The Great Offgem Ripoff

Madmountainman

So, you're probably all aware, Offgem want to increase everyone's bills by £16 to pay off other people's energy debts.
Now, there will be a mix of people in debt with this, but I expect there are plenty that have not even tried to be frugal, have heated their homes and run up debts whilst likely running up further debt to have a fun Christmas.
I just read this letter in the paper which shows one side of the issue and it's apparent unfairness. So, if Martin's reading this and possibly thinking of supporting the idea, please take everyone's views into account.

SIR – I am 81 and live in a one-bedroom, sheltered-housing flat. I haven’t put on my central heating this winter. I simply wear more clothes, or, if sitting for any length of time, snuggle under a heated throw, which is economical and heats me but not the room.

I understand that my reward for this frugality is to give £16 to someone who has enjoyed being warm and got into debt. Apparently I have no say in the matter. It would appear that the only way I can object to this injustice is to turn up the thermostat, enjoy the sauna, get into debt and let others bail me out.

(Removed by Forum Team)
Bishops Waltham, Hampshire

Whilst on the subject of things Martin has pushed for and supported, i'll just mention the Covid Stay At Home Payouts.
This was the wonderful idea whereby people earning a lot more than the minimum wage were paid 80% of their wages to stay at home, put their feet up and enjoy life - whilst at the same time, also watching their savings escalate which often then further pushed house prices upwards.
Meanwhile, the rest of us on the minimum wage kept this country running and the only one's to get any thanks were the NHS - and all they got was some virtue signalling happy clapping.
So, Martin, when are you going to push for those of us that worked through Covid to have a financial reward and recognise all the hard work and effort we put in?

JSHarris

The system is well and truly broken, for sure.  Has been for a long time and there's no indication that it's ever likely to improve.  All that happens with every passing year is that another layer of sticking plaster complexity gets added, to try and cover up the problems created from poor decisions made in earlier years.

The energy supply business needs root and branch reform.  The model used is not fit for purpose now and is placing far too high a burden on low energy users.  I cannot see any prospect that anything will change any time soon, though, far too many people in government have their snouts in the trough and have zero interest in anything that may reduce the size of their backhanders or lucrative post-government promised jobs.

QrizB

1. Martin doesn't read the forum.

2. You've included personally-identifying information, contrary to the forum rules.

3. If you are now 81 and were working through COVID for minimum wage, you were still working at 78.

4. For goodness sake turn your heating on. Your in sheltered housing for a reason.

molerat

2), 3) & 4)  That was a letter in the press, not the OP.

Brie

How's this supposed to work?  Just if you are in debt and not in credit on your energy account?  What if you are in credit on one account for electricity but in debt with another provider for your gas?  Or heating fuel??  What if it's a blip in that you're having a temporary cash flow issue?  Or have just had a DRO which has wiped your debt?

JSHarris

QrizB said:

1. Martin doesn't read the forum.

2. You've included personally-identifying information, contrary to the forum rules.

3. If you are now 81 and were working through COVID for minimum wage, you were still working at 78.

4. For goodness sake turn your heating on. Your in sheltered housing for a reason.

Worth actually reading the post, perhaps.  The quote is from a letter published in a paper, so the personal information is already in the public domain (it is not something written by @Madmountainman and is not his personal information)

There is nothing in that post to suggest that @Madmountainman is 81, either.

masonic

Brie said:

How's this supposed to work?  Just if you are in debt and not in credit on your energy account?  What if you are in credit on one account for electricity but in debt with another provider for your gas?  Or heating fuel??  What if it's a blip in that you're having a temporary cash flow issue?  Or have just had a DRO which has wiped your debt?

The proposal is that an extra allowance is made to the price cap in the standing charge. It would apply to SVT tariffs where users are billed for energy in arrears (i.e. all except prepayment tariffs). It would be charged whether or not the customer's account ever in fact goes into a negative balance. The way to avoid it would be to switch to a prepayment tariff/meter, or a non-price-capped tariff.

Brie

masonic said:

Brie said:

How's this supposed to work?  Just if you are in debt and not in credit on your energy account?  What if you are in credit on one account for electricity but in debt with another provider for your gas?  Or heating fuel??  What if it's a blip in that you're having a temporary cash flow issue?  Or have just had a DRO which has wiped your debt?

The proposal is that an extra allowance is made to the price cap in the standing charge. It would apply to SVT tariffs where users are billed for energy in arrears (i.e. all except prepayment tariffs). It would be charged whether or not the customer's account ever in fact goes into a negative balance. The way to avoid it would be to switch to a prepayment tariff/meter, or a non-price-capped tariff.

So people who are in debt but on DD with their provider would be hit with this as well.  And presumably once for household even if there's 2 providers for utilities?

debitcardmayhem

More to the point of the £16 proposed uplift of the cap, what percentage is going on which type of energy. Another half-cocked NGO idea thought up by a wet behind the ears junior perhaps?

edit: perhaps if the cap fits ……

MultiFuelBurner

4.4p a day a quick guesstimate 3p on electricity and 2p on gas.(as there are less gas supplies than electricity)

But aren't we due some to drop off the standing charges soon? Or maybe that's wishful thinking.

wrf12345

I repeat, Ofgem has no interest in consumers...