What happens to the Energy Price Guarantee in April?

MattMattMattUK

njm123 said:

Saga said:

Hunt's just announced that the EPG will remain in place only till April 2023. A "Treasury-led review" will take place with the "objective to design a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need. Any support for businesses will be targeted to those in most affected and the new approach will better incentivise energy efficiency."

For which read   "If we deem you poor enough you will get help, if not you can subsidise the poor through your taxes and your bills"

That is how society works, higher earners subsidise low earners.

Saga

DiseasedBunny said:

Better not get too comfortable this winter - gonna be a miserable 2023

I envisage wholesale energy prices skyrocketing as certain elements engaged in conflict use the harsh winter weather as leverage and thus unprecedented retail gas and electricity prices in 2023. Add to that poor domestic and global harvests pushing food prices through the roof. Better cancel Christmas and save up on those pennies.

Astria

Saga said:

DiseasedBunny said:

Better not get too comfortable this winter - gonna be a miserable 2023

I envisage wholesale energy prices skyrocketing as certain elements engaged in conflict use the harsh winter weather as leverage and thus unprecedented retail gas and electricity prices in 2023. Add to that poor domestic and global harvests pushing food prices through the roof. Better cancel Christmas and save up on those pennies.

Come April 2023, and the price/kWh becomes 95p, people panic, govt intervene and then it all happens all over again.

casjen

Cue Messiah M Lewis coming out with a new load of waffle....

Shedman

MattMattMattUK said:

njm123 said:

Saga said:

Hunt's just announced that the EPG will remain in place only till April 2023. A "Treasury-led review" will take place with the "objective to design a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need. Any support for businesses will be targeted to those in most affected and the new approach will better incentivise energy efficiency."

For which read   "If we deem you poor enough you will get help, if not you can subsidise the poor through your taxes and your bills"

That is how society works, higher earners subsidise low earners.

Isn't it more like those not on benefits subsidise those that are even if they themselves are not what would be regarded as high earners aka the squeezed middle....

Plasticman

By April 2023 when the current scheme ends, we'll probably only be a year or so away from a general election (assuming we don't have one before that). While a price increase in utility bills over the summer might be less painful as usage will be lower, it's likely to cause a fair bit of discontent when we reach winter 2023. Not a comfortable position for the government I imagine. 

daveyjp

We have also been constantly told the price cap was also introduced to reduce inflation (by 5 percentage points, from 10 to 5%) which would reduce Government interest payments to offset the price cap borrowing.

That's now out of the window.

xeny

daveyjp said:

We have also been constantly told the price cap was also introduced to reduce inflation (by 5 percentage points, from 10 to 5%) which would reduce Government interest payments to offset the price cap borrowing.

That's now out of the window.

It reduces it now, but by allowing more consumer spending puts an inflation bulge ~ 2 years in the future, plus pushes gilt yields up now. No good options, only less bad ones.

MattMattMattUK

Shedman said:

MattMattMattUK said:

njm123 said:

Saga said:

Hunt's just announced that the EPG will remain in place only till April 2023. A "Treasury-led review" will take place with the "objective to design a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need. Any support for businesses will be targeted to those in most affected and the new approach will better incentivise energy efficiency."

For which read   "If we deem you poor enough you will get help, if not you can subsidise the poor through your taxes and your bills"

That is how society works, higher earners subsidise low earners.

Isn't it more like those not on benefits subsidise those that are even if they themselves are not what would be regarded as high earners aka the squeezed middle....

Technically everyone with a adult net average annual earnings of £31,500 or greater subsidises those who earn less as that is the threshold to be a net contributor, though it does move from £29,000 to £36,000 depending on exactly how it is calculated. 

The_Green_Hornet

What happens to the Energy Price Guarantee in April?

It will be reviewed.

In the meantime there will be endless speculation on multiple threads running to pages and pages of comments where some guesses will end up being correct and others not so.