[News] Energy bills to top £4200 at the start of next year

[Neville's Breakfast]

I haven't read this whole thread and I might be a bit thick, but if we are mining our own coal and pumping our own oil and gas from the North Sea, then why are we charging ourselves the global price for these fuels?
Why doesn't the Government just say to the producers- supply the domestic market for cost (+5% ie) and make your money on exports?

Because ‘we’ don’t own the assets. Oil, gas, electricity is only being drilled, piped, generated because private capital has invested in the infrastructure. I have no objection to nationalizing the lot but we cannot go back in time. We will have to pay for these assets and also continue investing at the same rate as is currently happening by private money. Do you want to put politicians in charge of that kind of long term decision making ? I think we could but the consensus on here is that politicians couldn’t run a piss up in a brewery. An alternative might be more regulation over hedging strategy. Bit late for this winter though.

 

[Bodian]

I see E.ON's profits for the first six months of the year were over £3bn.

 

[KZNSeagull]

The Chair of the Business, Energy and Industrial Strategy Select Committee Darren Jones MP said on BBC Breakfast this morning that they are recommending the freezing of the price cap at the current levels.

 

[Since1982]

The Chair of the Business, Energy and Industrial Strategy Select Committee Darren Jones MP said on BBC Breakfast this morning that they are recommending the freezing of the price cap at the current levels.

That's what Labour and the Lib Dems have been saying. Just now waiting for Truss and the rest of the Tories to catch up and then call it something else as they did with the windfall tax.

 

[Neville's Breakfast]

That's what Labour and the Lib Dems have been saying. Just now waiting for Truss and the rest of the Tories to catch up and then call it something else as they did with the windfall tax.

That’s a little like the pointless arguments about who invented which football song. Windfall taxes weren’t invented by any modern day politician. Or is it ok for some of them to use the idea and not others ?

 

[trueblue]

Heard a guy on the radio yesterday who I think used to be high up in British Gas and now teaches/acts as a consultant on this topic. One very interesting aspect was his condemnation of how little has been done in the UK to make individuals and businesses reduce their power usage. Across Europe, businesses are going dark at night, switching off air-con etc to help prevent future shortages which otherwise seem inevitable. Here, nothing. If we could harness all the hot air Truss and Sunak spout to power the country through the winter we might be alright. Instead, while they argue among themselves, we continue to treat power as an infinite commodity (bar those who can't afford to feed their families any more unless they keep everything unplugged).

 

[Since1982]

That’s a little like the pointless arguments about who invented which football song. Windfall taxes weren’t invented by any modern day politician. Or is it ok for some of them to use the idea and not others ?

They chose not to use the term windfall tax because they had foolishly argued against it for weeks. Its about whether you recognise a problem is coming and propose a plan to try and mitigate it or wait, in this case because you are obsessed with your internal party politics, leaving millions in genuine fear as to how they will survive the winter. Much easier to propose solutions when you are in opposition of course but that doesn't excuse this bunch of self serving, 3rd rate politicians we have in power at the moment.

 

[Neville's Breakfast]

They chose not to use the term windfall tax because they had foolishly argued against it for weeks. Its about whether you recognise a problem is coming and propose a plan to try and mitigate it or wait, in this case because you are obsessed with your internal party politics, leaving millions in genuine fear as to how they will survive the winter. Much easier to propose solutions when you are in opposition of course but that doesn't excuse this bunch of self serving, 3rd rate politicians we have in power at the moment.

Yes, but the Windfall Tax is a good solution. Are you really going to react to its increase with an argument about who invented it ? By the way we already have one (introduced on 26th May). Fair play to Labour for arguing in favour for so long.

 

[Kinky Gerbil]

Cut on VAT and green Tax going should be the first things to go £300 v £60 using the example above.

 

[KZNSeagull]

That's what Labour and the Lib Dems have been saying. Just now waiting for Truss and the rest of the Tories to catch up and then call it something else as they did with the windfall tax.

It also what the energy suppliers have been pushing too.

 

[Weststander]

I see E.ON's profits for the first six months of the year were over £3bn.

