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

[KZNSeagull]

doesnt sound like much meat on the bone announced today, broad outline of a price fix, different numbers are reported.

Indeed. There was speculation on the radio that they have done a deal with the UK based energy producers to cap the actual price that they will charge for oil and gas and also electricity from the green suppliers in the UK (ie interfere in the market). Didn't hear anything about that. Maybe the detail is coming later.

Just seen this: https://www.bbc.co.uk/news/science-environment-62832029

 

[Randy McNob]

Truss leadership campaign funded by wife of former BP exec

#notonyourside

[tweet]1567818227106959360[/tweet]

 

[LamieRobertson]

This is the email ML from monseysavingexpert.com that was sent to all subscribers today…peeps might find it useful…comments on benefits/pensioner payments and to those on fixed rates….i was going to start a new thread to post it and then add twenty others, but thought better of it





On the back of a prior briefing and the announcement in Parliament, here is my very quickly bashed out summary of the new energy price freeze.

The new price guarantee starts 1 October, and for someone on typical use will be £2,500 a year and will last for two years.

The current price cap is £1,971 a year rate at typical use, and was due to rise to £3,549 a year (and likely £5,400 a year in January). It was £1,277 a year last winter.

This will be a cap on standing charges and unit rates, so use less you pay less, use more you pay more (I’ll publish the rates when I have them). There is no total cap on what you pay, the typical rate is just a figure for illustration.

The new lower price cap includes getting rid of the green levies.

The £400 payment to all homes (paid as £66 a month over winter) will continue.

That will take the average payment to £2,100 a year.

To estimate what you’ll pay, over a year, multiply current costs by 6.5% (each £100 becomes £106.50). This includes the £400 discount (but not other payments).

For those with lower than typical bills, the % increase will be lower, for higher users higher (as the £400 payment is flat regardless of use, so has a bigger proportionate reduction on lower usage).

The £650 payments to those on many benefits will continue (half’s already been paid).

As will the £150 to those with disabilities and £300 to pensioners.

There’s no announcement on whether these payments will be in place next winter – I suspect the political reality is at least for benefits recipients – similar will be paid next year.

VAT is not being reduced in this announcement, but there is a chance (50-50 I’d say) that may happen in the Chancellor’s fiscal statement next week.

For those on LPG and heating oil, I’m told there will be discretionary payments to help them too (awaiting details).

For those in park homes and who pay landlords directly, I’m told they should benefit from the new business help (awaiting details).

I'm hearing fixed tariffs will have the same per pound unit rate reduction as variable tariffs (ie, roughly 30% off). So it looks like, unless you fixed at over the new October price cap level, your fix will be cheaper than moving to variable. (More to check on this.)

 

[Deleted member 2719]

As this an incorrect thread title now, perhaps it should be changed?

 

[nicko31]

As this an incorrect thread title now, perhaps it should be changed?

Should be changed to …

Fossil giants profits guaranteed by UK government for 2 years.

 

[beorhthelm]

Should be changed to …

Fossil giants profits guaranteed by UK government for 2 years.

are they? so as oil/gas prices go down, the oil and gas companies will get fixed rates?

there's no funding to electricty suppliers, generators or wholesalers, to cover current prices, forward contracts and losses?

 

[nicko31]

are they? so as oil/gas prices go down, the oil and gas companies will get fixed rates?

there's no funding to electricty suppliers, generators or wholesalers, to cover current prices, forward contracts and losses?

Well guaranteed against a windfall tax. The more profit they make the more UK taxpayers will be paying back over the next decade or two

We're seeing disaster capitalism at its worse on the back of the Ukraine war.

 

[nicko31]

Not every day I see something written in the Daily Express to be more or less on the money...

https://www.express.co.uk/comment/e...adBqdsqCdbIi1p8HjM7oUvhG-d5Mdna2vf1l6TqvMCosA

 

[beorhthelm]

Not every day I see something written in the Daily Express to be more or less on the money...

https://www.express.co.uk/comment/e...adBqdsqCdbIi1p8HjM7oUvhG-d5Mdna2vf1l6TqvMCosA

its another talking his own book, selling green energy. first off, the current plan is no perfect solution, its proposed to deal with the short term crisis. second it would be great to reform the market, overlooks the reason for margin pricing. when normally gas was £30-40MWh and wind >£100, it meant the wind power was economical for suppliers to use it. now wind is cheaper and gas quadrupled, that doesn't work.

however going 100% wind wouldnt work either because it varies, we must have some alternative instantly available power. its a fantasy to say in 5 year we could build enough wind to meet demand, let alone the storage to cover when the wind drops. we've been let down decades of politicans and activists selling us a dream, now there's a crunch on supply we need a quick fix. europeans are talking of a cap on production prices, once thats in place we'll probably follow (if we go alone the producers will sell to europe not us).

