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

[Marty___Mcfly]

You've got to love government - broadly leaked that the energy cap would be at the existing level of £1971, then leak again that it will actually be at the higher rate of £2500.

I guess they then have 48 hours to gauge the response from the analysts and public at large to decide which number to go with. If they go with the £2500 it's not a "freeze" as such, but the public will more than likely fall for it, as it's "not as bad as it could have been".

Still an increase that will affect the most vulnerable the most - as per usual!

Let's see, come Thursday...

I think the £400 handout - which we are all getting October onwards - was based on the likely rise to £2500, so I guess they would say they are freezing at what it was going to be- and holding that level though the next 2 winters - rather than continuing to rise as was forecast.

 

[darkwolf666]

did government leak either number or journo speculation? i dont think the first number based on anything other than the last price cap. considering wider effects of long term cost, support for business, maybe a higher number with additional support for lower incomes will be btter than lower average number.

Agree, some targeting would be good, although the argument is always it’s not cost effective to means test, we shall see.

As for whether the figures have come from Government, who knows. As per my original point, if true, it’s still an increase, but not as much as it could have been!

The devil as they say is in the detail.

 

[mejonaNO12 aka riskit]

So people who panic froze their prices a few months back (in an attempt to pre-empt the massive increases further down the line) have basically paid WAY over what they would be paying on variable for the last few months....and their end plan has been scuppered as the cap will 'only' be £2500.

 

[GT49er]

You've got to love government - broadly leaked that the energy cap would be at the existing level of £1971, then leak again that it will actually be at the higher rate of £2500.

I guess they then have 48 hours to gauge the response from the analysts and public at large to decide which number to go with. If they go with the £2500 it's not a "freeze" as such, but the public will more than likely fall for it, as it's "not as bad as it could have been".

Still an increase that will affect the most vulnerable the most - as per usual!

Let's see, come Thursday...

The companies (or some of them at least) have upped their prices to £2500 already, in order to pre-empt any Government action.

 

[Weststander]

Agree, some targeting would be good, although the argument is always it’s not cost effective to means test, we shall see.

As for whether the figures have come from Government, who knows. As per my original point, if true, it’s still an increase, but not as much as it could have been!

The devil as they say is in the detail.

Starmer was asked directly about targeting support and was clear that it cannot be done.

As the IT system doesn’t exist that ties the necessary information. In addition all parties seem in agreement that middle income families even if they’re sitting pretty, should be shielded from the effect on prices of Putin’s vengeance.

 

[Weststander]

Annual energy bills on average use from October will be:

- for most £2,100 (£2,500 less £400 in support).

- for 8 million households £1,776 (£2,500 less £400 less £324 being the second additional support instalment).

A far cry from the £6,600 predicted by analysts for next year, this was only going to get worse as Putin’s aide today confirmed that Nordstream2 will now stay closed for good until free Europe gives in.

 

[beorhthelm]

story bubbling around that the energy crisis turns into a debt crisis. while some companies involved in energy chains might book large profits, others are suffering losses and many looking profitable have large short term debt or market positions deeply negative. if they cant manage the debt or get margin calls, go to zero quickly.

 

[Icy Gull]

So people who panic froze their prices a few months back (in an attempt to pre-empt the massive increases further down the line) have basically paid WAY over what they would be paying on variable for the last few months....and their end plan has been scuppered as the cap will 'only' be £2500.

As one who did that I am very happy to have been proved wrong and pleased that people who would have suffered way more than me can breath a little easier. Panic is a little OTT, calculated risk and forward planning that I’m pleased to see didn’t work out is how I see it.

You do smug very well.

 

[vegster]

Annual energy bills on average use from October will be:

- for most £2,100 (£2,500 less £400 in support).

- for 8 million households £1,776 (£2,500 less £400 less £324 being the second additional support instalment).

A far cry from the £6,600 predicted by analysts for next year, this was only going to get worse as Putin’s aide today confirmed that Nordstream2 will now stay closed for good until free Europe gives in.

Is this actually confirmed ? If so it's a huge relief...Next up business's need a cap or a bail out otherwise there will be carnage.

