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

[Deleted User]

Martin's most recent tweets suggest that any discounts will not take people below the new cap - so if you're already at that or below, no discount for you.

Spoonie_Turtle

withaspritz said:

John_Philip_Howarth said:

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. 

I’d be interested to know which fixed customers won’t get the per unit discount.

the gov website (https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022)
says:

If you’re on a fixed tariff
If you’re on a fixed tariff at a higher rate caused by recent energy price rises, your unit prices will be reduced 

I fixed on 26th feb 2022 (Eonnext 2 year v18) at just above the April price cap rate. Wondering if I won’t be classed as a recent fix though?

I doubt it.  If your rates are lower than the EPG then you'll be saving money from October.

[Deleted User]

gt94sss2 said:

Deleted_User said:

According to Treasury estimates reported in Bloomberg, UK gas producers and electricity generators are set to make excess profits totalling £170 billion over the next 2 years.

The Treasury said: "We don't recognise this analysis."

Whatever the actual figure is for these firms, most of the profit does not come from their UK operations which makes it problematic to tax.

The figure is claimed to be from unreleased Treasury analysis. And be for excess profits by UK gas producers and energy generators. The UK government is perfectly able to publish official figures and perfectly capable of imposing a windfall tax if the government wanted to. It is a political choice not to do so.

[Deleted User]

So - someone claims that there is an unreleased document that has a number on it that allegedly refers to something relevant. Good.  That solves it all then, and the problem can go away.

[Deleted User]

[Deleted User] said:

So - someone claims that there is an unreleased document that has a number on it that allegedly refers to something relevant. Good.  That solves it all then, and the problem can go away.

That someone being Bloomberg a major news network of global renowned. Not some bloke down the pub.

1505grandad

https://www.forbes.com/uk/advisor/personal-finance/2022/09/12/energy-market-updates/

Stated in the above:-

"The £2,500 figure includes the removal of green levies at around £150 per bill."

Does this mean that any fixes  -  say Feb 2022  -   below the EPG are paying the green levies?

[Deleted User]

No, that's not actually how it works.  It only counts that way on variable tariffs covered by the price cap - and even then not directly.

John_Philip_Howarth

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 will believe it when Eon finally get round to adjusting all their unit rates for Online Direct Debit versions 12 to 21

Sea_Shell

Deleted_User said:

No, that's not actually how it works.  It only counts that way on variable tariffs covered by the price cap - and even then not directly.

But if your rates remain unaltered at a price that included an element of green levies...they will, by default, still be being paid by some, when they have been removed for others.

Doesn't sound right to me.

[Deleted User]

Sea_Shell said:

Deleted_User said:

No, that's not actually how it works.  It only counts that way on variable tariffs covered by the price cap - and even then not directly.

But if your rates remain unaltered at a price that included an element of green levies...they will, by default, still be being paid by some, when they have been removed for others.

Doesn't sound right to me.

The same as that rate didn't include any of the SOLR uplift on the standing charge.  Are you suggesting that the fix should have been altered to include those?

Or is it not about fairness, just not about seeing anyone else get a benefit when you don't?