Price Cap - Get Your Crystal Ball Out and Place Your Bets :)

FreeBear

sienew said: 7. No real plan. Probably talk of being partly funded by a potential future windfall tax (as Labours proposal did, despite only a tiny% being actually funded that way) and the rest to be figured out later. Doubt there will be specific repayment plans.

We, the consumer, will be paying for it one way or another for the next 20-25 years. Either through additional taxes, or an increase in standing charges.

My prediction - SC will double, and VAT will increase to 20% on fuel (initially, 10%, but slowly creeping up like it did with VAT on everything else).

The_Hawk

1. £2,500.
2. No change to standing charges.
3. £400 pay-out stays.
4. Fixes allowed to switch to Standard Variable Tariff with no 'exit' fee.
5. VAT will stay at 5% for the time being (will be part of a further review of our energy costs).
6. Green levies will stay for the time being (will be part of a further review of our energy costs).
7. An outline plan for small/medium businesses will be announced.

wwally

Here are my slightly more radical guesses:-

1. The "headline" price cap £2500. A nationwide single unit price for gas & electricity. All the regional and rate differences will be a calculation by Ofgem to reimburse the suppliers, but it need not trouble individual domestic consumers.
2. What will happen to standing charges? Frozen to cover basic infrastructure cost
3. What will happen about the £400 pay-out? All announced measures will be honoured, but the £400 will be factored into the calculation.
4. What will happen with fixes? If new cap rate is lower, transfer will be optional. Deals better than the new cap will remain in place.
5. What happens with VAT on energy? Removed
6. What will happen to the so-called green levies? Remain
7. Any other significant announcements?

a. Price cap per litre for heating oil and bulk LPG. (Don't know how that would work as its not currently regulated and Govt prob have no data with which to regulate)
b. Price cap on all fuels applies to domestic and business tariffs. Business bulk rates on a  sliding scale based on consumption. For businesses may be at a higher rate.
c. Some incentivisation to actually save energy. Maybe first x units at a lower rate.

All of which means this is fiendishly complex and the govt has wasted 8 weeks prep time to get this sorted by Oct 1st. I would be amazed if tomorrow's announcement could be fully detailed.

QrizB

I'm in (although I suspect my bid, below, has more internal consistency than the deal that's announced)

1. £2547 (£3549 less a government-funded subsidy of 4p/kWh for gas, 18p/kWh for electricity)
2. Standing charges as per October cap announcement.
3. £400 payout retained
4. Fixes also get the unit rate subsidy.
5. VAT unchanged at 5%
6. Green levies unchanged (one of them is currently negative, see page 3 of the letter)
7. Free cheese as previously discussed (but the thread seems to have gone missing)

jak22

Although the new administration seems against windfall taxes the existing one that finances all the current help including the £400 apparently is staying. If the Ofgem cap also technically stays so the subsidy is a unit rate discount against the cap then it would be great if the same discount was applied to fixed contracts. But that seems very optimistic even if it doesn't add that much to the final cost - at the moment an announcement not making every single fixed deal redundant and exit fees being written off are what fixed might be hoping for as a minimum. 

london21

We will find out tomorrow.

Think we might have cap for 6-12 months.

ariarnia

I'm voting

2500 on the nose and for 2 winters
october level standing charge
no change to the 400 or other boris johnson 'handouts' 
i think there will be some non comital statement about how the government expect suppliers to let people move back to the cap
i think vat will be cut. maybe by 2.5% 
i think green levies will be cut in half 
i think an amount of money (£50 billion?) will be announced as a package for businesses in either tax cuts or loans but they won't get a cap
i also think she'll announce other things like approval/money for a new nuclear power station and lifting the ban on fracking

oh thinks she'll say something like macron did about needing to cut back on usage due to shortages caused by 'putin's illegal war'  

Mstty

1. £2521 as that is £1971+£150+£400 

2. They are already set in the October 2022 Ofgem Price cap announcement and will still be reviewed every 3 months and go up or down then

3. It will be paid, no political suicide in your first month at no.10

4. Fixes will be offered fee free to go to SVT as energy companies win twice they already got that energy hedged cheaper and now they have a cash pot to us to make more money from the SVT

5. Nothing happens to VAT save that for another day

6. Nothing happens to green levies save that for another day

7. Boris will be abseiling down the Shard.

Miser1964

I don't believe that every bill will be capped at £2,500, regardless of whether you live in a semi or mansion.

I expect that that they'll say the typical bill is set at £2,500. That can be done quite easily by looking at the spread of bills being issued to consumers - which will probably be a typical distribution curve. Most households are 2 adults and 1 or 2 children in a semi so will pay about the same.

They'll just put a scaling factor on bills so that the most common charge, in the middle of the curve, is £2,500.

Alnat1

1. £2371 (April cap + £400) but to be reviewed in January
2. Standing charges as per April cap.
3. £400 refund to go through as planned.
4. Fixes remain but companies encouraged not to charge fees to those who want to leave them. Most drop the fees, a couple don't.
5. VAT remains for now but will be dropped for 12 months from next April.
6. Green levies remain unchanged but hints that something might happen in April.
7. Prepayment customers cannot be charged more than those on SVT.