Energy Cap

[motorbiking]

What am I missing with this Energy cap thing?

https://www.bbc.co.uk/news/live/uk-politics-62828637

It looks like household bills will be capped at £2,500 which will cost the tax payer/future tax payer. North of £100Bn.

Firstly where is the incentive to save energy if its going to be capped at 2.5k.
100bn is enough to put Solar PV on about 20M homes - surely it would be better to subsidise installs?

 

[Mottie]

I don’t think the cap actually works like that where the maximum they can charge would be a set amount regardless of fuel used.

What is the energy price cap?

Discover more about the energy price cap, brought in by the regulator Ofgem, with this in-depth guide from Martin Lewis's MoneySavingExpert

www.moneysavingexpert.com

 

[Dork Lard]

What am I missing with this Energy cap thing?

https://www.bbc.co.uk/news/live/uk-politics-62828637

It looks like household bills will be capped at £2,500 which will cost the tax payer/future tax payer. North of £100Bn.

Firstly where is the incentive to save energy if its going to be capped at 2.5k.
100bn is enough to put Solar PV on about 20M homes - surely it would be better to subsidise installs?

Are you still confused about the price cap?

Which isn't unusual in the hard of thinking . . . .

There is no cap on what you will pay, if you consume more you will always pay for what you consume. The incentive to save energy for most folk will still stem from the need to reduce the final cost & not from the altruistic need to save the dolphins.

 

[ajohn]

It's a typical bill cap based on typical kw usage so if you use less than is typical you will pay less. : you could use more at the same payment rate.
The fact that all figures that have been quoted are based on typical usage seems to have been forgoten. If the gov has forgotten they need to be out of power immediately.

 

[ajohn]

What will the cap be = not announced yet but should be today. It's a little early for the house to be in session. 2k has been rumoured. Duration not clear yet either. Some think through this and next winter.

 

[IT Minion]

What am I missing with this Energy cap thing?

https://www.bbc.co.uk/news/live/uk-politics-62828637

It looks like household bills will be capped at £2,500 which will cost the tax payer/future tax payer. North of £100Bn.

Firstly where is the incentive to save energy if its going to be capped at 2.5k.
100bn is enough to put Solar PV on about 20M homes - surely it would be better to subsidise installs?

Others have pointed out that it's (probably, they haven't announced it yet after all) cap on the standing charges and a cap on the per unit rates.

The solar aspect would make sense and actually fix some of the problem by reducing the need for gas, but that would be funding green stuff and that is against Conservative party policies. It'd also take ages to roll out as there aren't the number of fitters needed or supply laying around in the UK. The help on bills is needed now.

 

[Notch7]

Truss wont tax energy producers for the excess profits

she dishonestly tried to claim tax stops growth -but these are excess profits on top of their normal operating profit, for which theyve done nothing to generate

but then Truss worked for Shell and Truss is a puppet for the ERG who are bankrolled by fossil fuels as are the Tory party.


the old adage: follow the money

 

[Notch7]

I hope the Tory govt will do something to stop the energy cap being tagged to gas, the most expensive energy

why is is not tagged to solar or wind?

 

[IT Minion]

I hope the Tory govt will do something to stop the energy cap being tagged to gas, the most expensive energy

why is is not tagged to solar or wind?

Then gas plants would shut.

 

[ajohn]

100bn is enough to put Solar PV on about 20M homes - surely it would be better to subsidise installs?

Truss correctly is anti heavy use of solar as it will use up productive land. It's attractive as can be installed quickly. A big problem really - it only produces power for a limited period.

Solar on roofs is a different area but has the same time limitation. If some one has the cash the payback time may be better due to interest rates being lower than inflation. I also wonder what happens when every house in the country dumps power into the grid.

 

[Notch7]

Then gas plants would shut.

then govt could nationalise them

 

[ajohn]

cap being tagged to gas

A lot of our electricity come from gas. It's cleaner than oil. The current problem is people being able to pay their power bills. Nothing can be done quickly other than subsidy. The time scales needed for any other route are also worrying.

 

[ajohn]

then govt could nationalise them

Not the producers. No point in nationalising your supplier - they have to buy the stuff at the going rate.

 

[Dork Lard]

Shortly after the current Mrs. Lard moved into Ivory Towers, I caught her in the kitchen with the back door wide open & the boiler nearly exploding in trying to keep up with the heat loss.

She was having one of her 'hot flush' moments & instead of simply turning down the thermostat she decided instead to heat the entire atmosphere . . . At my expense.

She won't do that again. I don't know & I cannot imagine anyone I know ever doing that again.

I want to so dearly, to sit down & discuss the energy saving tactics with anyone who thinks the people who will be most affected by the current enormous cost of energy can do to reduce their energy bills.

This winter, a few people who belong to a very large group of people are going to die because a very small group of people think it's OK to charge enormous amounts of £money for energy.

 

[ajohn]

cap on the standing charges

The standing charge is to give the companies who look after the distribution an income. They are split off from the "power suppliers" the companies you pay via your energy bills.

Other than what the distribution people are paid and raw materials used etc there should be no need for a hefty cost increase.They just transport the stuff - it's cost doesn't matter to them. Gas leaks usually get fixed unlike water.