New spate of fixed offers coming?

scobie

Now that energy suppliers have their survival guaranteed for the next two years and basically know what they will pay for gas and electricity (even if the price goes up, their subsidy rises too) I wonder if we will start to see some start to try to buy market share again, particularly offering deals up to the end of 2024.  

Let’s face it, trimming a few pence off the kWh rate might not hurt them so much now that the costs they pay is effectively fixed. 

The_Green_Hornet

I doubt it. Now that the government has effectively fixed everyone's tariffs the market will be uncompetitive for the next 2 years.

superkoopauk

The_Green_Hornet said:

I doubt it. Now that the government has effectively fixed everyone's tariffs the market will be uncompetitive for the next 2 years.

Agree - I think it will be the opposite.  Suppliers will pull their fixed deals to ease the admin.

Ultrasonic

I'm expecting all fixed tariff offers to disappear. 

QrizB

Ultrasonic said:

I'm expecting all fixed tariff offers to disappear. 

I'm also in this camp.
Barring some major movements in the energy market, no-one's going to be selling for less than the £2500 cap, and no-one's going to be buying for more than it.

strawb_shortcake

Looks like Eon have pulled all their fixed tariff already. Just Eon next Flex available now

[Deleted User]

QrizB said:

Ultrasonic said:

I'm expecting all fixed tariff offers to disappear. 

I'm also in this camp.
Barring some major movements in the energy market, no-one's going to be selling for less than the £2500 cap, and no-one's going to be buying for more than it.

Not even a benefit of hedging any more as the government is taking all the risk.

daaave

Yeah. They couldn’t get away with it, OP. Unless/until either;

a) Wholesale spot/futures prices fall back below the £2.5k cap. Possible, imo, but unlikely any time soon.

Or 

b) The government completely redesigns  the way the market works - eg, separating electricity/gas prices, redesigning the electricity auction process, etc etc. Quite likely, but not for some time.

Until one or both of those things happen, it would be inconceivable for retail energy companies to enter into competitive pricing, as the cost will be being borne by the taxpayer. The press and the politicians would vaporise whoever tried that business strategy, cos they’d be doing it on the taxpayers credit card.

t0rt0ise

And my request to move suppliers that was ignored has now magically been accepted. 

scobie

All very good points.  I clearly didn’t think it through properly 😃

uksitebuilder

I'm guessing that the UK will get all the energy it needs now, no need to barter/compete on buying price, knowing they will get the money back from the government (tax payers)

I jest