They’re German, that’s their entire profits from the retail arm across the continent and the UK. Annual revenues of €77b. E.ON’s UK profits for the 5 years to 2020 averaged £86m, averaging £23 per customer per annum.

It’s the exporting producers including some states (Norway, Russia, Saudi, Qatar, UAE) who are minting vast sums.

 

[Since1982]

Yes, but the Windfall Tax is a good solution. Are you really going to react to its increase with an argument about who invented it ? By the way we already have one (introduced on 26th May). Fair play to Labour for arguing in favour for so long.

It’s not a question of who “invented” it, the issue is we have a govt behind the curve, reacting according to a timetable that suits it rather than the people they should serving. As others have pointed out there is consensus about the need to take radical action, Labour, Lib Dems and the energy companies have a relatively singular view, the Resolution foundation have another interesting approach. Meantime Truss and Sunak are floundering and Johnson is MIA. They are, yet again, dropping the ball.

 

[BLOCK F]

Glad we’ve got a log burner in the sitting room.
There are only two of us and long as that room is warm, we’re not too bothered about the rest of the house.The kitchen gets pretty warm when the oven is on.
Got plenty of logs in and another load being delivered next week.
We will, of course, take steps to cut down our energy consumption where possible.

 

[birthofanorange]

It’s not a question of who “invented” it, the issue is we have a govt behind the curve, reacting according to a timetable that suits it rather than the people they should serving. As others have pointed out there is consensus about the need to take radical action, Labour, Lib Dems and the energy companies have a relatively singular view, the Resolution foundation have another interesting approach. Meantime Truss and Sunak are floundering and Johnson is MIA. They are, yet again, dropping the ball.

This. ^

 

[Eeyore]

Remember when the prize used to be a teasmade ?

 

[Neville's Breakfast]

Glad we’ve got a log burner in the sitting room.
There are only two of us and long as that room is warm, we’re not too bothered about the rest of the house.The kitchen gets pretty warm when the oven is on.
Got plenty of logs in and another load being delivered next week.
We will, of course, take steps to cut down our energy consumption where possible.

We have one as well. Only really used it for aesthetics in the past. Is it a viable economic alternative ? I was going to work it out myself.

 

[cloud]

We are both still working from home, one as self-employed and the other as an employee who is only expected to go in once a fortnight. Presumably we can offset much of the additional heating costs against tax?
I know the £6 per week deal finished, but it we can put the costs onto a tax return then we can effectively let the government pay for it through reduced tax.

 

[Neville's Breakfast]

We are both still working from home, one as self-employed and the other as an employee who is only expected to go in once a fortnight. Presumably we can offset much of the additional heating costs against tax?
I know the £6 per week deal finished, but it we can put the costs onto a tax return then we can effectively let the government pay for it through reduced tax.

No, I don’t thinks so. Pretty sure you can only offset expenses that are incurred entirely by your business ie no personal use.

 

[Weststander]

We are both still working from home, one as self-employed and the other as an employee who is only expected to go in once a fortnight. Presumably we can offset much of the additional heating costs against tax?
I know the £6 per week deal finished, but it we can put the costs onto a tax return then we can effectively let the government pay for it through reduced tax.

For the self employed person, there are various ways of working it out. One legit method, assuming that part of the home is used for business, is to calculate and claim:

Fixed costs (insurance if no trade policy, mortgage interest or rent, some repairs) - claim a fair apportionment for each, that could be fully justified to HMRC if subject to an enquiry.

Variable running costs (home energy, metered water) - claim a sum that represents the facts of the usage by the business. Water I suspect little can generally be claimed as business related, home energy significantly more if the home would otherwise be genuinely unoccupied with that self employed working from home.

Or for variable running costs, instead claim the simplified arrangements fixed rates.

That’s enough for a Saturday evening.

 

[Weststander]

No, I don’t thinks so. Pretty sure you can only offset expenses that are incurred entirely by your business ie no personal use.

That’s for employed folk.

More flexible for the self employed or owner directors of companies WFH, where they do not have a alternative proper business address.