Energy Bills

[PaulC]

23 hours ago, tinker said:

How does the cap work for pre pay meters? Seems like the poorest of the poor won't be getting any help.  

Your price per kwh and standing charge will be frozen I guess. 

[PaulC]

3 hours ago, Genie said:

Starmer is doing an unexpectedly good job here making his points.

Much more passion from him, and his points being made well.

Ian Blackfoot did a good job too. I think its the right measure but its going to cost 100 billion. In 12 years this govt have gone from austerity to spend spend spend. and burdening the tax payers with more debt instead of making the likes of Shell and BP pay for it.  Truss I think will be a disaster. Worse than Boris. 

[sidcow]

Sooooo, anyone know if anything was announced on this in the end? 

Edited September 8, 2022 by sidcow

[sidcow]

Poor old Liz. In her eyes she's pulled off a masterstroke and saved the world today and instead of bathing in the glory she's become a footnote

[Genie]

2 minutes ago, sidcow said:

Poor old Liz. In her eyes she's pulled off a masterstroke and saved the world today and instead of bathing in the glory she's become a footnote

I think Liz Truss was in the middle of being torn apart in the HoC so it was a bit of a let off.

[AlwaysAVFC]

In part due to events yesterday but the announcement of the plan for the energy assistance has been a shambles with more questions than answers.

Not sure if it's because he deleted it because the facts weren't clear or because of the criticism and arguments on his tweet about whether he was right to post it yesterday evening, but he said those on a fix might end up with a cheaper rate than the variable because if the way they were lowering the unit price being paid by customers also applied to fixes.

He obviously felt it was important as people were cancelling fixes when they might be better to stay.

So more waiting for it to be properly announced.

It also looks look the cap is applying to businesses too which is great news for businesses, although God knows how much that means the final bill to be paid will amount to and whether they have under predicted the true cost to tax payer.

 

[Genie]

There was great sequence yesterday.

LT: Our immediate plan to ensure we’re never in this situation of vulnerability to external shocks includes getting shale gas flowing within 6 months and increasing output of North Sea gas.

SKS was clearly well prepared for this and had on hand 2 quotes from the new chancellor. In 1 he said getting usable shale gas will take more than 10 years and in the other increasing north sea gas production would have no impact on global prices as its insignificant in the global terms.

In another speech by SKS he said that the government say their reasons for not applying additional taxes to Shell and BP is because it would hold back and discourage their investment. SKS had a quote from the BP chief executive where he said if a windfall tax was applied they would not cut any investments.

They closed up shortly after that. 

[AlwaysAVFC]

I've been reading more into what is happening to those on fixes. Martin Lewis still says that there is to be further clarification but there does seem to be advice now on the government website.

https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022

Quote

If you’re on a fixed tariff

If you’re on a fixed tariff at a higher rate caused by recent energy price rises, your unit prices will be reduced by 17p/kWh for electricity and 4.2p/kWh for gas.

These unit prices have been passed to suppliers to ensure that they are used to calculate bills on time for 1 October.

Energy suppliers will adjust fixed tariffs automatically. Customers on fixed tariffs do not need to take any action to get the benefits of this scheme.

This seems too good to be true unless I'm interpretting it wrong, taking those figures off my fix takes it to 19.676p for electricity and 6.33p for gas. Comparing that with the 34p and 10.3p for standard variable and even what it is before the October rise. It just feels very low and that it won't work that way. 

[Davkaus]

38 minutes ago, AlwaysAVFC said:

I've been reading more into what is happening to those on fixes. Martin Lewis still says that there is to be further clarification but there does seem to be advice now on the government website.

https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022

This seems too good to be true unless I'm interpretting it wrong, taking those figures off my fix takes it to 19.676p for electricity and 6.33p for gas. Comparing that with the 34p and 10.3p for standard variable and even what it is before the October rise. It just feels very low and that it won't work that way. 

The caveat is "at a higher rate caused by recent energy price rises". I assume they're only applying this to customers who have taken on agreements for extremely expensive fixed prices well above the standard tariff.

If it was a flat reduction, as I'm on a fix from last year, they'll be paying me 0.2p per KWH for gas consumption.

[AlwaysAVFC]

7 hours ago, Davkaus said:

The caveat is "at a higher rate caused by recent energy price rises". I assume they're only applying this to customers who have taken on agreements for extremely expensive fixed prices well above the standard tariff.

If it was a flat reduction, as I'm on a fix from last year, they'll be paying me 0.2p per KWH for gas consumption.

My guess while reading it was that any reduction would only take it upto the standard variable and not below, I guess that's where the clarification is needed. 

 

 

[AlwaysAVFC]

Seems like most people are going to be paying the same rate. The exception being the ones who have had their fix for a while and it's lower than the energy price guarantee. Fixes will be lowered by no more than the guarantee and the very high fixes will by reduced the 17p electric and 4.2p gas, but anyone on those will most likely be able to get out their fix and go on the standard variable anyway.

[CVByrne]

The strength of the US Dollar is putting up the price of nearly everything, especially oil

[Genie]

Thank goodness we have our control back

 

[sidcow]

11 minutes in.

Basically new Wind Projects will be able to generate electricity at £48 per MWH v Gas currently at £446 per MWH

And as a by the way the new Nuclear Reactor at Hinckley point has agreed a price of £92.50/MWh (in 2012 prices), which will be adjusted (linked to inflation – £106/MWh in 2021 and gawd knows how much now) and at a cost of £26bn to build.

And Wind will get cheaper, not more expensive as technology develops.

 

 

[sidcow]

5 hours ago, Genie said:

Thank goodness we have our control back

 

That's Boris getting the big decisions right that is.

[foreveryoung]

5 hours ago, Genie said:

Thank goodness we have our control back

 

But but, what about the facts spouted on here, it's not profiteering??

[Davkaus]

9 minutes ago, foreveryoung said:

But but, what about the facts spouted on here, it's not profiteering??

Who's said there's no profiteering?

[CVByrne]

I completely missed the Truss plan. Which is basically borrowing what could be more money than Covid furlough scheme and the bailout of the banks combined. Borrowing all of it.

No additional windfall taxes and no sliding scale energy levy with higher % charge on higher energy users (see people with really big houses). 

No, we'll just borrow it. What international markets think of that is UK is clueless. Sterling hammered and weak pound makes all imports more expensive worsening inflation. Worsening the cost of the Truss plan.

This is absurd. Totally the worst option in terms of how we pay. It's just **** it, we'll make it someone else's problem 

[bickster]

22 minutes ago, CVByrne said:

Totally the worst option in terms of how we pay. It's just **** it, we'll make it someone else's problem 

It's the best plan if the Tories want to get relected in 2028

Which, is exactly what they are up to

Meanwhile, did I read something about an EU wide windfall tax on Energy companies?

[CVByrne]

2 hours ago, bickster said:

It's the best plan if the Tories want to get relected in 2028

Which, is exactly what they are up to

Meanwhile, did I read something about an EU wide windfall tax on Energy companies?

It's exactly that, focus on what will win you the election not what is the best thing to do for a country in crisis