Energy price cap freeze on a fixed tariff

[Deleted User]

casjen said:

The predictions  from companies so beloved by a  certain group of forums members...

This looks an awful lot like you’re having a go at people who were trying to be helpful and assist others with understanding a confusing situation.

Not only that, but you also appear to be accusing these people of having nefarious motives!

GingerTim

casjen said:

 the cluless/lazy and  spongers on the gov g

Stay classy.

scobie

I don’t think they will be able to withdraw the 400 payment; it’s too baked in politically. People expect it. The first payment is just weeks away. It would be political suicide to drop it. 

Best guess is that they will keep it and impose a price cap on or slightly below the October increase - perhaps around 3000 or so.  

sienew

scobie said:

I don’t think they will be able to withdraw the 400 payment; it’s too baked in politically. People expect it. The first payment is just weeks away. It would be political suicide to drop it. 

Best guess is that they will keep it and impose a price cap on or slightly below the October increase - perhaps around 3000 or so.  

Liz Truss did previously say she wouldn't backtrack on the previous commitments and payments would go ahead. But she also said capping the price cap wasn't on the cards either so...

I do think keeping the cap at the October price cap might be something they settle on as a good middle ground. The one time payments will help people, it'll still encourage people to cut back a little (possibly needed to prevent blackouts), gives longer term price certainty, is MUCH more affordable than capping at the April price and will be sold as a massive support package in the media.

PennineAcute

I agree that people like myself took a gamble when we fixed.  However, the reasoning of some people does not wash.

In 'normal' times, if I had fixed and then some months down the line prices fell, the current fixes would be lower than the SVT - so I could just move to another cheaper tariff with my supplier BG.

If the proposed October rises do not go ahead, due to a heavy Government subsidy, then I cannot move to a cheaper tariff, as they will still be greater than the subsidised SVT rate.

In some respects, if this does go ahead before October, I am being vicitmised for trying to be responsible.

jak22

This sort of thread is more useful for those on or contemplating a fix - those on variable are well served by the media coverage. No-one on fixed is posting against helping variable - it's just a desire to not be forgotten and not lose out on the £400 which will help to cover paying above April cap or be faced with high exit fees because the goal posts have moved. EDF doesnt seem to waive the exit fee even if you stay with them.

SarahB16

PennineAcute said:

I agree that people like myself took a gamble when we fixed.  However, the reasoning of some people does not wash.

In 'normal' times, if I had fixed and then some months down the line prices fell, the current fixes would be lower than the SVT - so I could just move to another cheaper tariff with my supplier BG.

If the proposed October rises do not go ahead, due to a heavy Government subsidy, then I cannot move to a cheaper tariff, as they will still be greater than the subsidised SVT rate.

In some respects, if this does go ahead before October, I am being vicitmised for trying to be responsible.

+1            

jak22

Media seem to like reporting things as already done and the momentum behind a freeze is looking unstoppable - if anyone is going to stand up for those on fixes they have little time left.

Given the energy companies' scheme could be seen as not following the opposition's ideas that sounds more and more like what's going to happen. Businesses will be included but those on fixes above April cap still arent being mentioned.

jimexbox

I betting on a £2500-2800 freeze, with £400 (possibly upped to £600 quid) still going ahead this winter. Plus the extra help for the most vulnerable. 

I also think part of the deal with energy providers will be to drop pre existing fees to leave a fixed deal. So you can drop onto the capped rate if it works out cheaper for nothing. 

jak22

We'd like them to drop the exit fees but it doesnt seem likely energy suppliers would push for that as they'd be losing out - it would have to come from the govt side and there's still no sign of any awareness of those on fixes above April cap. 

The freeze is more likely at current prices just for simplicity - no-one want to have to stand up and explain a scheme that makes sense on paper but not on TV and media headlines. Also the new PM could argue that the £400 was something from the previous administration and no longer relevant under a new deal that they've negotiated.