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

[Deleted User]

Timeblast said:

This is all very confusing but why are people jumping out of fixes so quickly?

I hear for example the electricity unit rate on 1st October will be capped around 34p
on variable. My fix currently is higher at 40p, but if fixed tariff gets the same discount as variable, around 30% (£3500 to £2500), that’s 12p making my fix 28p per unit?

Then in Jan (when the cap rises another 50% from Oct according to forecasts, but gov increases discount to keep artificial cap at £2500), while variable stays at 34p, fixed tariff in theory should get another discount, making it even cheaper?

When my fix ends in July next year I will probably go to variable. But until then it would be cheaper to stay on fixed. 

Please let me know if I have missed something above and I’m sorry if I am totally wrong and misunderstood. 

The problem is we just don't know how it's going to work.  They could just as easily write the rule to say "if you are on a fix, you get whatever discount will put you at the new cap and nothing more than that" (which actually seems more likely to me, but I have no secret knowledge).

People are trying to leave fixes because they are paying more than SVT between now and 1 Oct.  Even then, there are unconfirmed reports that some suppliers have said they would refund this 'over-payment'.

John_Philip_Howarth

Some interesting comments on this forum and some very very boring and totally uninteresting. I would love to know  why the energy suppliers are taking so long to announce the unit rates. At a critical time like this, they should have been in a position to come up with the unit rates within 24 hours. 

Robin9

Is there info about small businesses ?

Sea_Shell

Reading between the lines, it's starting to sound as if everyone will be moved onto the new "cap" wholesale, and if you've overpaid between April and October you'll get a refund.

A level playing field for everyone?

We'll all be put back in the position we would have been if we'd stayed on SVT in April (or when our fixes expired).

Just my hunch. 🤔

[Deleted User]

John_Philip_Howarth said:

Some interesting comments on this forum and some very very boring and totally uninteresting. I would love to know  why the energy suppliers are taking so long to announce the unit rates. At a critical time like this, they should have been in a position to come up with the unit rates within 24 hours. 

Probably because nobody has told them what the actual caps are going to be beyond the PM's soundbite.

boysim344

All you hear about is gas prices, i am all electric and the heating system is a electric boiler with radiators. this is very expensive to run. does anyone know if any extra help will be given or is the goverment thinking everyone has gas?

Mstty

boysim344 said:

All you hear about is gas prices, i am all electric and the heating system is a electric boiler with radiators. this is very expensive to run. does anyone know if any extra help will be given or is the goverment thinking everyone has gas?

You are correct that is the most expensive form of heating, but I fail to see how a government can seek out electric boiler users with radiators?

What would be your ideas for such a scheme?

SnakePlissken

Sea_Shell said:

Reading between the lines, it's starting to sound as if everyone will be moved onto the new "cap" wholesale, and if you've overpaid between April and October you'll get a refund.

A level playing field for everyone?

We'll all be put back in the position we would have been if we'd stayed on SVT in April (or when our fixes expired).

Just my hunch. 🤔

Not so sure if that will happen as those on fixes pre 2022 would then be paying more than if left on their fix until it ended.

Unless you mean those on fixes above the froozen/ capped rate?

alibean121

Errrr I’m on an Eon fix that’s at the April price cap for unit rates with an extra £5 a month standing charge for another 18 months. I very much would not like to be released from this.

[Deleted User]

alibean121 said:

Errrr I’m on an Eon fix that’s at the April price cap for unit rates with an extra £5 a month standing charge for another 18 months. I very much would not like to be released from this.

And hence the problem with all these people saying "it's simple, they should just do it now"