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

[LANGDON SEAGULL]

Just logged into Bulb and checked here I am. £441 in credit so they reckon I should lower my payments. This was after they told me a few months ago I needed to pay £200 a month and wouldn't set it much lower. No energy company ever seems to understand the concept of electric heating. I put my council tax rebate in and allowed them to take too much knowing it will cost a fortune in the winter. Stop trying to derail me you halfwits. They were forever trying to tell me I wasn't paying enough until I phoned them up and shouted at them. Now I am purposely paying too much, they want me to pay less.

I’ve just received an email saying I’ve been refunded £144 electricity credit as I’ve paid too much , doing exactly what you are doing here . Think a phone call is needed on Monday


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[WATFORD zero]

Just logged into Bulb and checked here I am. £441 in credit so they reckon I should lower my payments. This was after they told me a few months ago I needed to pay £200 a month and wouldn't set it much lower. No energy company ever seems to understand the concept of electric heating. I put my council tax rebate in and allowed them to take too much knowing it will cost a fortune in the winter. Stop trying to derail me you halfwits. They were forever trying to tell me I wasn't paying enough until I phoned them up and shouted at them. Now I am purposely paying too much, they want me to pay less.

Exactly. Knowing what's coming, take it whist the money is there. I'm a couple of months in credit, but the rates are nowhere near their peak and it's August FFS

If I have to have a horrible unexpected bonus in April, I really won't complain.

 

[Ethelwulf]

Truss will make this worse . This country is ****ed

 

[ROBS BROTHER]

why

 

[Hugo Rune]

Truss will make this worse . This country is ****ed

Get ready. She’s coming.

 

[A1X]

Great news, they’ve found a solution.

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[Harry Wilson's tackle]

Latest predictions: £6,000 by the Spring.

Suddenly this is making ****ing off out the house, switching everything off (Mrs T can put on my ski jacket) and getting a first class season ticket to London look economically attractive. Means I'll have to do a genuine day's work, though. Hmmmm. Decisions....

 

[Icy Gull]

Properly unravelling

https://www.msn.com/en-gb/money/oth...sedgntp&cvid=70bde4f4f74f4380ad823dbea5eb1429

 

[beorhthelm]

Russia is having more "maintenance" on Nord stream pipeline to Germany this week. later in the year sanctions come into effect to ban oil imports and block their use of financial services, restricting their supply on the market. it'll be a harsh winter across Europe.

 

[KZNSeagull]

What could the government do?
We were pleased when the government announced its existing support package in May, but since then prices have escalated and that means the package is hundreds of pounds less effective than it was originally intended to be. And with January prices likely to be dramatically higher still, it's clear that the existing support package is not enough.

Whilst there are many ideas, Octopus agrees with other energy companies that the best plan is to freeze the price around the existing cap level. This would be paid for by an industry-wide fund. We'll blog details shortly, but in short — while wholesale prices are higher, companies use the fund to deliver the price freeze and when wholesale prices drop, companies pay back into the fund. This would see prices at current levels for 2-4 years, and then fall over the next decade - especially as cheap renewables come online and market reform passes the savings to customers. Crucially, it would also reduce inflation by about 3.5%, helping reduce other costs across the economy.

Surely the government can't support energy bills forever?
Absolutely right. The markets expect global gas prices to come back down in two-ish years, or sooner if the war in Ukraine resolves. This is because right now, gas storage is being increased and supply chains are being built and re-routed globally so that the UK and Europe get more reliable and resilient access to gas.

At the same time, renewable projects are being accelerated in the UK and across Europe, and electricity markets will be reformed to help bring electricity prices down via cheaper renewables. The long-term thinking in the plans we propose helps absorb the volatile and high market prices in the short term and then bring prices down as gas and electricity markets improve. We don't need magic money, we need shock absorbers and market reform.

Are prices going up more in the UK than in Europe?
Wholesale prices are very similar across Europe but government response varies by country.

Is there hope?
Yes. The price freeze proposal would stabilise prices whilst we get long-term solutions in place. And then prices will drift down to not much more than half current levels over the next decade. We will continue to work extremely hard with the rest of the industry, government and other organisation to try to make this - or alternative solutions - a reality.

Why are we not hearing about the above proposed solution (from the Octopus email posted earlier in the thread) from anyone? All we seem to be hearing is the cap increasing exponentially over time. Surely someone should be pushing this solution to get responses from all involved?

 

[beorhthelm]

Why are we not hearing about the above proposed solution (from the Octopus email posted earlier in the thread) from anyone? All we seem to be hearing is the cap increasing exponentially over time. Surely someone should be pushing this solution to get responses from all involved?

hearing about it in business press, its not the sort of sensible, pragmatic solution that creates shouty fear laden headlines. along with some help for business being worked on quietly in the Treasury.

the more difficult thing is what long term plans are. we cant keep up the pretence of relying on renewables without some firm backup, and that will need a lot investment.

