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Energy Prices


MuckleMoo

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I've just read a rather staggering forecast that claims that, with the right energy support package in place for businesses, inflation could drop to 2% by mid 2023.

By staggering I mean that, once again, Joe Public would have been correct in going against experts by stating that the only way to cool energy cost fuelled inflation was to reduce energy prices rather than endlessly increase interest rates.

I don't believe inflation will be as low as 2% come mid-summer, but I do believe that any price capping of business energy rates will significantly lower it in a way that continually raising interest rates by ever more base points (before Thursday it was strongly believed 75 would be added on the 15th) never would have.

They are now expected to raise them by just 50 points on the 22nd instead.

The downside of the tax cut part of the package is that interest rates will likely not then fall much in 2023 as a result.

Edited by Todd_is_God
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Finally what i believe is the true intention for those on Fixed Rates

There is a FLOOR so people expecting unit price deductions to take them way below the "Cap" are mistaken   Key point in BOLD

If you’re on a fixed rate tariff

For those customers on fixed rate tariffs, a ‘floor’ unit price for gas averaging at 10.3p/kWh and for electricity averaging at 34p/kWh for direct debit customers will also come into effect on 1 October 2022. We are introducing a floor because some people will have fixed at much lower prices some time ago, meaning their annual payments will already be below the £2,500 average set by the Energy Price Guarantee.
 
Unit price reductions of up to 17p/kWh for electricity and 4.2p/kWh for gas will apply to fixed tariff customers to bring their rates down to, but not below, the floor unit price. Customers on fixed rate tariffs that are already below the floor unit prices will continue to enjoy those low rates, but will not receive a further discount for the duration of their fixed term.
 
For the small number of consumers who fixed at a high rate exceeding the October Ofgem price cap of £3,549, they will receive the full discount of 17p for electricity and 4.2p for gas. However, given the higher starting point, their fixed rate tariff will still have a unit rate that is above the EPG rates. This will ensure that a fair price is paid by everyone.
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2 hours ago, superbigal said:

For the small number of consumers who fixed at a high rate exceeding the October Ofgem price cap of £3,549, they will receive the full discount of 17p for electricity and 4.2p for gas. However, given the higher starting point, their fixed rate tariff will still have a unit rate that is above the EPG rates. This will ensure that a fair price is paid by everyone.

Looking forward to seeing what that “small number” actually is.

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3 minutes ago, Gnash said:

Finally broke and put the heating on today as the temperature in the bedroom dropped to 15C.

Not quite what Mrs Gnash had in mind when she asked you to warm her up between the sheets.

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8 minutes ago, jagfox said:

Noticed yesterday my Smart Meter has jumped up. Usually wake up and it's 28p for electricity today it was already66o with only the fridge on overnight. 

Mine is exactly the same and considering the unit rate hasn't gone up I'm a bit stumped as to what is going on

 

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I have been experimenting this month and so far have not used the tumble dryer at all. Extra washing lines outside, so that any dry day I have stuff hanging out. Extra driers inside for rainy days. Hoping to last the month to see the effect.

Don't imagine this will work through the winter. But the dryer is, for me, the last thing to go on.

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5 hours ago, scottsdad said:

I have been experimenting this month and so far have not used the tumble dryer at all. Extra washing lines outside, so that any dry day I have stuff hanging out. Extra driers inside for rainy days. Hoping to last the month to see the effect.

Don't imagine this will work through the winter. But the dryer is, for me, the last thing to go on.

Never owned a tumble drier, it’s just me & the mrs, nae kids

never struggled without it

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3 hours ago, Lurkst said:

Just got an email from EON, my direct debit is coming DOWN by £20 from next month.

A tad perplexed but not unhappy. 

 

Martin Lewis explained this last night, the sweet spot is about £125 a month, if that is what you pay at the moment on average over the course of a year then the £400 will basically cancel out the raise and leave your DD untouched. If you currently pay less than that (which am guessing you do) then you will actually pay less when that £400 is taken off hence the DD reduction.

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7 hours ago, oaksoft said:

Shell have finally told us what our new tariff will be. Our new summer usage will go from about £85 to £110 and our new winter usage will go from £120 to about £180. Might be able to get down to £150 if we can genuinely avoid using central heating.

Your electricity rates are changing from 27.838p to 33.763p per kWh and your standing charge per day is changing from 49.64p to 50.66p.

 
 
 
 
 
 

Your gas rates are changing from 7.335p to 10.276p per kWh and your standing charge per day is changing from 27.22p to 28.48p.

That doesn't sound right to me with them raising your DD, from what Lewis said last night anyone currently paying less than £125 a month the £400 rebate should cover the raise, you are clearly less than that at £85/£120. I'd go looking for a broken down explanation of their new DD figures.

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3 hours ago, Le Tout P'ti FC said:

My direct debit has been reduced from £71 to £27. It has been a pleasant surprise to open that email.

(I live in a house, a very wee house in the country, watching afternoon repeats with an air source heat pump, and can't remember how to switch the heating on. In the country.)

I've just had email reducing mine from £98 to £48. 

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