Martin Lewis’ round-up of the new £2,500 energy price cap – here’s what’s happening

Heres the key point for people who have taken expensive fixes.

  1. Those on fixes, can either stay on them, or can leave and switch to the new state subsidised tariffs with no exit penalties. (UPDATE: 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.)
  2. There will be legislation similar to apply in Northern Ireland."
 
what this means for me is that my average £60 a month energy bill has now turned into a £205 a month energy tax

the energy companies will charge the absolute maximum that they can, stating that theyre losing money on the heavy users, so the lower users are forced to subsidise them, while the companies make record breaking profits quarter after quarter

if the government want to do something, then force the per unit price cap DOWN to a point where the companies still make money, but not billions every month off the backs of those who can least afford it
 
"if the government want to do something, then force the per unit price cap DOWN to a point where the companies still make money, but not billions every month off the backs of those who can least afford it"

Digidude, Ofgem are accountable to Parliament and the Price Cap is supposedly set accordingly "The price cap, as set out in LAW , puts a maximum per unit price on energy that reflects what it costs to buy energy on the wholesale market and supply it to our homes. It also sets a strict and modest profit rate that suppliers can make from domestic energy sales."
Note the part "It also sets a strict and modest profit rate that suppliers can make from domestic energy sales" I would suggest that is NOT what is occurring and therefore the High Price Cap is therefore ILLEGAL !!!!
It is because of this I believe that NOBODY should pay the new increased prices, but to Continue Paying ONLY The Same Amount That They Are Paying NOW !!!
 
The part I dislike the most is what they have done to the standing charge. Why have they increased that at all?
Many pensioners and others on fixed incomes will need to ration their use of energy. They have tried to ensure that there is little reprieve for doing so by charging us twice the old charge for not using energy.
Makes me believe that it is something they envisaged so they took steps to ensure that any attempts to conserve energy wouldn't go unpunished.
 
Why pay all that money for a meter to clock on how much you use a year for their service ?

And bill you x (hole of the uk making billions a year from that and called it standing charge

Should be able to pay for the meter probs only tops £500 retail price 😂
 
chookey said:
The part I dislike the most is what they have done to the standing charge. Why have they increased that at all?
Many pensioners and others on fixed incomes will need to ration their use of energy. They have tried to ensure that there is little reprieve for doing so by charging us twice the old charge for not using energy.
Makes me believe that it is something they envisaged so they took steps to ensure that any attempts to conserve energy wouldn't go unpunished.
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biggest con going, my standing charges literally doubled at the end of feb , finally got a gas bill off eon for the first time since may even though i've got smart meters ,and bearing in mind i've never had the heating on i used £0.89p yet ended up with a £34.42 gas bill .
 

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D 8 RCS said:
"if the government want to do something, then force the per unit price cap DOWN to a point where the companies still make money, but not billions every month off the backs of those who can least afford it"

Digidude, Ofgem are accountable to Parliament and the Price Cap is supposedly set accordingly "The price cap, as set out in LAW , puts a maximum per unit price on energy that reflects what it costs to buy energy on the wholesale market and supply it to our homes. It also sets a strict and modest profit rate that suppliers can make from domestic energy sales."
Note the part "It also sets a strict and modest profit rate that suppliers can make from domestic energy sales" I would suggest that is NOT what is occurring and therefore the High Price Cap is therefore ILLEGAL !!!!
It is because of this I believe that NOBODY should pay the new increased prices, but to Continue Paying ONLY The Same Amount That They Are Paying NOW !!!
Click to expand...
If only i could continue paying what i'm paying now 🤣. I've been on a fixed dual contract with Scottish Power for almost 2 years now which ends at end of December. Currently have a DD for £110 a month, dread to think what they going to attempt to increase it to come January.

It's all very well the government stepping in to put a cap, but the taxpayer are going to be footed with this bill and as already mentioned the greedy utility companies are going to milk as much money as they can out of us still. If we aren't paying it in our current bills, we're still going to pay it eventually.
 
spud1966 said:
Why pay all that money for a meter to clock on how much you use a year for their service ?

And bill you x (hole of the uk making billions a year from that and called it standing charge

Should be able to pay for the meter probs only tops £500 retail price 😂
Click to expand...
I think we are also paying for them to maintain the grid Spud. Just imagine if we had to pay standing charges to our preferred Supermarket to cover maintenance costs, or to your local garage in order for them to continue repairing or servicing your car.

It's absolutely ridiculous in this day and age and especially so in the current climate. The standing charge should have been re-calculated and put into the unit charge. That way there would be incentive to reduce energy use and give the worse off a fair chance of actually having some heat this winter.
 
darren221980 said:
If only i could continue paying what i'm paying now 🤣. I've been on a fixed dual contract with Scottish Power for almost 2 years now which ends at end of December. Currently have a DD for £110 a month, dread to think what they going to attempt to increase it to come January.

It's all very well the government stepping in to put a cap, but the taxpayer are going to be footed with this bill and as already mentioned the greedy utility companies are going to milk as much money as they can out of us still. If we aren't paying it in our current bills, we're still going to pay it eventually.
Click to expand...

But that is the thing Darren, how the Price Cap is set is laid out in Law.
But OFGEM are not abiding by that Law, it is supposed to set a Strict and Modest Profit Rate for the Suppliers.
The obscene Profits they are making cannot in any way or form be called "Strict and Modest Profit"

It needs to be shouted from the roof-tops that it is not just the Energy Suppliers that are the Problem, but also OFGEM............. who are the one's that are supposed to be suppling the solution, but in actual fact are in part responsible for the cause of the high prices.
Somebody in Government should be highlighting this anomaly, but the likelihood is that they have huge Shares Portfolios that include shares in these Energy Companies and so are receiving a generous income from it.
 
As @digidude said it is an Energy tax and Truss is trying to make herself look good buy freezing the cap at £2500🙄.
It stinks ffs and there is nothing people can do about other than rigging their supply if they know a man who can.
Does anybody think that if Putin wasn’t at war with Ukraine these energy prices would have risen so sharply or they are just using it as an excuse.
 
avid said:
As @digidude said it is an Energy tax and Truss is trying to make herself look good buy freezing the cap at £2500🙄.
It stinks ffs and there is nothing people can do about other than rigging their supply if they know a man who can.
Does anybody think that if Putin wasn’t at war with Ukraine these energy prices would have risen so sharply or they are just using it as an excuse.
Click to expand...
The war started Feb 24, ofgem already set apr cap on Feb 3 Price cap to increase by £693 from April
.Prices rose rapidly as we came out of COVID lockdowns around the world and demand grew and it's prices are an auction after all.
In 2020 oil sold as a negative at one time, as no one was requiring much
A historic drop occurred on April 20, when the price of West Texas Intermediate crude dropped by almost 300%, trading at around negative $37 per barrel.
The crash in demand that followed the spread of Covid-19, along with a price war between oil giants Saudi Arabia and Russia in early March spurred the move into negative prices.

Meaning that anyone trying to sell a barrel would have to pay a buyer $37 as it's all done on futures market.
 
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