Energy Price Guarantee (announced 8 Sep): initial reaction & questions

[Deleted User]

vienna28 said:

Too few posts to quote links but i doubt that would apply to me because i fixed in June last year (all electric premises) on a 2 year fix at 22p day rate, 8p night rate, 22p standing charge, my bill was a very low £446 these past 12 months.  Even paying £68 standing charge i am going to be around £350 in credit at the end of my fix.  Plus today the government said they will still give me an additional £400 over 6 months, so after my direct debit is paid that £400 will likely be all paid in my bank account. 

So i would be surprised if they knocked an additional 30% off my already low fixed rate.

It's probably easier to tell suppliers to reduce the unit rate of all tariffs by Xp per kWh than have the argument about which tariffs are or are not included.

Mstty

vienna28 said:

To Spot1034 and Sparkygrad

Yes you both might be right.  It would make it less complicated if they reduced the unit rate for all those who want to remain on a fixed rate.

It would be funny if i ended up with a 1p economy 7 night rate.:)  If i did then obviously i'll be blasting those storage heaters on full power.

Shhhhhh someone is watching and taking notes 🤣🤣🤣

JPears

How is this unit rate cap going to be paid for/paid back in the future?

Archie_Duke

JPears said:

How is this unit rate cap going to be paid for/paid back in the future?

At present it seems like it’s going to be paid for by government borrowing. It’s anyones guess how future British governments will decide to cover that borrowing, but it sounds like the new PM is against a bigger windfall tax on energy companies, so it falls more to general taxation I suppose. Your guess is as good as mine on whether that is a position that can be held in the longer term.

wrf12345

"How is this unit rate cap going to be paid for/paid back in the future?

If Putin goes away and gas prices dive back to normal levels or even cheaper than normal levels, some of reduction in rates will not happen, instead it will go to pay for the loans. So the cost of gas might go down from 12p to 5p but to pay for the loan it might only go down to 8p as far as the consumer is concerned.  If it does not go down, ever, it becomes part of govn debt.

MattMattMattUK

JPears said:

How is this unit rate cap going to be paid for/paid back in the future?

Borrowing added to the rest of government borrowing, paid for (or likely not) from general taxation, with the debt just left as a mess for our children and grandchildren to deal with. 

Sea_Shell

🎶There are more questions than answers 🎶 

CKhalvashi

spot1034 said:

vienna28 said:

Too few posts to quote links but i doubt that would apply to me because i fixed in June last year (all electric premises) on a 2 year fix at 22p day rate, 8p night rate, 22p standing charge, my bill was a very low £446 these past 12 months.  Even paying £68 standing charge i am going to be around £350 in credit at the end of my fix.  Plus today the government said they will still give me an additional £400 over 6 months, so after my direct debit is paid that £400 will likely be all paid in my bank account. 

So i would be surprised if they knocked an additional 30% off my already low fixed rate.

You never know. There have been one or two posters here who are very low users who have said their energy will be almost free, even just from the old announcements of help earlier n the year.

£400 will likely get us 6-10 months, depending on how much we are home. I've only been into the office 1 day this week and charged my car in the office and during a Tesco shop, it's moved about 15 miles since then and has 2 days of range to get to the office easily.

We're both from mountainous areas originally and always have had the house quite cold over winter and have reduced the DD currently to about £50/month (but will adapt as necessary).

I agree though that there are more questions than answers currently and they will likely be addressed tonight or tomorrow by the government.

LaurenSalonowner2612

I am a salon owner and my energy contact started December 2021 at a fixed rate at 28pence for 5years. I have now received a email to say that this fixed rate is now going up to 55pence. Can they do this? 

Mstty

LaurenSalonowner2612 said:

I am a salon owner and my energy contact started December 2021 at a fixed rate at 28pence for 5years. I have now received a email to say that this fixed rate is now going up to 55pence. Can they do this? 

Check your contract first.