Energy Price Guarantee No Longer 2 years just 6 months at current level

[Deleted User]

tghe-retford said:

There was also an assumption by mainstream media outlets that the income tax cut of 1p from 20p to 19p would merely be delayed. They were all wrong.

Do not assume that the Ofgem price cap is safe from abolition. Laws can be amended, implemented or removed to make it happen by then.

The OFGEM cap is much more likely to stay because it costs the government nothing, actually relates to the wholesale prices, and gives them someone else to blame.

tghe-retford

[Deleted User] said:

tghe-retford said:

There was also an assumption by mainstream media outlets that the income tax cut of 1p from 20p to 19p would merely be delayed. They were all wrong.

Do not assume that the Ofgem price cap is safe from abolition. Laws can be amended, implemented or removed to make it happen by then.

The OFGEM cap is much more likely to stay because it costs the government nothing, actually relates to the wholesale prices, and gives them someone else to blame.

I assume there is some cost in the work required to get the figure to be announced. The Government's mindset is that the market is a far better mechanism for influencing and changing behaviour of consumers as has happened in the business sector.

bristolleedsfan

Deleted_User said:

tghe-retford said:

There was also an assumption by mainstream media outlets that the income tax cut of 1p from 20p to 19p would merely be delayed. They were all wrong.

Do not assume that the Ofgem price cap is safe from abolition. Laws can be amended, implemented or removed to make it happen by then.

The OFGEM cap is much more likely to stay because it costs the government nothing, actually relates to the wholesale prices, and gives them someone else to blame.

https://www.telegraph.co.uk/business/2022/10/15/energy-price-cap-torn-plans-considered-whitehall/

https://www.energynewsline.co.uk/energy-live-news/uk-energy-price-cap-could-soon-be-scrapped/

blueste

At various points in the interview below (35seconds and 4minutes 25seconds are examples) Truss claimed that the average household will still pay £2500 for Energy, but that is no longer true. Since that estimate was based on the price cap being in place for a year and it will no longer will be from April 23 we actually have little idea what a typical family will pay!
https://www.bbc.co.uk/iplayer/episode/p0d7mmk8/bbc-news-special-prime-minister-apologises-for-mistakes#xtor=CS8-1000-[EditorialPromo_Box]-[NewsEditorial_Promo]-[NewsEditorial_Promo]-[PS_IPLAYER~N~p0d7mmk8~P_TrussInterview]

[Deleted User]

bristolleedsfan said:

Deleted_User said:

tghe-retford said:

There was also an assumption by mainstream media outlets that the income tax cut of 1p from 20p to 19p would merely be delayed. They were all wrong.

Do not assume that the Ofgem price cap is safe from abolition. Laws can be amended, implemented or removed to make it happen by then.

The OFGEM cap is much more likely to stay because it costs the government nothing, actually relates to the wholesale prices, and gives them someone else to blame.

https://www.telegraph.co.uk/business/2022/10/15/energy-price-cap-torn-plans-considered-whitehall/

https://www.energynewsline.co.uk/energy-live-news/uk-energy-price-cap-could-soon-be-scrapped/

Both of which articles say the cap could stop in two years when the original EPG was due to end.

 Not much relevance to this new situation.

Ryan_Holden

QrizB said:

• @Ryan_Holden claims Octopus kicked them off their fix, this is the only report like this that I've seen and I'd welcome more details regarding exactly what happened.

I wouldn't say I was kicked off. I entered into the fix 2 weeks before the EPG came to light, I asked if I would be better moving to the EPG rate and they asked me to sit tight, so I did. Then I received the email saying "To ensure you get the cheapest possible energy and don't pay more than you need to, we'll automatically move you to our Flexible Octopus tarriff on October 1st". 

When I asked if I had a choice, they said the fix deal wasn't worthwhile and so was being withdrawn. 

[Deleted User]

tghe-retford said:

Deleted_User said:

tghe-retford said:

There was also an assumption by mainstream media outlets that the income tax cut of 1p from 20p to 19p would merely be delayed. They were all wrong.

Do not assume that the Ofgem price cap is safe from abolition. Laws can be amended, implemented or removed to make it happen by then.

The OFGEM cap is much more likely to stay because it costs the government nothing, actually relates to the wholesale prices, and gives them someone else to blame.

I assume there is some cost in the work required to get the figure to be announced. The Government's mindset is that the market is a far better mechanism for influencing and changing behaviour of consumers as has happened in the business sector.

