of those.

Martin has just confused everything with his tweeting of rumours and partial information.

EDF and Eon seem to be suggesting it might be the second though.

For example, EDF are saying "If you're on one of our fixed tariffs there is nothing you need to do right now. Customers on fixed tariffs will benefit from similar discounts subject to a floor. "

[Deleted User]

sienew said:

Deleted_User said:

Chrysalis said:

MWT said:

Important addition...

He changed his mind twice in quick succession, making it all very confusing, so my last reply is incorrect.

So he seems to mean either one of two things.

Either, Fixes over the SVR rate will be dropped to the SVR rate via subsidy. (credit on bill maybe).
Or, they will work out the pence per unit drop on SVR and apply the same pence per unit drop on fixes, if this happens those on fixes at lower than OCT rate will be laughing.

I think it has to be the former, otherwise some people on extremely low fixes now will be getting discounts.

The government and several suppliers have already published information saying that it is the first of those.

Martin has just confused everything with his tweeting of rumours and partial information.

EDF and Eon seem to be suggesting it might be the second though.

For example, EDF are saying "If you're on one of our fixed tariffs there is nothing you need to do right now. Customers on fixed tariffs will benefit from similar discounts subject to a floor. "

All depends what "similar" means and where the floor is set.  Martin is very clear that he thinks "similar" means exactly the same amount in pence and doesn't mention the floor at all.

sienew

[Deleted User] said:

sienew said:

Deleted_User said:

Chrysalis said:

MWT said:

Important addition...

He changed his mind twice in quick succession, making it all very confusing, so my last reply is incorrect.

So he seems to mean either one of two things.

Either, Fixes over the SVR rate will be dropped to the SVR rate via subsidy. (credit on bill maybe).
Or, they will work out the pence per unit drop on SVR and apply the same pence per unit drop on fixes, if this happens those on fixes at lower than OCT rate will be laughing.

I think it has to be the former, otherwise some people on extremely low fixes now will be getting discounts.

The government and several suppliers have already published information saying that it is the first of those.

Martin has just confused everything with his tweeting of rumours and partial information.

EDF and Eon seem to be suggesting it might be the second though.

For example, EDF are saying "If you're on one of our fixed tariffs there is nothing you need to do right now. Customers on fixed tariffs will benefit from similar discounts subject to a floor. "

All depends what "similar" means and where the floor is set.  Martin is very clear that he thinks "similar" means exactly the same amount in pence and doesn't mention the floor at all.

Yes, that's true. What the energy companies are saying seems to be directly in between what Martin Lewis and the government documents are saying. It wouldn't surprise me if the floor isn't even decided yet.

Chrysalis

Deleted_User said:

sienew said:

Deleted_User said:

Chrysalis said:

MWT said:

Important addition...

He changed his mind twice in quick succession, making it all very confusing, so my last reply is incorrect.

So he seems to mean either one of two things.

Either, Fixes over the SVR rate will be dropped to the SVR rate via subsidy. (credit on bill maybe).
Or, they will work out the pence per unit drop on SVR and apply the same pence per unit drop on fixes, if this happens those on fixes at lower than OCT rate will be laughing.

I think it has to be the former, otherwise some people on extremely low fixes now will be getting discounts.

The government and several suppliers have already published information saying that it is the first of those.

Martin has just confused everything with his tweeting of rumours and partial information.

EDF and Eon seem to be suggesting it might be the second though.

For example, EDF are saying "If you're on one of our fixed tariffs there is nothing you need to do right now. Customers on fixed tariffs will benefit from similar discounts subject to a floor. "

All depends what "similar" means and where the floor is set.  Martin is very clear that he thinks "similar" means exactly the same amount in pence and doesn't mention the floor at all.

I quite like the idea of my 11p gas tracker capped becoming a 10p capped gas tracker.

[Deleted User]

Martin's tweets may not be prefixed with caveats like "none of this is completely clear yet but as far as I can tell....". But to be fair that caveat in various forms has popped up from time to time and I think any reasonable person can see that. So if he has got this wrong (quite possibly because whoever he is talking to has got it wrong) I hope he doesn't get a hard time about it. IMHO everyone with a fix has a debt of gratitude to Martin for going in to bat for them however this ends up.

QrizB

[Deleted User] said:

sienew said:

For example, EDF are saying "If you're on one of our fixed tariffs there is nothing you need to do right now. Customers on fixed tariffs will benefit from similar discounts subject to a floor. "

All depends what "similar" means and where the floor is set.  Martin is very clear that he thinks "similar" means exactly the same amount in pence and doesn't mention the floor at all.

EDF also say this, which seems to contradict the "floor" bit:

[Deleted User]

QrizB said:

[Deleted User] said:

sienew said:

For example, EDF are saying "If you're on one of our fixed tariffs there is nothing you need to do right now. Customers on fixed tariffs will benefit from similar discounts subject to a floor. "

All depends what "similar" means and where the floor is set.  Martin is very clear that he thinks "similar" means exactly the same amount in pence and doesn't mention the floor at all.

EDF also say this, which seems to contradict the "floor" bit:

"a little more complicated" - give EdF a medal for understatement.

That does at least suggest that tariffs already under the cap will be left alone, which up to this point we were not certain about.

Chrysalis

QrizB said:

[Deleted User] said:

sienew said:

For example, EDF are saying "If you're on one of our fixed tariffs there is nothing you need to do right now. Customers on fixed tariffs will benefit from similar discounts subject to a floor. "

All depends what "similar" means and where the floor is set.  Martin is very clear that he thinks "similar" means exactly the same amount in pence and doesn't mention the floor at all.

EDF also say this, which seems to contradict the "floor" bit:

That indicates it would be #1.  No suggestion there of tariffs below £2500 getting a discount.

sienew

Chrysalis said:

QrizB said:

[Deleted User] said:

sienew said:

For example, EDF are saying "If you're on one of our fixed tariffs there is nothing you need to do right now. Customers on fixed tariffs will benefit from similar discounts subject to a floor. "

All depends what "similar" means and where the floor is set.  Martin is very clear that he thinks "similar" means exactly the same amount in pence and doesn't mention the floor at all.

EDF also say this, which seems to contradict the "floor" bit:

That indicates it would be #1.  No suggestion there of tariffs below £2500 getting a discount.

EDF's and Eon's help pages seem to suggest there might be a discount on fixes below £2500. There is a lot of conflicting info right now.