New Energy Price Guarantee - a fair measure for all or a slightly unfair redistribution?

printedinuk

Some reports suggest that the price guarantee will be applied as universal price reduction (per unit), up to a given ceiling (the new cap).  If this is the case, would this not unfairly disadvantage those who are currently on long-term fixed tariffs, below the new ceiling?  Those customers face the prospect of not being able to benefit from the reduction and yet they are equally liable to repay it, in their future bills?  Surely, if the future burden of the intervention is universal, so should the benefit be?

(Although Martin's post claims seems to state that the discount will be applied univerally to all tariffs, the energy companies comments (and other sources) suggest that the discount will be applied universally, up to the ceiling, in other words, the discount will never reduce a tariff below the ceiling value)

dunstonh

This is the investments & savings section.  You want the energy section (and there are threads already on this subject in there)

Ed-1

printedinuk said:

Some reports suggest that the price guarantee will be applied as universal price reduction (per unit), up to a given ceiling (the new cap).  If this is the case, would this not unfairly disadvantage those who are currently on long-term fixed tariffs, below the new ceiling?  Those customers face the prospect of not being able to benefit from the reduction and yet they are equally liable to repay it, in their future bills?  Surely, if the future burden of the intervention is universal, so should the benefit be?

(Although Martin's post claims seems to state that the discount will be applied univerally to all tariffs, the energy companies comments (and other sources) suggest that the discount will be applied universally, up to the ceiling, in other words, the discount will never reduce a tariff below the ceiling value)

It's not a discount (the £400 off is a discount/rebate). The price guarantee "...limits the price suppliers can charge customers for units...". If you're already under the limit then you don't benefit. Bills won't be increased in future to recoup the costs of the guarantee. That'll be done through the tax system.

https://www.gov.uk/government/news/government-announces-energy-price-guarantee-for-families-and-businesses-while-urgently-taking-action-to-reform-broken-energy-market

printedinuk

dunstonh said:

This is the investments & savings section.  You want the energy section (and there are threads already on this subject in there)

Apologies - my mistake, will look there.

printedinuk

dunstonh said:

This is the investments & savings section.  You want the energy section (and there are threads already on this subject in there)

Created a new post there (I did look but I couldn't find any discussing this specific point). Do you know if a moderator can delete this?  Or can I??