How can they justify the increase in your electricity bill !?

[Mike Johnson]

Wow hold on there, lots of assumptions with no substance I know its late but have you really had that much to drink.

So lets hear how you would reduce the costs to the consumer?

 

[brianmoooore]

@nicebutdim I think you're misinterpreting how the price cap works. It's not an absolute limit on your bill - It's the maximum that a defined 'average' user will pay. Use more than that average and you'll pay more.
If it was an absolute cap, I'd be more than happy with it, even at the rate it's likely to be in a few months time.

 

[nicebutdim]

@nicebutdim I think you're misinterpreting how the price cap works. It's not an absolute limit on your bill - It's the maximum that a defined 'average' user will pay. Use more than that average and you'll pay more.
If it was an absolute cap, I'd be more than happy with it, even at the rate it's likely to be in a few months time.

It seems my knowledge is lacking and I'd laboured under the misapprehension that it was an absolute limit.

I see that it applies only to standing charges and unit prices on default tariffs. When prices rise, energy companies must absorb those increases - sounds like a great way to bankrupt energy companies and reduce options for consumers,

 

[Mike Johnson]

It seems my knowledge is lacking and I'd laboured under the misapprehension that it was an absolute limit.

I see that it applies only to standing charges and unit prices on default tariffs. When prices rise, energy companies must absorb those increases - sounds like a great way to bankrupt energy companies and reduce options for consumers,

Then what is your solution to the increasing cost of energy consumption without increasing inflation?

 

[brianmoooore]

It was conceived as a way to keep a lid on the profits of the 'legacy' suppliers, who relied on the loyalty and ignorance of existing customers to be able to rip them off.

 

[Mike Johnson]

I think we all know what it is supposed to do, as I already said back in post 10, what it will achieve is just a top up to the Government coffers, it will make no difference to the consumer, the windfall is the Government's.

 

[Zerax]

I don't know how where you get your information, but where do you thing these myriad of smaller companies go there supplies from? They did not have an independent source.

The difference between small companies (that have nearly all gone now thanks the crazy price capping) and the big boys is "contribution towards overheads and profit" That's the accounting term for what's left over after all the direct costs. So... a well organised and efficient company should be able to minimise the overheads. That's where the difference comes from. Overheads such as billing, customer services and bad debt can be huge !! So have online billing only, one-hit CS and happy customers and you've saved a packet !!

 

[Zerax]

I'm always amazed at the number of homes that I go into that are heated to what I would call 'tropical' temperatures... and this is in spite of the recent energy price increases !

 

[brianmoooore]

I'm always amazed at the number of homes that I go into that are heated to what I would call 'tropical' temperatures... and this is in spite of the recent energy price increases !

My youngest daughter was home for a month just after Christmas, staying in one of my holiday cottages while she was 'between flats' in Exeter, where she lives.
Found every thermostat in the place turned up to max when she left. No wonder she always complained about the cold when she came into our house.

 

[Vortigern]

Bit of context here; My bill has gone from 131 p.m. to 266 p.m. for the last two months. In the same letter I am told that as of April costs are likely to rise a further 75% (ish?) Meaning I will be paying not far from 500 p.m. i.e. 6k per year. Over the last few years that means my usual bill of 3k per year is doubling, at least (Gulp!!) With four kids in the house the future is looking a bit bleak. FYI as I am retired I get 80 p.w. pension although I have worked all my life, don't ask! I know people who have never worked and/or been in prison half their life who get the full whack. Food costs are increasing, penury here I come!

 

[Diddy]

Some replies on this thread make me think that some people are missing their £50 referral fee for those "little" energy providers.
As for prices and what to do ? How do the rest of the world manage ? How about France our nearest neighbour ? 4% increase is it not ? Do they have lots of small energy providers ?
The market will sort it. That is just too funny, Them market has never been known to sort anything indefinitely as it always comes down to other factors. It's all good for most of us as we earn above averages wages (If you don't you need to have a stern word in your own ear) - But then we are a car crash away from destitution and then things like government intervention on prices or even nationalised energy (shudder) would be on all our want list.