 

[Beach Hut]

Annual energy bills on average use from October will be:

- for most £2,100 (£2,500 less £400 in support).

- for 8 million households £1,776 (£2,500 less £400 less £324 being the second additional support instalment).

A far cry from the £6,600 predicted by analysts for next year, this was only going to get worse as Putin’s aide today confirmed that Nordstream2 will now stay closed for good until free Europe gives in.

I think there is still going to be major issues on energy costs, ours have effectively now doubled in price

 

[WATFORD zero]

The companies (or some of them at least) have upped their prices to £2500 already, in order to pre-empt any Government action.

The companies haven't upped their prices already as they are not allowed to, hence 'price cap'.

What some have done is upped the actual DDs people are paying to get them into credit (or more credit) and lessen the size of the DD rise which will have to come in October.

 

[GT49er]

The companies haven't upped their prices already as they are not allowed to, hence 'price cap'.

What some have done is upped the actual DDs people are paying to get them into credit (or more credit) and lessen the size of the DD rise which will have to come in October.

They have raised the DD so that my annual payment is now set to be £2700 (12 X £225.00). I don't want to build up 'credit' - I'll increase my DD if necessary, but to an amour I want - I'll pay a settlement bill at the end of the year.

 

[Bozza]

They have raised the DD so that my annual payment is now set to be £2700 (12 X £225.00). I don't want to build up 'credit' - I'll increase my DD if necessary, but to an amour I want - I'll pay a settlement bill at the end of the year.

Everyone is different. We're happy to massively overpay in the summer months so we have a buffer available to offset the increased winter usage - we're currently paying around three times what we are actually using.

And for many households, regular fixed bills are preferable for them, allowing them to know month-by-month what their outgoings are. Paying, say, 12 * £200 is better than paying 12 * £150 and having to find a £600 lump sum in the future, or having to jump up to £250 per month to offset the "debt" they have accrued.

Fair enough if that's not for you and you have full confidence of being able to make up whatever you owe, but that's not the case for everyone.

 

[WATFORD zero]

They have raised the DD so that my annual payment is now set to be £2700 (12 X £225.00). I don't want to build up 'credit' - I'll increase my DD if necessary, but to an amour I want - I'll pay a settlement bill at the end of the year.

Fair enough, if the Energy company are happy to give you credit until the end of the year with current Interest rates and future price rises

 

[crodonilson]

I'm with Octopus and have a smart meter, however that means I am charged for usage which means our bills over the summer have been very small, circa £60 p/m. Is there any way if you have a smart meter you can still pay a fixed monthly cost averaged out over a whole year, looking online and can't see how to change my payment preferences beyond the date I pay.

 

[Weststander]

Is this actually confirmed ? If so it's a huge relief...Next up business's need a cap or a bail out otherwise there will be carnage.

Every paper from the Mirror to Telegraph reported it, so I assume they were were briefed. Nothing concrete yet.

 

[Weststander]

I think there is still going to be major issues on energy costs, ours have effectively now doubled in price

From £1,100 pre Putin, to £2,100, a £1k rise. Better than the widely forecast £5,500 rise to £6,600.

For you and I, 0.25 less of a holiday per annum?


But definitely, 8m households are already, it’s real - inflation of energy, car fuel, groceries. People are using up any savings built during lowdowns, pawning stuff, maxing out on credit cards.

 

[Weststander]

The companies haven't upped their prices already as they are not allowed to, hence 'price cap'.

What some have done is upped the actual DDs people are paying to get them into credit (or more credit) and lessen the size of the DD rise which will have to come in October.

Exactly.

Octopus explained that to us in early August, it made sense, I agree with their approach.

 

[darkwolf666]

I'm hoping it's just scaremongering, but there seems to be some doubt as to whether the Government will go through with paying the cost of living payments they had promised, as the new deal will supersede the original proposals and payments.

While the freeze at £2500 is welcome news (sort of), it is still a potential further increase in people's energy costs of another £500 a year, that will be very difficult for some, particularly those on fixed incomes, to find.

 

[LamieRobertson]

A useful guide from Moneysavingexpert.com re how firms set their direct debits

https://www.moneysavingexpert.com/utilities/energy-direct-debits/