Liz's energy subsidy.

[spread-tee]

It's the market that needs reform not just throwing money at the energy companies, what have they done to deserve it??

Desp

[Oldgreybeard]

There are some indications of possible market reform. Today's announcement mentioned that the electricity price was to be decoupled from the gas price and that there is to be a review of regulation. Reading between the lines I'd guess that Ofgem will be found to be unfit for purpose and that there will be a token shakeup. I doubt much will change re: Ofgem's successor being in the pocket of industry, but it will look as if something's being done.

[spread-tee]

A nods as good as a wink......

https://leftfootforward.org/2022/09/wif ... 14dabf978e

quelle surprise

Desp

[Swwils]

Apparently existing fixed tarrifs will also benefit from the reduction.

[nowty]

Apparently existing fixed tarrifs will also benefit from the reduction.

Although we don't know the full details, I believe this will ONLY apply if an existing fixed tariff is above the capped rate.

[spread-tee]

Here's an example of what seems to be a good idea??

https://www.theguardian.com/business/20 ... -long-term

I particularly like this

"A modest amount of energy could be provided universally at a regulated price that avoided sudden shocks for basic essential use. The costs of this would need to be smoothed over time. Net costs could be funded by top-slicing energy profits in upstream markets. It could either be provided by current suppliers or by others through a competitive franchising process."

and this

"Ditch the standing charge
The regressive standing charge could be replaced so that fixed costs (for example, to pay for networks) are instead recovered proportionately through unit rates."

Funny how people have these good ideas after they have left their positions of power

Desp

[Bugtownboy]

Does seem a very sensible, customer/user focused option. Far too common sense though.

Funny how people have these good ideas after they have left their positions of power

Desp

Bit like Jeremy ?unt, one time Secretary for Health and Social Care, now the biggest critic of what HMG is doing (or not doing) with the Health Service.

Correcting his actions would be a good start.

[Swwils]

Apparently existing fixed tarrifs will also benefit from the reduction.

Although we don't know the full details, I believe this will ONLY apply if an existing fixed tariff is above the capped rate.

I would think they will let suppliers decide this, otherwise how is it implimentable. I'm on a 9.65p gas, 33p elec fix from march 2022 and I would be gutted to "lose out" on my prudence, especially if it's raked back over the next 20 years.

[Mart]

and this

"Ditch the standing charge
The regressive standing charge could be replaced so that fixed costs (for example, to pay for networks) are instead recovered proportionately through unit rates."

Funny how people have these good ideas after they have left their positions of power

Desp

Folk may remember me arguing for this for about 10yrs. In fact I've argued it so long, that I've just realised I can't use the term I've used before, the 'petrol forecourt' price, as we are moving to BEV's. So will have to change it to the supermarket checkout price (SCP), which includes all costs of doing business.

The benefits of the SCP for energy is that it rewards low users more, and penalises high users more. An average user would see no change in the total bill. This in turn encourages energy efficiency and increases the savings on a more efficient TV, or loft insulation. It also improves the economics of demand side generation, as higher unit cost imports are being displaced.

There is a counter argument that the energy provider has the costs of maintaining your connection. But the counter counter argument is that all the supermarkets near me have capital and operational costs, in the hope of getting some of my business too.

I appreciate it's a more complicated discussion, but when half of my water bill is the standing charge, for example, then further reductions benefit me less and less, so encouragement and momentum for greater effort is (to some degree) lost.

[Side issue / rant - but it annoys me how much the standing charges vary. The cost per connection must be standard*, yet different companies, and different deals have different standing charges, it's almost like 'they' are trying to confuse you.

*I mean standard for any given location, whilst geographic regions do have differing costs.

[nowty]

Apparently existing fixed tarrifs will also benefit from the reduction.

Although we don't know the full details, I believe this will ONLY apply if an existing fixed tariff is above the capped rate.

I would think they will let suppliers decide this, otherwise how is it implimentable. I'm on a 9.65p gas, 33p elec fix from march 2022 and I would be gutted to "lose out" on my prudence, especially if it's raked back over the next 20 years.

You make a fair point there, especially if you have been paying over the odds for the past 6 months. I think it's going to be a tough call with some winners and losers as there are always unintended consequences with these emergency measures.