Energy Price Guarantee

Saga

How was the EPG formally put in place? I can't seem to find specific any legislation enabling it.

[Deleted User]

By direct commercial contracts between the government and the suppliers.

They decided that there wasn't time to write legislation between the announcement and 1 Oct given the shutdown of parliament for QEII's mourning period.

macman

It's an agreement, and one that the energy retailers were no doubt delighted to co-operate with 
What I'm not clear about is what margin the subsidy builds in for supplier profit. Is it still 1.9%, as before? Or has this not been revealed?

Saga

Deleted_User said:

By direct commercial contracts between the government and the suppliers.

They decided that there wasn't time to write legislation between the announcement and 1 Oct given the shutdown of parliament for QEII's mourning period.

Thank you.

Ultrasonic

macman said:

It's an agreement, and one that the energy retailers were no doubt delighted to co-operate with 
What I'm not clear about is what margin the subsidy builds in for supplier profit. Is it still 1.9%, as before? Or has this not been revealed?

Is the government not paying the suppliers the difference between the October Ofgem cap and the EPG? If so then any profits or losses will relate to how the October cap relates to actual wholesale costs I'd have thought, rather than any government agreement?

[Deleted User]

Ultrasonic said:

macman said:

It's an agreement, and one that the energy retailers were no doubt delighted to co-operate with 
What I'm not clear about is what margin the subsidy builds in for supplier profit. Is it still 1.9%, as before? Or has this not been revealed?

Is the government not paying the suppliers the difference between the October Ofgem cap and the EPG? If so then any profits or losses will relate to how the October cap relates to actual wholesale costs I'd have thought, rather than any government agreement?

The bits I've heard (and there's nothing really concrete there) suggest it's more like paying the difference between the actual price paid for energy by the suppliers and what would have been the wholesale component of the cap had the OFGEM cap calculations resulted in a cap of £2500.

If that makes any sense?