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

[Deleted User]

scobie said:

Mstty said:

Kilmorey49 said:

I get my gas from British Gas and Electricity from Ovo. My gas bill  (heating, hot water and cooking) is larger than the electricity bill. Current direct debit Gas £121 per month Electricity £90 per month (more than double of actual usage)  How will my total energy bills be limited to no more than £2500 ?

They won't be it's not a limit. A price per kWh for gas and electricity will be released soon we all home and then you can calculate how much it will cost you an your actual usage.

It is not an all you can eat for £2500 deal.

It’s just extraordinary that this simple fact seems to be beyond so many peoples’ comprehension. 

It think the way it's described doesn't help - calling it a price cap (good, exactly true) and then quoting an annual cost (unhelpful and doesn't apply to anyone directly).

Robbie101

Mstty said:

Robbie101 said:

What about heating oil?  No announcement of help yet it’s gone from 43p to over £1 a litre.  Come on Martin please ask as it effects 1.5 million people that only have kerosine to rely on. 

Yes there is it has been mentioned. Item 13.

We just have to all be patient and wait for the details.

Thanks for pointing this out. No doubt any discretionary payment for heating oil will have a high bar set so I like many others with heating oil as an only fuel will not be holding our breath. 

I can certainly see my oil tank remaining empty this winter. 

Black_Cat2

Eon next will change their tariffs automatically I think... even the fixed tariffs? 

https://blog.eonnext.com/entries/98-New-government-energy-scheme-set-to-be-announced?_ga=2.225232858.1908179438.1662655428-703138865.166166347

mrsmac59

Black_Cat2 said:

Eon next will change their tariffs automatically I think... even the fixed tariffs? 

https://blog.eonnext.com/entries/98-New-government-energy-scheme-set-to-be-announced?_ga=2.225232858.1908179438.1662655428-703138865.166166347

I wish British Gas was on the ball as much. I logged into get an update and see if anyone other tariffs available,no !!! 
I'll try and be patient 

Tilona

I still don't know what this means. I took out a fixed tariff on the 28th of August due to the October rise. This was going to triple my bills per month.

Then today was told staying variable will mean we are better off so changed it back to variable. These are the rates 

Gas old variable tariff - 

unit 6.93 standing charge 25.92

New fixed tariff - 

unit 18.74 standing charge  27.22

Elec old variable tariff - 

unit 26.05 standing charge 45.96 

New fixed tariff - 

unit 66.92 standing charge 48.26

Have we done the right thing going back on variable? I'm so confused 😔

Zaul22

Black_Cat2 said:

Eon next will change their tariffs automatically I think... even the fixed tariffs? 

https://blog.eonnext.com/entries/98-New-government-energy-scheme-set-to-be-announced?_ga=2.225232858.1908179438.1662655428-703138865.166166347

The .gov link on that page actually says that all fixes will automatically be lowered to the variable rate, so the entire discussion about whether anyone should cancel their fix is actually entirely irrelevant. That actually makes the EPG much better than the Ofgem cap. 

Chrysalis

Zaul22 said:

Black_Cat2 said:

Eon next will change their tariffs automatically I think... even the fixed tariffs? 

https://blog.eonnext.com/entries/98-New-government-energy-scheme-set-to-be-announced?_ga=2.225232858.1908179438.1662655428-703138865.166166347

The .gov link on that page actually says that all fixes will automatically be lowered to the variable rate, so the entire discussion about whether anyone should cancel their fix is actually entirely irrelevant. That actually makes the EPG much better than the Ofgem cap. 

Yeah this was touched upon yesterday by me and someone else, it makes a lot of sense.

No need to worry about switching to SVR tariff, and also saves money as fix caps are already budgeted for so the level of subsidy will be lower for fixes below the October cap.

Chrysalis

Paolas said:

Any help is good BUT the rebate should at least be means tested so big earners or rich pensioners get less or none. Price cap for everybody? If I spend 25% of my monthly wage in energy bills I feel I am being laughed at by other people who spend (even by using more) a lot smaller percentage of their monthly income on bills.Why is the UK so averse to means testing? Why do we all become the same sometimes but we are not the same?

Its that word.

Selfishness
Or another word invented by someone on twitter, Selfservatives.

We have moved away from COL payments as there was bitterness from people who didnt get the £650, they suddenly became jealous of someone who is poorer than them, which is totally bizzare but is what it is.

My concern now though is we now will treat this £2500 average cost as some kind of acceptable level of energy costs as its at a low enough level for higher earners to not be concerned, when the reality is low earners and the sick/disabled this is still very unaffordable.  The April cap was already too high and this is 25% higher.  I brought up the subject of more payments in 2023 for the poor elsewhere and a lot of people responded they wouldnt support it, they think the poor should be happy whats already been given.  Thats the problem with the UK, for the most part we are selfish people.

I just hope the likes of Martin remember this and dont consider it job done with this £2500 freeze, there is still going to be many people struggling and defaulting on their bills, they will need more payments or a social tariff at Oct 2021 levels.

--

Update, Martin posted on twitter an extract of a document which I looked at in another thread, and it seems that document states the existing COL may be an annual thing for as long as energy prices are high (but not yet confirmed), if that happens I think those combined with the £2500 are reasonable.

https://twitter.com/MartinSLewis/status/1567831094740881410?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1567831094740881410%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fforums.moneysavingexpert.com%2Fdiscussion%2F6384905%2Fenergy-price-cap-freeze-on-a-fixed-tariff%2Fp33

Point 6 says per year not this year.
Point 11 says Undecided if will continue in 2023.

mrsmac59

So when will the fixes be lowered to svr.1st October?

mrsmac59

Just an afterthought,what if your fix is less than the new svr !!