 

[Marty___Mcfly]

Possibly worth looking at tidal / hydroelectric - to back up variable wind and solar.

 

[LamieRobertson]

its another talking his own book, selling green energy. first off, the current plan is no perfect solution, its proposed to deal with the short term crisis. second it would be great to reform the market, overlooks the reason for margin pricing. when normally gas was £30-40MWh and wind >£100, it meant the wind power was economical for suppliers to use it. now wind is cheaper and gas quadrupled, that doesn't work.

however going 100% wind wouldnt work either because it varies, we must have some alternative instantly available power. its a fantasy to say in 5 year we could build enough wind to meet demand, let alone the storage to cover when the wind drops. we've been let down decades of politicans and activists selling us a dream, now there's a crunch on supply we need a quick fix. europeans are talking of a cap on production prices, once thats in place we'll probably follow (if we go alone the producers will sell to europe not us).

Indeed weren’t their issues in Europe in the Summer of 2021 due to a lack of wind

 

[nicko31]

Disaster capitalism may rule the roost here on the back of Putin's invasion, but the EU are about to get serious about windfall taxes on energy producers.

https://edition.cnn.com/2022/09/14/business/eu-energy-crisis-windfall-tax/index.html

 

[Dick Swiveller]

Just looked at my usage for the last year, applied the price cap amounts and came up with - £2500! Call me Mr Average.

 

[Weststander]

Just looked at my usage for the last year, applied the price cap amounts and came up with - £2500! Call me Mr Average.

Always the same for us

Then deduct the further £400 and (relatively speaking, after the £6,600 narrative) …. relax.

 

[schmunk]

Just looked at my usage for the last year, applied the price cap amounts and came up with - £2500! Call me Mr Average.

£3,900 here...

We have used less energy month-on-month in 2022 to date, though, so should be a bit lower.

 

[Bozza]

Since we've become more "energy focused", we've been averaging around 6.5 kWh of electricity per day this month.

Flicking back to September 2021 in the Hugo app I can see we were at around 10.5 kWh in September last year.

6.5 * 365 = 2,372 kWh, so our current usage puts us below the average used in the "£2,500/year calc" which is 2,900 kWh.

I still think we might be using more than we could though. When I look at the smart meter monitor thing when I get up around 7am, we're already close to 1kWh most days, which feels high and I still suspect our old fridge freezer as the chief culprit.

 

[Dick Swiveller]

Always the same for us

Then deduct the further £400 and (relatively speaking, after the £6,600 narrative) …. relax.

Yep - first thing I did was lower my payments as I have built up credit and have this extra to come so probably £50 pm more than last year. Still a lot of money and won't be as easy to absorb for a lot of people.

 

[Since1982]

Since we've become more "energy focused", we've been averaging around 6.5 kWh of electricity per day this month.

Flicking back to September 2021 in the Hugo app I can see we were at around 10.5 kWh in September last year.

6.5 * 365 = 2,372 kWh, so our current usage puts us below the average used in the "£2,500/year calc" which is 2,900 kWh.

I still think we might be using more than we could though. When I look at the smart meter monitor thing when I get up around 7am, we're already close to 1kWh most days, which feels high and I still suspect our old fridge freezer as the chief culprit.

We are averaging 8.5kwh of electricity per day this month and have become much more energy aware. We cook with an induction hob and an electric oven (more recently an air fryer when we can). Your 6.5kwh looks very good to me!

 

[WATFORD zero]

I've just gone and put all our bills for the last two years into a spreadsheet, calculated what the equivalent bills would have been using October 1st rates (also taking into account the price rises from Feb and Aug 2021 and April 22) worked out the totals for annual and average monthly at the new rates and got approx £2,100.

Then I checked my last statement and my new DD is just under a penny more than I calculated as the new monthly average. Spooky huh

 

[Weststander]

Last week, jolted by energy costs, we replaced a 5 year old tumble dryer (heat pump, A+++, but it had become rubbish at drying thicker items), with another heat pump A+++ model.

Drying time down from 6 hours to 2.

Still hanging washing out where we can, but damp days are now with us.

Oven the oven and integrated fridge-freezer, I think we've done all we can now on elec.