[meldrewreborn]

The announcement was wide ranging and sets out the concept of price Caps limited to £2,500 per annum for the average user. alternative arrangements for those using heating oil, communal heating, holiday homes and Northern Ireland. Detail was obviously missing and those on fixed tariffs now not covered.

Further measures are the removal of green levies from electricity bills, and the setting up of tasks forces to identify methods of making the UK energy independent and even a net exporter of energy by 2040. The operation of the electricity wholesale market is to be reviewed and price regulation improved.

Obviously there is the issue of who pays and the notion of a windfall tax. I think the principal is clear and the excess profits should be taxed. I think the problem is that companies can change their headquarter base to other countries. Taxing companies too heavily will only encourage them to move elsewhere and then the UK tax take would be zero. I think its called shooting oneself in the foot.

[meldrewreborn]

@Boo

With all suppliers, if you took the fix very recently you can revert to the variable tariff under cooling off provisions.

With Eon next in particular there are no exit fees so you can go onto variable rates at any time. I would expect once the suppliers have had time to react that they will contact all of those on fixed rates with details of their options.

I signed up to an Eon fix at Apr 22 price cap rates for a year. Those rates will be below the new rates so I'll stick with them.

[meldrewreborn]

Before we all fall over ourselves with joy, recognise that this £2,500 level is an increase of circa 30% over the April 2022 (current) price cap.

I think we'll be looking at 36p per unit for electricity and 9.5p for gas. While a fix for 2 years is undoubtedly welcome it will still be incredibly tough for many of us.

[Boo]

@meldrewrebornI have alredy fixed my tarrif at £4000 a year, I am waiting a responce from EON.

[click66]

Waiting for a response as well. Queued on WhatsApp, Twitter and email for a few days now. No response on phone. I get they're probably rammed, but it's frankly ridiculous this can't just be sorted through the website.
I switched to fixed 12 days ago and as I understand there's no cooling off period or exit fees I would have to worry about but there seems to be no 100% consensus on that, so just getting some assurance I'll be switched to the subsidised tarrif without charge would be nice so I can rest easy!

[silverfox55]

I would expect once the suppliers have had time to react that they will contact all of those on fixed rates with details of their options.

Knowing Eon, they will contact us in about a years time !!! And with the speed of doing things it will take anothet year!!!

[meldrewreborn]

@silverfox55

Its also possible the price guarantee will replace the contracted fixed prices if they're lower. We can only hope a sensible clean option is chosen.

[Mailman]

Originally Posted by meldrewreborn

Before we all fall over ourselves with joy, recognise that this £2,500 level is an increase of circa 30% over the April 2022 (current) price cap.

I think we'll be looking at 36p per unit for electricity and 9.5p for gas. While a fix for 2 years is undoubtedly welcome it will still be incredibly tough for many of us.

I ran similar numbers that you have posted 35p/kWh E and 10p/kWh G from Oct 1st. Until then I am on an old fix (v7) with prices 19.35p and 3.75p so for those like me the increase (inc the £400) will take me from a current 12 month bill amount of £880 to something like £1430. Had nothing happened and I went on to v18 on 1st October I'd be looking at £2350, so roughly speaking I will be better off next year by nearly £1000 (inc the £400). These are with usage numbers of 2500kWh(E) and 6800kWh(G).

It is welcome for my particular household for sure.

[Mailman]

One thing that many of us will need further details on are how fixed deals already taken, or fixed deals with a start date on/after 1st October and going to be affected by the EPG (Energy Price Guarantee). So for example those who have fixed for deals now (or starting on/after 1st October) at a rate higher than the original Ofgem caps for October 2022 should be protected by the EPG and pay (if an 'average user') circa £2500. There are those who were fortunate (like myself) to grab v18 starting (in my case) 1st October to commence after my current v7 fix. If, under the EPG, the unit price reduction (approx 30% on the rates seemingly) is applied to both gas and electricity rates in the same way, there is a possibility that for some tariffs, the new applied rates might take myself under the £2500 figure calculation. What we don't yet know for sure is whether the £2500 amount is both the floor and the cap for all tariffs (except for those fixed which are currently under the £2500 (calculated average amount). In a nutshell I am waiting for more detail rather than pulling the plug on v18 to start 1st October (and moving to SVT). Hope this makes sense.

[JoeSoap]

@Mailman

I got v17 but it’s already started. No idea what to do so will wait to see what else transpires.