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

alibean121

I’m actually not whining for a discount personally - I’m in a good financial position and will manage fine.

However you can’t just say things like ‘higher rate caused by recent energy price rises’ like that has any meaning. Higher than what? I’m paying the highest rates I have my whole life.

superpang

alibean121 said:

However you can’t just say things like ‘higher rate caused by recent energy price rises’ like that has any meaning. Higher than what? I’m paying the highest rates I have my whole life.

It's ridiculously ambiguous for something so important isn't it. 

I've been paying 21% over the odds for the last 3 months but it seems I'll make it back over winter. I feel for anyone who won't, but that's the gamble of fixing sadly.

Steve_79_P

I can't wait to see how they are going to sort mine out! Gas and electric with different companies, on different terms which expire at different times. Gas is 8.4p so that won't change, but electric is a  fixed three-rate tine-of-use tariff with rates at 25p (49 hrs a week), 35p (99 hrs a week) and 70p (20 hrs a week) depending on the time and the day!  Good luck with that one....

Forever31

"If you’re on a fixed tariff at a higher rate caused by recent energy price rises, your unit prices will be reduced by 17p/kWh for electricity and 4.2p/kWh for gas."

I need to wait for GEUK to confirm this, but at the moment, I am interpreting this that my recent fix which commenced over a month ago:

Electricity rates: Standing charge: 48.52p per day Unit rate: 37.82p per kwh

Gas rates: Standing (daily) charge:  31.31p per day Unit rate: 11.75p per kWh

Is to change to:

Electricity rates: Standing charge: 48.52p per day Unit rate: 20.82p per kwh

Gas rates: Standing (daily) charge:  31.31p per day Unit rate: 7.55p per kWh

I hope this is right as this look like a lot more comfortable.

superpang

Forever31 said:

I hope this is right as this look like a lot more comfortable.

I wouldn't get your hopes up. I think you'll just drop to the new "variable".

If it does work like that, my bills will be back to where they were a couple of years ago. Too good to be true.

[Deleted User]

Forever31 said:

"If you’re on a fixed tariff at a higher rate caused by recent energy price rises, your unit prices will be reduced by 17p/kWh for electricity and 4.2p/kWh for gas."

I need to wait for GEUK to confirm this, but at the moment, I am interpreting this that my recent fix which commenced over a month ago:

Electricity rates: Standing charge: 48.52p per day Unit rate: 37.82p per kwh

Gas rates: Standing (daily) charge:  31.31p per day Unit rate: 11.75p per kWh

Is to change to:

Electricity rates: Standing charge: 48.52p per day Unit rate: 20.82p per kwh

Gas rates: Standing (daily) charge:  31.31p per day Unit rate: 7.55p per kWh

I hope this is right as this look like a lot more comfortable.

It could be that, but of course that would mean you’re paying less than SVT despite currently being on a fix above SVT.

Some suppliers are already talking about a ‘floor’ to prices, but others haven’t mentioned anything of the sort.

We just don’t quite know.

ppc1

Forever31 said:

"If you’re on a fixed tariff at a higher rate caused by recent energy price rises, your unit prices will be reduced by 17p/kWh for electricity and 4.2p/kWh for gas."

I need to wait for GEUK to confirm this, but at the moment, I am interpreting this that my recent fix which commenced over a month ago:

Electricity rates: Standing charge: 48.52p per day Unit rate: 37.82p per kwh

Gas rates: Standing (daily) charge:  31.31p per day Unit rate: 11.75p per kWh

Is to change to:

Electricity rates: Standing charge: 48.52p per day Unit rate: 20.82p per kwh

Gas rates: Standing (daily) charge:  31.31p per day Unit rate: 7.55p per kWh

I hope this is right as this look like a lot more comfortable.

GEUK also supply my energy. 

As GEUK does not have to comply with the UK energy price CAP, are they definitely going to reduce their tariff unit rates to reflect these government changes for its fixed rate customers? Has anyone asked this question to them yet? 

Mstty

@ppc1 why don't you ask them as a customer? It would be interesting what their position is.

Chrysalis

SnakePlissken said:

Not sure what the implications of this will be long term on our bills? ...

However, the Resolution Foundation has warned that the policy risked “delaying but locking in” windfall gains. There are concerns that the government negotiating team, led by the former head of the vaccines taskforce, Madelaine McTernan, is in a weak position as it will need to convince generators to forgo high short-term prices.

Cant post the link, but source is guardian on centrica announcement 

"British Gas owner plans to cap profits to cut energy bills"

Below market prices today for above market rate prices tomorrow (when the market drops if it ever does).

Spoonie_Turtle

ppc1 said:

Forever31 said:

"If you’re on a fixed tariff at a higher rate caused by recent energy price rises, your unit prices will be reduced by 17p/kWh for electricity and 4.2p/kWh for gas."

I need to wait for GEUK to confirm this, but at the moment, I am interpreting this that my recent fix which commenced over a month ago:

Electricity rates: Standing charge: 48.52p per day Unit rate: 37.82p per kwh

Gas rates: Standing (daily) charge:  31.31p per day Unit rate: 11.75p per kWh

Is to change to:

Electricity rates: Standing charge: 48.52p per day Unit rate: 20.82p per kwh

Gas rates: Standing (daily) charge:  31.31p per day Unit rate: 7.55p per kWh

I hope this is right as this look like a lot more comfortable.

GEUK also supply my energy. 

As GEUK does not have to comply with the UK energy price CAP, are they definitely going to reduce their tariff unit rates to reflect these government changes for its fixed rate customers? Has anyone asked this question to them yet? 

I wondered this too; on their Twitter they say they're working on it to ensure their customers are protected according to the government's plans.  So, not exactly a definitive confirmation but to me that sounds like they expect it to apply to their customers.