Do we trust the government to maintain the Energy Price Guarantee?

Mstty

The current wording is

A new Energy Price Guarantee

The Energy Price Guarantee will reduce the unit cost of electricity and gas so that a typical household in Great Britain pays, on average, around £2,500 a year on their energy bill, for the next 2 years, from 1 October 2022.

What it does not guarantee is the 34p kWh electricity and 10.3p kWh gas. Come January I suspect the 17p reduction on electricity and 4.2p kWh gas to be guaranteed as a reduction off the Jan 2023 Ofgem price cap rates. However these rates are expected to be higher that the October 2022 price cap rates therefore prices will go up again.

Just my expectation but hope I am wrong and they do guarantee the notional £2500

The_Green_Hornet

Ryan_Holden said:

The_Green_Hornet said:

People worry too much.

I'm glad you're in a position where an energy bill at twice what it could be isn't worth worrying about. As a single homeowner, I assure you, I'm not.

My response was to the question from the OP about whether the government will maintain the EPG for two years as promised. Personally I see no reason for them not to.

If you want to take it out of context and make it about yourself then so be it.

Astria

Ryan_Holden said:

The_Green_Hornet said:

People worry too much.

I'm glad you're in a position where an energy bill at twice what it could be isn't worth worrying about. As a single homeowner, I assure you, I'm not.

I'm in your boat as well, but I've learnt that stressing over what might happen isn't any good for your overall health and well being, so I agree with Green Hornet, worry about something when it happens and not what might happen. As someone once told me, "You could be run over by a bus tomorrow, are you going to worry about that too?".

ariarnia

Astria said:

Ryan_Holden said:

The_Green_Hornet said:

People worry too much.

I'm glad you're in a position where an energy bill at twice what it could be isn't worth worrying about. As a single homeowner, I assure you, I'm not.

I'm in your boat as well, but I've learnt that stressing over what might happen isn't any good for your overall health and well being, so I agree with Green Hornet, worry about something when it happens and not what might happen. As someone once told me, "You could be run over by a bus tomorrow, are you going to worry about that too?".

while never leaving home becuse busses are out to get you is probably unhealthy there's two solutions. you can not worry by pretending buses dont' exist or you can reduce your worry by looking both ways before stepping off the pavement. what works for you might make someone else's worry worse and vice versa

[Deleted User]

Mstty said:

The current wording is

A new Energy Price Guarantee

The Energy Price Guarantee will reduce the unit cost of electricity and gas so that a typical household in Great Britain pays, on average, around £2,500 a year on their energy bill, for the next 2 years, from 1 October 2022.

What it does not guarantee is the 34p kWh electricity and 10.3p kWh gas. Come January I suspect the 17p reduction on electricity and 4.2p kWh gas to be guaranteed as a reduction off the Jan 2023 Ofgem price cap rates. However these rates are expected to be higher that the October 2022 price cap rates therefore prices will go up again.

Just my expectation but hope I am wrong and they do guarantee the notional £2500

I struggle to read that the same way that you do.

"The EPG will reduce the unit cost so that the typical user pays around £2500 per year for two years from 1 Oct 22."

That seems more likely to guarantee the 34p/kWh unit rate than to guarantee a 17p/kWh discount.

ariarnia

[Deleted User] said:

Mstty said:

The current wording is

A new Energy Price Guarantee

The Energy Price Guarantee will reduce the unit cost of electricity and gas so that a typical household in Great Britain pays, on average, around £2,500 a year on their energy bill, for the next 2 years, from 1 October 2022.

What it does not guarantee is the 34p kWh electricity and 10.3p kWh gas. Come January I suspect the 17p reduction on electricity and 4.2p kWh gas to be guaranteed as a reduction off the Jan 2023 Ofgem price cap rates. However these rates are expected to be higher that the October 2022 price cap rates therefore prices will go up again.

Just my expectation but hope I am wrong and they do guarantee the notional £2500

I struggle to read that the same way that you do.

"The EPG will reduce the unit cost so that the typical user pays around £2500 per year for two years from 1 Oct 22."

That seems more likely to guarantee the 34p/kWh unit rate than to guarantee a 17p/kWh discount.

the only way i could see they could do that is if in december they recalculated the 'average' usage after everyone has cut back. but i don't think that's very likely. i also do't think it's likely the price will drop (though it would depend how close we were to an election maybe) to reflect global events. leaving it at the 2500 rate for 2 years after prices drop would help the government recoup some of its costs.