The market and OFGEM cap were working well enough together.  There was competition, there were fixes on offer of different lengths and different prices, there were novel tariffs like tracker, there was the ability for a supplier to be more efficient and enhance its profitability but there was still some level of protection against large unwarranted profits.

As far as I know, nobody has told OFGEM to stop making the cap calculations, so the cost is minimal.

bristolleedsfan

Deleted_User said:

bristolleedsfan said:

Deleted_User said:

tghe-retford said:

There was also an assumption by mainstream media outlets that the income tax cut of 1p from 20p to 19p would merely be delayed. They were all wrong.

Do not assume that the Ofgem price cap is safe from abolition. Laws can be amended, implemented or removed to make it happen by then.

The OFGEM cap is much more likely to stay because it costs the government nothing, actually relates to the wholesale prices, and gives them someone else to blame.

https://www.telegraph.co.uk/business/2022/10/15/energy-price-cap-torn-plans-considered-whitehall/

https://www.energynewsline.co.uk/energy-live-news/uk-energy-price-cap-could-soon-be-scrapped/

Both of which articles say the cap could stop in two years when the original EPG was due to end.

 Not much relevance to this new situation.

Most of the largest energy companies have been calling for energy cap to be scrapped and replaced by social tariff for a long time, I suspect those calls will get louder during forthcoming months.

https://uk.search.yahoo.com/search?fr=mcafee&type=E210GB691G0&p=energy+cap+replaced+by+social+tariff

• MP’s last month suggested creating a social tariff as a replacement to the price cap, one that is cheaper than others, for the most vulnerable. The business and energy select committee said the discounted energy bills would be funded either by wealthier bill-payers, or through taxation.

https://www.theguardian.com/business/2022/jul/30/can-social-tariffs-solve-the-uks-looming-fuel-poverty-cataclysm

ariarnia

bristolleedsfan said:

Deleted_User said:

bristolleedsfan said:

Deleted_User said:

tghe-retford said:

There was also an assumption by mainstream media outlets that the income tax cut of 1p from 20p to 19p would merely be delayed. They were all wrong.

Do not assume that the Ofgem price cap is safe from abolition. Laws can be amended, implemented or removed to make it happen by then.

The OFGEM cap is much more likely to stay because it costs the government nothing, actually relates to the wholesale prices, and gives them someone else to blame.

https://www.telegraph.co.uk/business/2022/10/15/energy-price-cap-torn-plans-considered-whitehall/

https://www.energynewsline.co.uk/energy-live-news/uk-energy-price-cap-could-soon-be-scrapped/

Both of which articles say the cap could stop in two years when the original EPG was due to end.

 Not much relevance to this new situation.

Most of the largest energy companies have been calling for energy cap to be scrapped and replaced by social tariff for a long time, I suspect those calls will get louder during forthcoming months.

https://uk.search.yahoo.com/search?fr=mcafee&type=E210GB691G0&p=energy+cap+replaced+by+social+tariff

• MP’s last month suggested creating a social tariff as a replacement to the price cap, one that is cheaper than others, for the most vulnerable. The business and energy select committee said the discounted energy bills would be funded either by wealthier bill-payers, or through taxation.

https://www.theguardian.com/business/2022/jul/30/can-social-tariffs-solve-the-uks-looming-fuel-poverty-cataclysm

only problem with a social tariff is that its normally only for those in receipt of specific benifits. given the level of some forecasts (and the current ofgem cap) there's going to be a lot of people who for one reason or another don't qualify who would really struggle if there was no other level of support. all benefits have cliff edges but this is one heck of a cliff. 

Sea_Shell

blueste said:

At various points in the interview below (35seconds and 4minutes 25seconds are examples) Truss claimed that the average household will still pay £2500 for Energy, but that is no longer true. Since that estimate was based on the price cap being in place for a year and it will no longer will be from April 23 we actually have little idea what a typical family will pay!
https://www.bbc.co.uk/iplayer/episode/p0d7mmk8/bbc-news-special-prime-minister-apologises-for-mistakes#xtor=CS8-1000-[EditorialPromo_Box]-[NewsEditorial_Promo]-[NewsEditorial_Promo]-[PS_IPLAYER~N~p0d7mmk8~P_TrussInterview]

But as the cap was always reviewed every 6 months, no one ever paid the annual equivalent of any said published cap, as it would change again in 6 months time.