I am on a fixed tariff, what does Martin mean...

scobie

I thought it pretty irresponsible for Martin to tweet about ‘I’m hearing’ things. Especially something so contentious. People rely on him for information, not halfhearted gossip. 

It seems extremely unlikely those on fixed deals UNDER the new cap will get extra discounts.  That would be carnage. 

Andrea15

On reflection, there wouldn't be any reason to get a reduction if, say, VAT was scrapped. It would be the same as being on a fixed mortgage when interest rate collapsed. You either get out of the deal or suck it up. After all it would work in your favour if interest rates rocketed up.
I would also say that people shouldn't get the £400 either of their estimated tariff is already below £2100 (irrespective of actual consumption), but that may be too difficult to administer. 

Ultrasonic

Andrea15 said:

On reflection, there wouldn't be any reason to get a reduction if, say, VAT was scrapped.

Actually I think VAT would have been the one exception where the reduction would have applied to fixed tariffs, just as a VAT increase would have. This actually came up in another current discussion round about here if you're interested:

https://forums.moneysavingexpert.com/discussion/comment/79470928/#Comment_79470928

Andrea15

I think this comment is more to the point:
https://forums.moneysavingexpert.com/discussion/comment/79471208/#Comment_79471208

We shall have to wait and see, but with all these cuts I may end up paying only slightly above what I paid last year.
I used to be on about £950, then I moved to about £1800 fixed. With all the cuts and freebies I would pay about £1200. Ok, I am going to take it, but it would be totally absurd.
What am I going to do with the ton of coal I have bought? I would keep it for the inevitable power cuts, I suppose...

Reading all the various comments about people above or below the new "cap", I feel the government should announce a flat rate for gas and electricity and you get capped to that separately, without looking at actual consumption. That should simplify things.

jimexbox

Ultrasonic said:

Andrea15 said:

On reflection, there wouldn't be any reason to get a reduction if, say, VAT was scrapped.

Actually I think VAT would have been the one exception where the reduction would have applied to fixed tariffs, just as a VAT increase would have. This actually came up in another current discussion round about here if you're interested:

https://forums.moneysavingexpert.com/discussion/comment/79470928/#Comment_79470928

My fixed tariff was definitely shown without vat on fixing, obviously it said vat is added. Same with my bill, energy cost is given, then vat added. 

Andrea15

Mine has VAT included., Although in my bill it is itemised separately. 

[Deleted User]

It might be shown with VAT included, but that image isn't your contract.

payless

Thinking like a politician…..
( taking electric as example). So knock 15p per unit off svt and not fixed rates….  There will be a large proportion of people who think “ I did a deal to protect myself , which was hedged so no cost to government or company , yet I will pay the extra tax in future” 

give everyone something ( option to switch, or amount off all tariffs). , and probably keep votes.. the extra cost will be a fraction of overall cost and easier to calculate subsidy to retailers.

Do wonder if they should cap the units subsided per household though 

Ultrasonic

Andrea15 said:

I think this comment is more to the point:

I was suggesting reading the discussion from the post I shared onwards  .

[Deleted User]

payless said:

Do wonder if they should cap the units subsided per household though 

Almost implausible - although given the way announcements are made at the moment I couldn't say impossible.

Compare a rich singleton who spends days in the office and therefore is quite a low user (and all their units would be subsidised) with a family where someone has a medical condition and needs to stay supervised at home all the day and therefore is a much higher user (and would have to pay expensive unsubsidised rates).