 

[pc1966]

It's worth pointing out that, while mainland Europe obtains around 40% of its gas supply from Russia, the UK relies on Russia for approximately 3% of its gas.

Of course those countries that can no longer buy from Russia will drive up prices as the seek to secure alternative sources of supply. I'll keep my thoughts to myself about the recent trend of price increases for all forms of energy.

Yes, the issue is the UK uses a significant amount of gas both for home/business heating and for power, not that is specifically gets it from Russia, so the EU/international pricing aspect from Russia's latest actions hits us as well.

 

[Rockingit]

We're not dual fuel as heating is oil which is a mixed blessing as at least I get some say over when to top up the tank (2500L max!) except the barrel price is so high at the moment that heating oil is over 78p/L too. I'll be needing to order a top-up soon as we're getting low but can probably get away with the minimum order of 500L which will carry through to the summer (mostly just heating a tank of water a day) when hopefully things may have come down. Also, using a proper smart thermostat (Nest in our case) is paying for itself times over at the moment. Set to an eco friendly 19.5c whilst we're home and auto senses when we go out/travelling home via geo-fencing and internal sensors. Having said that, the wood pile has taken a hammering the last few weeks as the log burner is doing the work instead when we're all in of an evening and in the lounge.

Interestingly, we use very little electricity for what is fundamentally quite a large house but again, I spanked the wholesaler accounts a while back and changed every single lamp in the place to identical LED (all Osram and identical colour temps, it's a thing of beauty on the eyes) so predominantly it's just all the I.T. kind of stuff that's on or on standby 24/7. We're with Bulb and they sent the notice the other week that we're going from £111 to £125 as whilst the units have all gone up they're finally convinced that our useage after a year with them is consistently low.

 

[Mike Johnson]

I need a bigger heating allowance and so does my wife.

 

[brianmoooore]

78p for oil? Getting quotes of £1.10!

 

[Zerax]

How about France our nearest neighbour ? 4% increase is it not ?

That 4% figure was used by the media to make a political point. As I understand it, the pricing of energy in France is very different... I think you can choose between 'regulated' prices or market prices for starters. (Mike Johnson will probably know more) Because of this, energy in France has been alot more expensive than in the UK for a long time... So that 4% figure is not comparing apples with apples. Similarly the price of a baguette in France is government regulated.

Always question what you read in the press...

 

[Mike Johnson]

78p for oil? Getting quotes of £1.10!

Oil price this morning from the oil club is £1.007lt.

Electricity in France is a mine field, there are four tariffs, but always found the electricity to be slightly cheaper than in the UK, France has quite a few nuclear power stations which is the way we will have to go to keep up with demand, unless we want to cover the UK in solar panels and wind turbines, perish the thought.

 

[Diddy]

That 4% figure was used by the media to make a political point. As I understand it, the pricing of energy in France is very different... I think you can choose between 'regulated' prices or market prices for starters. (Mike Johnson will probably know more) Because of this, energy in France has been alot more expensive than in the UK for a long time... So that 4% figure is not comparing apples with apples. Similarly the price of a baguette in France is government regulated.

Always question what you read in the press...

What's political about the facts ? Electricity in France is cheaper now and has been for decades lol. They are state owned. Like you say always question what you read and hear even if it is what you want to hear just to confirm a preconception.

 

[7029 dave]

Makes me wonder if nationalization of the energy sector would be better, because we just cant keep taking these price rise's.

 

[Diddy]

Makes me wonder if nationalization of the energy sector would be better, because we just cant keep taking these price rise's.

Nah you don't want that mate, It's not as if any other country successfully uses state controlled energy and critical infrastructure. Much better in the hands of foreign governments. I mean what could possibly go wrong getting a French company in to build a nuclear power station on British soil lol, At one point we were inviting the Chinese on board too.
BTW this is a issue not confined to one party nor government. We are where we are due to many governments failure to plan for more than 5 years.