Gas & Electricity

[M18CTID]

It's just a delaying tactic unfortunately and one that means we'll be paying a lot of cash for a lot longer period of time. A gamble that prices will be cheaper in the next few years. What happens if it isn't should be the question, is the debt written off? do we have to pay double the price for years to come? this only seems to protect the utility companies rather than the consumers and that's why the directors of these companies all want this in. I'd prefer to protect the consumers first then the utility companies. If I had the option I'd want to pay for what I use straight away not on credit that I can't see or control

I get your point mate and you’re right that the uncertainty with high prices could go on for years but as things stand is there a viable alternative solution that protects consumers first and foremost and isn’t going to cost the taxpayer in the long run? I honestly can’t think of one and the reality is that if the current price cap isn’t frozen then millions will have to choose between eating and keeping warm, and thousands of companies are going to go bust. Our economy would capitulate overnight. Subsidising our energy bills to get us through this winter and possibly next winter kicks the can down the road in terms of us no doubt picking up the tab through taxation over time but not doing something so drastic will result in something much worse.

 

[M18CTID]

The company I work for has a fixed deal which runs out in a few months.

Current standing charge 35p a day
Current kWh charge 16p

Proposed standing charge £20 a day (£7,300 a year without using any energy)
Proposed kWh charge £1.05

A lot of businesses are going to go to the wall in this.

Seeing a lot of similar price increases for businesses on here and elsewhere. It seems a 6 or 7 fold increase for businesses once their current fixed rate deal cones to an end is the norm. Apparently the new measures coming in will see help for businesses too but I’m not sure how much help they’ll get and whether it will be enough.

 

[Gabriel]

 

[BerkshireBlue]

I get your point mate and you’re right that the uncertainty with high prices could go on for years but as things stand is there a viable alternative solution that protects consumers first and foremost and isn’t going to cost the taxpayer in the long run? I honestly can’t think of one and the reality is that if the current price cap isn’t frozen then millions will have to choose between eating and keeping warm, and thousands of companies are going to go bust. Our economy would capitulate overnight. Subsidising our energy bills to get us through this winter and possibly next winter kicks the can down the road in terms of us no doubt picking up the tab through taxation over time but not doing something so drastic will result in something much worse.

Cancel HS2 and give the £100billion saved to every household £4k. There's one for starters. Which would you rather have no electric bills for a year or a 20 minute faster train to London? There's loads of things that can be done they just need to sort it out

 

[Uncle Wally One Ball]

Cancel HS2 and give the £100billion saved to every household £4k. There's one for starters. Which would you rather have no electric bills for a year or a 20 minute faster train to London? There's loads of things that can be done they just need to sort it out

Cancel Brexit. Whats the divorce bill for that costing?

 

[jacko74]

I’ve never understood why the UK hasn’t ever gone down this route as it has the highest tidal range in all of Europe - I’d read that is has the potential to supply up to 12% of the uks energy needs and yet as far as I am aware there are none.

I'm actually quite surprised tidal is that low, I would have thought it could be considerably higher, and it is of course an absolute guaranteed, predictable and constant source of power unlike wind and sun.

 

[malg]

Nice videos online about how to bypass the electric meter. You're fucked if you have a smart meter though.

Makes you wonder why the companies were pushing smart meters on everyone.....

 

[Saddleworth2]

My understanding of how the wholesale price of electricity is determined is this:

At the moment, energy in the UK is traded on the wholesale market under 'marginal costing' which in the UK means one National price for electricity based on the price of the most costly generator that feeds the national grid. Invariably, this means that the cost of producing gas generated electricity dictates the wholesale price of electricity. So whilst renewable electricity might generate say 25%- 30% of the UK needs (and is multiple times cheaper than gas generated), nuclear another % (ditto), as soon as gas generated electricity is required on the grid, that dictates the price.

Now surely, given the massive brains at play in this government there is a way of unpicking that to ensure a true, more average cost of generation is charged. If that takes time then the model described above must be creating excess profit in those companies that generate electricity that could be levied as a windfall tax and used to mitigate things until they can sort out their pricing. Then the goal must be to get the UK to 100% self sufficiency utilising renewables and nuclear as quickly as we possible can.

 

[Saddleworth2]

I found this.

For anyone interested in facts around energy UK its an easy read.

North Sea energy: The UK’s valuable national asset

The UK sees its North Sea energy industry for expertise, capital and infrastructure to ensure orderly supplies during the energy transition.

www.gisreportsonline.com

 

[blueinsa]

My understanding of how the wholesale price of electricity is determined is this:

At the moment, energy in the UK is traded on the wholesale market under 'marginal costing' which in the UK means one National price for electricity based on the price of the most costly generator that feeds the national grid. Invariably, this means that the cost of producing gas generated electricity dictates the wholesale price of electricity. So whilst renewable electricity might generate say 25%- 30% of the UK needs (and is multiple times cheaper than gas generated), nuclear another % (ditto), as soon as gas generated electricity is required on the grid, that dictates the price.

Now surely, given the massive brains at play in this government there is a way of unpicking that to ensure a true, more average cost of generation is charged. If that takes time then the model described above must be creating excess profit in those companies that generate electricity that could be levied as a windfall tax and used to mitigate things until they can sort out their pricing. Then the goal must be to get the UK to 100% self sufficiency utilising renewables and nuclear as quickly as we possible can.

Panaroma on catch up explains very clearly and in detail the scam we are being subjected to mate.

OFGEM is not fit for purpose. Any announcement this week to help us all with bills, although welcome, will be useless unless a total reform of the sector is also announced.