 

[KZNSeagull]

hearing about it in business press, its not the sort of sensible, pragmatic solution that creates shouty fear laden headlines. along with some help for business being worked on quietly in the Treasury.

Is this solution that you alluded to the other day? Does this require government funding do you know?

 

[beorhthelm]

Is this solution that you alluded to the other day? Does this require government funding do you know?

sounds like the same thing. funding would be from banks and other investors into a pooled fund, with some gov backed guarantee (incase a recipient completely folds along the way).

 

[KZNSeagull]

sounds like the same thing. funding would be from banks and other investors into a pooled fund, with some gov backed guarantee (incase a recipient completely folds along the way).

ok, thanks

 

[Thunder Bolt]

hearing about it in business press, its not the sort of sensible, pragmatic solution that creates shouty fear laden headlines. along with some help for business being worked on quietly in the Treasury.

the more difficult thing is what long term plans are. we cant keep up the pretence of relying on renewables without some firm backup, and that will need a lot investment.

Many of us are with companies that only use 100% renewable electricity. Where are their profits going if it isn't into more investments?

Yes, I am aware that it all goes into the National Grid, but why aren't customers who only use power from renewables getting lower tariffs?

 

[Weststander]

Many of us are with companies that only use 100% renewable electricity. Where are their profits going if it isn't into more investments?

Yes, I am aware that it all goes into the National Grid, but why aren't customers who only use power from renewables getting lower tariffs?

Into truly vast and unexpected profits of £b's, they're benefitting from the rise in global gas prices, but with no additional cost to them. Contracts to 2030 or 2035 signed with HMG 8 or 10 years ago.

There was a great article in the Telegraph at the weekend explaining all. If anyone cannot see it behind a paywall, if you're interested I can post it in images later.

It was mentioned that HMG is looking just now at renegotiating these contracts.

Some individuals who set up renewables companies are out of the blue becoming billionaires.

 

[beorhthelm]

Many of us are with companies that only use 100% renewable electricity. Where are their profits going if it isn't into more investments?

Yes, I am aware that it all goes into the National Grid, but why aren't customers who only use power from renewables getting lower tariffs?

answered yourself, because of the grid. you pay for power at the marginal rate in the market, drawn from across all supply. companies claiming 100% renewable are dubious, wind power varies from a few% to 30% generated in UK. they may buy renewable over the year to match total sold with total bought, but cant do that on a day to day. if you wanted to change to just renweables supply, you'd be paying a bit less on the windy days and super high on the days low wind, or be cut off. this is why prices get so high, not enough renewable produced so they buy gas to cover.

Octopus proudly tell us their profits, small as they are, go back into expanding their business, which is billing services. they dont produce power. investment is needed in new storage technology and infrastucture.

 

[Thunder Bolt]

answered yourself, because of the grid. you pay for power at the marginal rate in the market, drawn from across all supply. companies claiming 100% renewable are dubious, wind power varies from a few% to 30% generated in UK. they may buy renewable over the year to match total sold with total bought, but cant do that on a day to day. if you wanted to change to just renweables supply, you'd be paying a bit less on the windy days and super high on the days low wind, or be cut off. this is why prices get so high, not enough renewable produced so they buy gas to cover.

Octopus proudly tell us their profits, small as they are, go back into expanding their business, which is billing services. they dont produce power. investment is needed in new storage technology and infrastucture.

I know about wind turbines, but why are the Tories decrying solar farms? Fields which could lay fallow are covered in solar panels which is all helping but both candidates are against them, pushing fracking instead. Obviously more profit for their backers in fracking.

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[Icy Gull]

I am probably the forum thicko on this but I would much rather the predictions were given in price per KW on gas and electricity rather than a blanket cost of 3k,4k,5k,6k a year. we all use differing amounts of energy. I would find it reasonably easy to calculate costs based on what the kw price rises are expected to be this Friday and in the next cap rise working on what they were for me before these increases. Just giving a scare mongering blanket cost is not helpful...well to me anyway and does not help in any calculations at all for me

Am I actually being thick?

I have an eye watering fixed rate and check daily to see if I should pay the £100 exit fee to move to something cheaper, it would be helpful if I had a clue what the upcoming prices are likely to be

 

[pb21]

Octopus proudly tell us their profits, small as they are, go back into expanding their business, which is billing services. they dont produce power. investment is needed in new storage technology and infrastucture.

I don't believe that is true re. Octopus. As I understand they do invest in renewable energy development, and out looking to increase this, particularly onshore windfarms, although maybe not now...