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

QrizB

Steve_79_P said:

SparkyGrad, what happens (to the 58/42 split) with non traditional time of use tariffs? Eg octopus go only has a 4 hour off peak window, and GEUK tide has 3 different tariffs? Any ideas?

Nobody knows, that level of detail hasn't been published yet.

suffolk.lass_2

I have just recieved a letter from Calor. My rate for LPG is going up to 67p/litre (excluding VAT) from 26 September 2022. With no cap for those of us not on mains gas we are going to have a tough time and I am cynical enough to think 'discretionary' means hoops to go through and very few will be eligible for any help. 
Liz Truss is my local MP - yet to see her looking out for her country-based constituents!

MattMattMattUK

suffolk.lass_2 said:

I have just recieved a letter from Calor. My rate for LPG is going up to 67p/litre (excluding VAT) from 26 September 2022. With no cap for those of us not on mains gas we are going to have a tough time

It has already been confirmed that there will be help for those not on standard fuels or with different ways of living.

suffolk.lass_2 said:

and I am cynical enough to think 'discretionary' means hoops to go through and very few will be eligible for any help. 

They are classed as discretionary because it would be very difficult to write guidance which covered all circumstances and billing arrangements. 

suffolk.lass_2 said:

Liz Truss is my local MP - yet to see her looking out for her country-based constituents!

I am doubtful that Liz Truss looks out for anyone other than Liz Truss, but her self interest is a driver meaning that she will want to implement a policy which at least gives her some chance of winning the next election. It was announced that those on LPG, fuel oil, biomass etc. would all receive similar help in financial terms to those on mains gas and electricity, the exact details of that help need to be worked out as the circumstances are more complicated which is why the payments are discretionary and the details have not yet been announced. 

RickMac

On your 'round-up' page entitled "Martin Lewis' round-up of the new £2,500 energy price cap – here's what's happening" you mentioned, "A new scheme for businesses and other non-household energy users will offer equivalent support for six months."

Could you point me in the direction of the scheme details, please?

xeny

RickMac said:

On your 'round-up' page entitled "Martin Lewis' round-up of the new £2,500 energy price cap – here's what's happening" you mentioned, "A new scheme for businesses and other non-household energy users will offer equivalent support for six months."

Could you point me in the direction of the scheme details, please?

I think right now those directions will involve getting into a time machine.

MattMattMattUK

RickMac said:

On your 'round-up' page entitled "Martin Lewis' round-up of the new £2,500 energy price cap – here's what's happening" you mentioned, "A new scheme for businesses and other non-household energy users will offer equivalent support for six months."

Could you point me in the direction of the scheme details, please?

Nothing has been published on the specifics yet baring the initial announcement and mention of it being at the same level as that afforded to households for six months, details are expected next week.

The_Green_Hornet

Update from the BBC --> https://www.bbc.co.uk/news/business-62878614

Energy companies will start to contact domestic customers within days about new energy tariffs - including information for those on fixed deals.

The government has said that many people on fixed deals will receive a discount equivalent to the support given to those on the price cap.

However, it does mean some who chose to fix at an expensive rate - expecting energy prices to rise sharply - will still pay more than others.

...

Domestic customers may also have chosen - before the announcement - to get ahead of price rises expected in the future by choosing a fixed tariff.

If that was more expensive than the new capped rate then the government has said these customers will receive the equivalent discount.

In precise terms, that is an automatic reduction in unit prices of 17p per kWh for electricity and 4.2p per kWh for gas - which is the equivalent of £1,000 or so for a household using a typical amount of gas and electricity.

John_Philip_Howarth

The_Green_Hornet said:

Update from the BBC --> https://www.bbc.co.uk/news/business-62878614

Energy companies will start to contact domestic customers within days about new energy tariffs - including information for those on fixed deals.

The government has said that many people on fixed deals will receive a discount equivalent to the support given to those on the price cap.

However, it does mean some who chose to fix at an expensive rate - expecting energy prices to rise sharply - will still pay more than others.

...

Domestic customers may also have chosen - before the announcement - to get ahead of price rises expected in the future by choosing a fixed tariff.

If that was more expensive than the new capped rate then the government has said these customers will receive the equivalent discount.

In precise terms, that is an automatic reduction in unit prices of 17p per kWh for electricity and 4.2p per kWh for gas - which is the equivalent of £1,000 or so for a household using a typical amount of gas and electricity.

So what happens if my fixed tariff is 38.37p/kWh for electricity which is more than the EPG and my gas tariff is 9.84p/kWh which is les than the EPG. This is on Eon online v14. The overall annual cost on my fixed tariff works out at £25 less than the EPG based on my usage. 

Deborah_72

Mishan said:

British Gas have today updated their quotes to new standard variable tariff which is over £200 less per year for me than the fix I took out in May and have waived exit fees for switching to the standard variable tariff.  I have therefore switched. Bizarrely, however, although they show the correct rates for my existing fix, all of which are higher than the new standard variable, they say the fix is over £500 cheaper.  So look at the detail not the headline before deciding what to do.

I too was given a quote where the standard rate was around £500 less than the fix I agreed in June but when I looked back at the quote I was given back then, based on exactly same usage, I realised the new quote was about £600 more expensive -  the numbers of the new quote for my existing fix just don't add up. Someone told me it could be to do with the fact that the new quote is based on a year and my fix ends in June but I find it still very misleading  - you can work it out yourself...

Chrysalis

Deborah_72 said:

Mishan said:

British Gas have today updated their quotes to new standard variable tariff which is over £200 less per year for me than the fix I took out in May and have waived exit fees for switching to the standard variable tariff.  I have therefore switched. Bizarrely, however, although they show the correct rates for my existing fix, all of which are higher than the new standard variable, they say the fix is over £500 cheaper.  So look at the detail not the headline before deciding what to do.

I too was given a quote where the standard rate was around £500 less than the fix I agreed in June but when I looked back at the quote I was given back then, based on exactly same usage, I realised the new quote was about £600 more expensive -  the numbers of the new quote for my existing fix just don't add up. Someone told me it could be to do with the fact that the new quote is based on a year and my fix ends in June but I find it still very misleading  - you can work it out yourself...

Ignore the estimated cost, you just want to compare the unit prices and standing charge to what you have now to determine the value.