[Deleted User]

ariarnia said:

[Deleted User] said:

Mstty said:

The current wording is

A new Energy Price Guarantee

The Energy Price Guarantee will reduce the unit cost of electricity and gas so that a typical household in Great Britain pays, on average, around £2,500 a year on their energy bill, for the next 2 years, from 1 October 2022.

What it does not guarantee is the 34p kWh electricity and 10.3p kWh gas. Come January I suspect the 17p reduction on electricity and 4.2p kWh gas to be guaranteed as a reduction off the Jan 2023 Ofgem price cap rates. However these rates are expected to be higher that the October 2022 price cap rates therefore prices will go up again.

Just my expectation but hope I am wrong and they do guarantee the notional £2500

I struggle to read that the same way that you do.

"The EPG will reduce the unit cost so that the typical user pays around £2500 per year for two years from 1 Oct 22."

That seems more likely to guarantee the 34p/kWh unit rate than to guarantee a 17p/kWh discount.

the only way i could see they could do that is if in december they recalculated the 'average' usage after everyone has cut back. but i don't think that's very likely. i also do't think it's likely the price will drop (though it would depend how close we were to an election maybe) to reflect global events. leaving it at the 2500 rate for 2 years after prices drop would help the government recoup some of its costs.

They're due to update the "typical user" next in 2023.

Mstty

[Deleted User] said:

Mstty said:

The current wording is

A new Energy Price Guarantee

The Energy Price Guarantee will reduce the unit cost of electricity and gas so that a typical household in Great Britain pays, on average, around £2,500 a year on their energy bill, for the next 2 years, from 1 October 2022.

What it does not guarantee is the 34p kWh electricity and 10.3p kWh gas. Come January I suspect the 17p reduction on electricity and 4.2p kWh gas to be guaranteed as a reduction off the Jan 2023 Ofgem price cap rates. However these rates are expected to be higher that the October 2022 price cap rates therefore prices will go up again.

Just my expectation but hope I am wrong and they do guarantee the notional £2500

I struggle to read that the same way that you do.

"The EPG will reduce the unit cost so that the typical user pays around £2500 per year for two years from 1 Oct 22."

That seems more likely to guarantee the 34p/kWh unit rate than to guarantee a 17p/kWh discount.

Yeah I've seen all types of government change the rules mid promise lol

[Deleted User]

Mstty said:

[Deleted User] said:

Mstty said:

The current wording is

A new Energy Price Guarantee

The Energy Price Guarantee will reduce the unit cost of electricity and gas so that a typical household in Great Britain pays, on average, around £2,500 a year on their energy bill, for the next 2 years, from 1 October 2022.

What it does not guarantee is the 34p kWh electricity and 10.3p kWh gas. Come January I suspect the 17p reduction on electricity and 4.2p kWh gas to be guaranteed as a reduction off the Jan 2023 Ofgem price cap rates. However these rates are expected to be higher that the October 2022 price cap rates therefore prices will go up again.

Just my expectation but hope I am wrong and they do guarantee the notional £2500

I struggle to read that the same way that you do.

"The EPG will reduce the unit cost so that the typical user pays around £2500 per year for two years from 1 Oct 22."

That seems more likely to guarantee the 34p/kWh unit rate than to guarantee a 17p/kWh discount.

Yeah I've seen all types of government change the rules mid promise lol

Oh, I don't think either situation is very likely long term - just a relative assessment.

PennineAcute

ariarnia said:

[Deleted User] said:

Mstty said:

The current wording is

A new Energy Price Guarantee

The Energy Price Guarantee will reduce the unit cost of electricity and gas so that a typical household in Great Britain pays, on average, around £2,500 a year on their energy bill, for the next 2 years, from 1 October 2022.

What it does not guarantee is the 34p kWh electricity and 10.3p kWh gas. Come January I suspect the 17p reduction on electricity and 4.2p kWh gas to be guaranteed as a reduction off the Jan 2023 Ofgem price cap rates. However these rates are expected to be higher that the October 2022 price cap rates therefore prices will go up again.

Just my expectation but hope I am wrong and they do guarantee the notional £2500

I struggle to read that the same way that you do.

"The EPG will reduce the unit cost so that the typical user pays around £2500 per year for two years from 1 Oct 22."

That seems more likely to guarantee the 34p/kWh unit rate than to guarantee a 17p/kWh discount.

the only way i could see they could do that is if in december they recalculated the 'average' usage after everyone has cut back. but i don't think that's very likely. i also do't think it's likely the price will drop (though it would depend how close we were to an election maybe) to reflect global events. leaving it at the 2500 rate for 2 years after prices drop would help the government recoup some of its costs.

Big but, but if prices do decrease, will energy companies give tariffs cheaper than the 'guaranteed' SVT rate?