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Energy Prices


MuckleMoo

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4 minutes ago, HEY_SIDNEY said:

No mate 

still under discussion as a lot of the finer details as well. 
Stuff like if you went on a fixed what happens regarding exit fee (I know ML has posted but it’s still up for discussion) 

energy UK are currently in a meeting regarding it all and we(employees of energy companies) will be updated tomorrow morning. 

They probably won't be enforced because PR, but if you sign a fixed rate contract with an exit fee clearly stated then I don't see why you should expect to be released from that contract without penalty simply because the price changes.

Fixed Rate Tariffs exist to provide certainty on future expenditure in an uncertain market (see also: fixed price mortgages anyone takes out now with an eye on the bank interest rate); they aren't Best Odds Guaranteed.

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46 minutes ago, Todd_is_God said:

They probably won't be enforced because PR, but if you sign a fixed rate contract with an exit fee clearly stated then I don't see why you should expect to be released from that contract without penalty simply because the price changes.

Fixed Rate Tariffs exist to provide certainty on future expenditure in an uncertain market (see also: fixed price mortgages anyone takes out now with an eye on the bank interest rate); they aren't Best Odds Guaranteed.

I agree with the notion that you shouldn't be able to escape the exit fees.  The size of the exit fees are now absolutely piss taking and for that reason, I don't think they should be paid.

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There was something somewhere about any fixed you entered into will take the same “discount” as the svt reduction

Discount and reduction from Octobers suggested prices. 

thats tricky as systems are pre set, would be difficult to place into billing systems and get billing accurate.
 

Logistically difficult to cover all potential problems 

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34 minutes ago, strichener said:

I agree with the notion that you shouldn't be able to escape the exit fees.  The size of the exit fees are now absolutely piss taking and for that reason, I don't think they should be paid.

The fixed rate tariffs (That are higher) will simply be reduced to the new Artificial Cap.   What becomes interesting if there is a VAT cut in the coming weeks.

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2 hours ago, superbigal said:

The fixed rate tariffs (That are higher) will simply be reduced to the new Artificial Cap.   What becomes interesting if there is a VAT cut in the coming weeks.

Yes but some folks will have fixed for a year expecting further increases.  Those people will undoubtedly want off their fix.

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36 minutes ago, strichener said:

Yes but some folks will have fixed for a year expecting further increases.  Those people will undoubtedly want off their fix.

And they can - they always could - by paying the early exit fee they agreed on when signing up.

Those who fixed did so at a level they gambled would be lower than the cap, taking advantage of what they thought were energy companies underestimating the rises. The gamble was always that you would lose out if Russian gas later re-entered the market and drove future caps down.

Similarly, with mortgages, there will be people right now re-mortgaging early, paying early settlement fees in the hope that they can ultimately save money in the long run if (when) interest rates climb. If they don't, or drop earlier than expected, they too will lose out.

Them's the breaks. Fixing anything is not (and never has been) a no-lose gamble.

 

Edited by Todd_is_God
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And they can - they always could - by paying the early exit fee they agreed on when signing up.
Those who fixed did so at a level they gambled would be lower than the cap, taking advantage of what they thought were energy companies underestimating the rises. The gamble was always that you would lose out if Russian gas later re-entered the market and drove future caps down.
Similarly, with mortgages, there will be people right now re-mortgaging early, paying early settlement fees in the hope that they can ultimately save money in the long run if (when) interest rates climb. If they don't, or drop earlier than expected, they too will lose out.
Them's the breaks. Fixing anything is not (and never has been) a no-lose gamble.
 
It is though, a little different in the case where the lower energy price than your fix comes directly from the govt, ultimately to be paid back by us, and is for everyone.

It is also, btw, absolutely fucking ludicrous that this is not, at least currently, being funded in full or part by windfall tax.

As if having enormous profits clipped slightly would deter investment. Absolute shite excuse.
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1 hour ago, Bairnardo said:

It is though, a little different in the case where the lower energy price than your fix comes directly from the govt, ultimately to be paid back by us, and is for everyone.

Perhaps, but anyone who fixed did so with information about future cap estimates available to them, and should have at least considered the possibility of intervention based on them. It's easy in hindsight to say it was obvious, but I don't think you will find many on this thread lately who didn't consider just that. If they didn't either research future cap projections because their sole source of information was Martin Lewis' "Should You Fix?" page then that's a life lesson.

It will probably be moot anyway because of, like I said PR reasons, but in the unlikely event they insist on the exit fee then people really can't moan.

Edited by Todd_is_God
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£130billion is not for the generators, who are making they suggested profits etc (some of which are retailers - shell being main one) … the money is for the retail businesses who are running at a loss every day when buying energy at wholesale cost and selling it for less. In the two years it is projected that it will cost £130B however wholesale costs may come down as well after October 2023(doubtful but can) 

What I’ve learned today is that the price will still rise and n October but it’s a discounted rate that consumers will receive on the energy bill. I’m effect next October the price cap will read at around £6k but the government will compensate the difference to the £2500 it’s frozen at. 
Heck of a mine field for energy companies and their billing system. (Not that people care about that part) 

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2 hours ago, HEY_SIDNEY said:

£130billion is not for the generators, who are making they suggested profits etc (some of which are retailers - shell being main one) … the money is for the retail businesses who are running at a loss every day when buying energy at wholesale cost and selling it for less. In the two years it is projected that it will cost £130B however wholesale costs may come down as well after October 2023(doubtful but can) 

What I’ve learned today is that the price will still rise and n October but it’s a discounted rate that consumers will receive on the energy bill. I’m effect next October the price cap will read at around £6k but the government will compensate the difference to the £2500 it’s frozen at. 
Heck of a mine field for energy companies and their billing system. (Not that people care about that part) 

Is this one example of the many successes of privatisation/deregulation?

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25 minutes ago, oaksoft said:

.....and as soon as I did that they got in touch and immediately agreed to change it back to what it has been all summer.

So that's good news.

Surprised you didn't tell them to beat it and leave it on pay what you owe.

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