Energy price cap freeze on a fixed tariff

michaels

deano2099 said:

Deleted_User said:

Somehow it's become a bad thing if anyone has ever paid a penny more than someone else, and everyone wants some sort of retrospective re-imbursement if they have ever paid a penny more than they had to under any circumstance.  Add that to the repeated threads saying "how is this fair, that person gets a bigger discount than me" and it all starts to look like a bunch of children.

Not quite, it's only a bad thing if someone on a fix pays a penny more than someone else. Because as we know only the smartest and best looking people take out fixes, and should be rewarded for their vast intelligence in doing so. It's totally fine if the proles that stayed on the SVT for any reason pay more, they deserve it.

Quite correctly those smart and attractive people who fixed are being penalised by overpaying for the last x months. 

Like you I am jealous of the fact they are smarter and more attractive than me so it is only fair that they pay a bit for the privilege.

Astria

Spies said:

Still rubbish that people who had the foresight to take a fixed rate early on are out of pocket now. 

Foresight goes both ways though, I refused to leave a tariff with no exit fees thinking that the prices can't keep going up without something being done, then when my tariff ended I grabbed a no exit fee fixed tariff "just in case", which could be cheaper next year if on the off-chance something actually didn't get done.

My gamble seems to have paid off.

[Deleted User]

Right - for our factsheet lovers out there - it's been updated to include the information that we've been discussing the past few days:

"For those customers on fixed rate tariffs, a ‘floor’ unit price for gas averaging at 10.3p/kWh and for electricity averaging at 34p/kWh for direct debit customers will also come into effect on 1 October 2022. We are introducing a floor because some people will have fixed at much lower prices some time ago, meaning their annual payments will already be below the £2,500 average set by the Energy Price Guarantee.

Unit price reductions of up to 17p/kWh for electricity and 4.2p/kWh for gas will apply to fixed tariff customers to bring their rates down to, but not below, the floor unit price. Customers on fixed rate tariffs that are already below the floor unit prices will continue to enjoy those low rates, but will not receive a further discount for the duration of their fixed term.

For the small number of consumers who fixed at a high rate exceeding the October Ofgem price cap of £3,549, they will receive the full discount of 17p for electricity and 4.2p for gas. However, given the higher starting point, their fixed rate tariff will still have a unit rate that is above the EPG rates. This will ensure that a fair price is paid by everyone.

Energy suppliers will adjust fixed tariffs automatically. Customers on fixed tariffs do not need to take any action to get the benefits of this scheme. Any transfer to a different tariff is a matter for suppliers."

deano2099

Astria said:

Spies said:

Still rubbish that people who had the foresight to take a fixed rate early on are out of pocket now. 

Foresight goes both ways though, I refused to leave a tariff with no exit fees thinking that the prices can't keep going up without something being done, then when my tariff ended I grabbed a no exit fee fixed tariff "just in case", which could be cheaper next year if on the off-chance something actually didn't get done.

My gamble seems to have paid off.

I'm pretty sure this can't be true, as we've been informed multiple times by those on fixed deals that government intervention in pricing was utterly impossible for anyone to foresee. There's no way someone else could have got it right and they got it wrong. Inconceivable. 

[Deleted User]

[Deleted User] said:

Right - for our factsheet lovers out there - it's been updated to include the information that we've been discussing the past few days:

"For those customers on fixed rate tariffs, a ‘floor’ unit price for gas averaging at 10.3p/kWh and for electricity averaging at 34p/kWh for direct debit customers will also come into effect on 1 October 2022. We are introducing a floor because some people will have fixed at much lower prices some time ago, meaning their annual payments will already be below the £2,500 average set by the Energy Price Guarantee.

Unit price reductions of up to 17p/kWh for electricity and 4.2p/kWh for gas will apply to fixed tariff customers to bring their rates down to, but not below, the floor unit price. Customers on fixed rate tariffs that are already below the floor unit prices will continue to enjoy those low rates, but will not receive a further discount for the duration of their fixed term.

For the small number of consumers who fixed at a high rate exceeding the October Ofgem price cap of £3,549, they will receive the full discount of 17p for electricity and 4.2p for gas. However, given the higher starting point, their fixed rate tariff will still have a unit rate that is above the EPG rates. This will ensure that a fair price is paid by everyone.

Energy suppliers will adjust fixed tariffs automatically. Customers on fixed tariffs do not need to take any action to get the benefits of this scheme. Any transfer to a different tariff is a matter for suppliers."

Thanks for spotting that.  At last sources appears to be singing from the same songsheet.  It is now crystal clear that I need to pull my forthcoming move onto another Eon Next tariff because of the above.

[Deleted User]

Credit must go to @SJMALBA who noticed it first - but yes.

Astria

deano2099 said:

Astria said:

Spies said:

Still rubbish that people who had the foresight to take a fixed rate early on are out of pocket now. 

Foresight goes both ways though, I refused to leave a tariff with no exit fees thinking that the prices can't keep going up without something being done, then when my tariff ended I grabbed a no exit fee fixed tariff "just in case", which could be cheaper next year if on the off-chance something actually didn't get done.

My gamble seems to have paid off.

I'm pretty sure this can't be true, as we've been informed multiple times by those on fixed deals that government intervention in pricing was utterly impossible for anyone to foresee. There's no way someone else could have got it right and they got it wrong. Inconceivable. 

I don't think we would have had government intervention (apart from the £400 loan) had the price stayed at 52p/kWh, but with the predictions for next year hiking the price again in January and April to 95p/kWh, I assumed something must be done, I didn't expect it so quickly though, I thought a new measure would come out in January at the next price cap.

Considering the £2500 + £400 handout, it's now basically £2100, I never expected it to be that cheap to be honest.

mmmmikey

I've been quite enjoying watching folks take chunks out of each other and I'm hoping with the latest update that will continue. But I've run out of popcorn. Could I ask you all to hold back a bit before the next round of insults starts, as I'm just popping out to stock up before I settle down and watch in bemusement? Thanks in advance

[Deleted User]

mmmmikey said:

I've been quite enjoying watching folks take chunks out of each other and I'm hoping with the latest update that will continue. But I've run out of popcorn. Could I ask you all to hold back a bit before the next round of insults starts, as I'm just popping out to stock up before I settle down and watch in bemusement? Thanks in advance

Hoping?  You know it will.

Ultrasonic

[Deleted User] said:

Ultrasonic said:

The_Green_Hornet said:

Ultrasonic said:

The_Green_Hornet said:

Yet the BBC are saying that the government has told them it is a fixed discount and even Martin Lewis is using a BEST GUESS caveat in what he believes it all means.

The only facts we have are contained within the BEIS factsheet. If people don't believe it is correct then so be it but there are a lot of strange assumptions being made on here just to fit people's own personal views.

I hope that it all becomes clear soon but unless the government publishes the agreements they have made with the suppliers then this could run and run 

In the meantime I will wait and see.

You keep suggesting everyone else is acting as if it's certain what will happen, when we aren't.

Incorrect. All I am saying is that certain people are making some strange assumptions to disagree with the contents of the official statement from the BEIS. Nothing more.

I'd suggest that mostly people are reflecting conflicting information that has come to light after that 'factsheet' was last updated, which is a little different to people making their own assumptions.

When did a factsheet for public consumption become the sole and complete documentation of a complex commercial and legislative arrangement, or the only method by which information is allowed to be released?

Shall I wait until my personal tariff details appear on the factsheet, or is it allowable that my supplier can provide these to me?

@deano2099 sarcasm tags noted.

You would hope that the limited information on the 'factsheet' didn't turn out to be wrong though.