Martin Lewis: Energy price freeze rumours - what it means for you, will it work?

[Deleted User]

RobSad said:

Windfall tax the hell out of them.  The profits these companies are making are absolutely eye watering.  Even with these price cap freezes, it is the most expensive it has ever been and 'heating or eating' is not a new thing.

We need huge investment in renewals.  Not only to literally insulate us from the volatility of energy markets but the planet is burning up!

The profits that the suppliers make has been capped at 1.9%, that's part of the existing arrangement.

If they were making 'eye watering' profits, why have 20 of the companies gone bust and why is Bulb costing the taxpayer over £2billion to keep alive?

If you're going to say "these companies", you'd better be clear which ones they are, and good luck trying to put a windfall tax on Saudi Aramco and CNOOC.

scotbruce

As per the data shown below, even already on the first potential day of autumn, 1 September 2022, there was an exceptional difference - ** 24.6°C !! ** - between of the temperatures between the north of the UK and the south of the UK.

• Surely the location of someone’s home, with its related energy usage and increasing costs, must be a factor in any support offered by the authorities?
  

• Why is this not being discussed already in the media, on social media and by the current political leaders?
  

• When will this issue be raised - and more importantly dealt with - by the relevant two legislative bodies, i.e. Westminster and the devolved Holyrood parliament?
  

https://www.eldoradoweather.com/climate/world-extremes/world-temp-rainfall-extremes.php?extremes=United%2BK

World Daily High and Low 24 Hour Temperatures with Maximum World Rainfall in Fahrenheit and Inches - El Dorado Weather 24 Hour Daily High and Low World Temperatures with Maximum World Precipitation / Rainfall including Northern Hemisphere High and Low Temperatures, Southern Hemisphere, United States, Canada, Europe, & the United Kingdom High and Low Temperatures / Rainfall in Fahrenheit and Inches. www.eldoradoweather.com

Data courtesy of https://www.ogimet.com/index.phtml.en

RuthMarianna

Fletchy said:

I would like to see the help on bills given at different levels of use e.g. say x% off the first 1,000 kWh, y% off the next 1,000 kWh etc with lower reliefs given at higher usage levels. That would help those in need pay for a basic requirement with the highest relief and also give an incentive for us all to reduce energy use where we can.  

I absolutely agree with this. This was included as one of the suggestions put forward by Ovo energy, https://www.current-news.co.uk/news/ovo-energy-reveals-10-point-plan-to-tackle-the-energy-crisis, which also included the removal of the standing charge. This helps lower income groups most but gives incentive to conserve energy essential if we are ever to achieve carbon neutral. 

John_L_M

[Deleted User] said:

RobSad said:

Windfall tax the hell out of them.  The profits these companies are making are absolutely eye watering.  Even with these price cap freezes, it is the most expensive it has ever been and 'heating or eating' is not a new thing.

We need huge investment in renewals.  Not only to literally insulate us from the volatility of energy markets but the planet is burning up!

The profits that the suppliers make has been capped at 1.9%, that's part of the existing arrangement.

If they were making 'eye watering' profits, why have 20 of the companies gone bust and why is Bulb costing the taxpayer over £2billion to keep alive?

If you're going to say "these companies", you'd better be clear which ones they are, and good luck trying to put a windfall tax on Saudi Aramco and CNOOC.

100% Correct... you shot my fox SparkyGrad.... the total naivety displayed by some people on this subject is alarming...

Shugg_McGlummfer

The energy price rise calculator is flawed. There are only options for DD or Pre-payment. I pay as and when a bill arises after I read the meters and then BACS it.

John_L_M

Regarding what will happen to those on fixed rates: I put my 75 year old mother on a fixed rate deal in February fixed for 12 months. It was a gamble, rates could have come down, but between us we collectively decided that it was a risk she could not afford to run with. As we now know she made the right call... She is only paying slightly more than the current capped rate, so when rates rise in Octobers hers will not, nor in January 2023.

She is a pensioner surviving on a basic state pension and a very modest works pension. (She was a housewife most of her adult life staying at home raising four children.)

Some make draw a parallel with the the parable of the olive pickers: Those that were happy to take the job in the morning picking olives should not complain that those who were hired at mid-day or in the early evening are getting the same pay. They were happy when they were hired in the morning. Why complain if others a hired later in the day for the same pay? Some might say that "She was happy to fix her price at a higher rate than the capped rates.. that's the chance you take"

But the choice to fix was not based on "being happy to take the fix" more out of alarm about what would potentially happen if the prices went up further. It was a move made out of desperation. Besides, prices are not coming down naturally... if they were then we would just quietly accept it. After all, her fixed price deal will end next February any how. She would feel relived.

If they do fix the cap at the current rate artificially then in order to be fair to all they will have to retrospectively 'unfix' everyones fixed rate deals who have signed up to more than the current cap... and back date their bills back to when they took out the fix in the first place....

Firemountain

Well I'm full of regret for taking a switch thats hammering me but would have been saving me at the projected increases in jan/apr etc  I won't see any of that money back and potentially be hit with the exit fees from the fix don't suppose LIzzy will be stumping that up for folk .   I just hope that it works and keeps people warm and the lights on on the whole though . I can swallow what I've done albeit a bit bitterly just would like it implemeneted asap as my daily cost is nearly 7 quid a day and thats without heating on ! 

White_Goldfish

"We are with Octopus and have taken out a fixed deal on the 28th of August as we were worried about the rise of the price cap. We were on the Avro variable rate before. The fixed rate will triple our monthly payments. With the news today we now don't know what to do. We appreciate that nobody does until Thursday but can anyone tell me if a cooling off period applies when one changes tariff with the same provider?"

Octopus does not usually charge fees for exiting a tariff. Not sure why this is not showing on your online account.

trendylfj

Does anyone know how the price cap works for single users.  We do not have gas in our village so I am an electric only user (oil for heating) but anytime anyone talk about the price cap they quote what it will be for "average dual users"! Never about single users

belle_de_jour

I was on a fixed electricity-only rate which ended on 31 July.  After a lot of thought, research, number crunching and sticking wet fingers into the air I decided to go for another 2 year fixed rate from 1 August.  I felt it was, as Martin says in his blog, the best decision for me based on the information available at the time.

I’m going to have to wait and see what my supplier comes up with after tomorrow’s announcements which will all be reported on the basis of “average” dual fuel usage.  I’m particularly keen to know whether or not they will hold customers to the £150 exit fee applicable to switch tariffs internally.

My other fuel is heating oil – unregulated, no caps and with volatile pricing (and at times supply).  From a delivery in May 2021 to one in June 2022, the cost per litre I have paid has increased by 151.68%.  At June’s price my annual oil cost would already be over £2,000 before adding on any electricity, around £1,250 a year at my current fixed rate.  Freezing the dual fuel cap at £2,500 will not be a great help to me. 

Victoria Atkins MP did raise a question at today’s PMQs about homes using heating oil and whether or not any cap would be considered but I’m not holding my breath that this will be addressed.  I assume those using LPG have a similar problem although this is something I know nothing about.