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

QrizB

Miser1964 said:

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

Nobody in this thread believes that, and hardly anyone in the general public does either. I don't know why you keep pretending they do.

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.

You've shared an illustration of a normal distribution, and energy use definitely isn't one of those.

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

Congratulations, you've just invented the idea of charging per kWh. The same way energy is currently priced.

Miser1964

QrizB said:

Congratulations, you've just invented the idea of charging per kWh. The same way energy is currently priced.

You've totally missed the point, perhaps deliberately. Scaling the total bill amount using a distribution curve means the unit price per kWh is irrelevant. 

[Deleted User]

Miser1964 said:

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.

It won’t be a scaling charge, it will be the typical household usage gets capped and turned into a unit price, just the same as the cap works at the moment.

bristolleedsfan

1. The "headline" price cap for a typical dual-fuel customer  - £2524

2. What will happen to standing charges? Not payable by consumers for at least length of price freeze

3. What will happen about the £400 pay-out    - Honoured

4. What will happen with fixes   --- Up to individual companies to decide

5. What happens with VAT on energy? - Remain

6. What will happen to the so-called green levies?  --removed for at least length of freeze

7. Any other significant announcements  - prepayment customers will not pay more than DD customers for at least length of price freeze + freeze energy bills for small businesses

Firms will be forced to put billions more into boosting supply, beefing up energy security, and cash to help insulate Britain's leaky homes.

Ban on fracking scrapped

mmmmikey

There's still time to place your bets. Here's a bid for the "holder of the shiniest balls" title from Simon Jack of the BBC:

Our business editor Simon Jack has been explaining what we can expect today from Liz Truss's plan to deal with rising energy costs.

He says:

• The £3,549 price cap due to come in October is expected to be reduced to around £2,500
• A £400 payment for all households to help with energy bills will go ahead as planned from October
• There may also be a VAT cut on energy bills. Households pay 5% VAT on energy while businesses pay 20%

• These measures mean a lot of people's bills will be similar to what they have been since April at £1,971

• Plans for businesses are less clear, but we know that they are going to lower and fix costs by setting the per unit cost of energy
• This is a "big intervention" - but there's a question for how long it will last

It is difficult to calculate how much the price controls will cost because it depends on how long they will be in place for. Some estimates say this could cost as much as £150bn and the government is expected to borrow to fund the plan.

Simon says that the support measures will be largely untargeted meaning that everyone - rich and poor - will receive the same type of relief.

The government's borrowing to pay for this will add a big chunk of change to the national debt, says Simon.

Remember this thread is about what you think will happen, not whether you think that is right or wrong or what shoud happen.

p.s. in case of a tiebreak, the winner will be the person who comes up with the wittiest one-liner that includes the words "cheese" and "energy" - so start thinking and post your tiebreak answers as soon as you can. Remember to keep your entries light and fun

njm123

1. £2500 until 1st  April 2024.

2. October 2022 levels reviewed with price cap

3. Honoured - to allow cap to be dropped by £400 just prior to the election. 

4. Fixes will be honoured, anyone wishing to exit a fix will have fee covered by Govt.

5. Vat stays as is - but will be cut to 0% by a general temporary VAT cut later,

6. Nothing happens to green levies now - they'll be removed prior to the election.

7. (a) Election Date will effectively be announced by the cap length.   It'll end just after the planned election date with the Tories promising to remove Green Levies and permanently remove VAT from energy to facilitate as big a cut as possible in the cap to be delivered just after the election.
    (b) Deductions on bills if people accept Fracking "locally".
    (c) Cost will be borrowing to invest and added to national debt, to be paid for by the tax revenues from unleashing a massive expansion in the economy.   At least that's what they'll say - what they mean is let a future Government worry about which taxes to raise if the bounce back in  the economy when it comes isn't enough to get us out of the hole we're digging.

diyeco

1. £2642 until 1st April 2020
2. Electricity and Gas standing charges not paid by customers - this means unit rates higher penalising affluent / heavy users, and helping less well-off.
3. Remains as is (credited to electricity accounts this winter)
4. Kicked down the road for a few weeks allowing for, "consolation"
5. Removed until 1st April 2024
6. Removed until 1st April 2024
7. VAT removed from heating oil.  DD advantage removed.

Apologies to others whose ideas I have borrowed 

ariarnia

do we know when the announcement is actually due? is it 12:30 again or 4pm or what?

wwally

ariarnia said:

do we know when the announcement is actually due? is it 12:30 again or 4pm or what?

About 11:00

ariarnia

thanks. i was going to go off and do some work but i can hang around and have a coffee if it's in 15 mins