^Next week Ofgem will announce the energy price cap rise^.

Our utility companies are not putting up their prices just to earn more money or to annoy us.

I agree that they're not doing it to annoy us, but they are doing it to earn more money. The price for electricity is based on the price for gas (because most of our power stations are gas fueled). What they are not accounting for is renewables, which make a significant contribution to our electricity grid. In a fairer world they would be pricing on an aggregate of gas and renewables costs.

I'd also be surprised if their standing charges aren't overpriced, too. Which you pay whether or not you actually use any electricity.

grandtanteJE65

Shinamae

Whitewavemark2

Sunday Telegraph saying it will rise to £6000 in April next year.

“They” can say what they want, I will not be paying any more than what I can actually afford and will bear whatever consequences this brings to my door… I think if you do pay what you can AFFORD that they cannot come down on you too heavily but time will tell…

How I wish this were true, but I do not believe it is.

Whatever utilitiy you use, you have to pay the actual cost of the number of units you use plus the various taxes and any other charges involved.

The only way you could possibly only pay what you actually can afford is by working out how many units of electriciy or heating you can afford and making sure that that is all you actually use.

With prices as they are, I am afraid that doing this will mean living in a stone cold house all winter, or alternatively, having heating on, but only one small electric lamp on at a time - no tv etc.

Our utility companies are not putting up their prices just to earn more money or to annoy us. They are having to pay more for the raw product they buy, plus more for turning it into the product they sell us. So if you only pay what you can afford, but are using more than that, you basically are defrauding the company.

This can never be legal, and if we all do it, will lead to a great many utility suppliers going bankrupt.

What you could do, is to try to negotiate an agreement with the supplier along the lines of your paying a flat rate to cover your minimum needs and paying usage over and above that in installments.

I have no idea whether they will agree to this kind of arrangement, but doing so would probably be in their interest as you are basically acknowleging that you owe them money that you are trying hard to pay off.

I think my way is more acceptable than people who are going to refuse to pay anything at all come first of October..

don't ask how but i managed to get a deal set in stone until december 23! i pay £250/month and my account for both stands at £13.50 at moment! but i am watching "the space"

henetha

I, and many others, are already in what they call "Fuel poverty* (more than ten percent of income going on fuel).
How much more can we take?
I find Liz Truss' plans very disturbing. It will do nothing for the really poor. At least Rishi Sunak seems to have a better understanding of what it's like, even if he hasn't ever experienced it.

If the price cap goes up to £5000 a year the majority of households will be in fuel poverty, completely unacceptable in the 21st century. Liz Truss’s claim that tax cuts will solve many of the current problems shows how out of touch these people are.

I agree that almost anyone could do better than this lot. Any government would have paid furlough money , perhaps a bit more fairly, and wouldn’t have handed lucrative contracts to cronies, supported liars and law breakers , voted to pour sewage on our beaches -I could go on.

Shinamae

Whitewavemark2

Sunday Telegraph saying it will rise to £6000 in April next year.

“They” can say what they want, I will not be paying any more than what I can actually afford and will bear whatever consequences this brings to my door… I think if you do pay what you can AFFORD that they cannot come down on you too heavily but time will tell…

How I wish this were true, but I do not believe it is.

Whatever utilitiy you use, you have to pay the actual cost of the number of units you use plus the various taxes and any other charges involved.

The only way you could possibly only pay what you actually can afford is by working out how many units of electriciy or heating you can afford and making sure that that is all you actually use.

With prices as they are, I am afraid that doing this will mean living in a stone cold house all winter, or alternatively, having heating on, but only one small electric lamp on at a time - no tv etc.

Our utility companies are not putting up their prices just to earn more money or to annoy us. They are having to pay more for the raw product they buy, plus more for turning it into the product they sell us. So if you only pay what you can afford, but are using more than that, you basically are defrauding the company.

This can never be legal, and if we all do it, will lead to a great many utility suppliers going bankrupt.

What you could do, is to try to negotiate an agreement with the supplier along the lines of your paying a flat rate to cover your minimum needs and paying usage over and above that in installments.

I have no idea whether they will agree to this kind of arrangement, but doing so would probably be in their interest as you are basically acknowleging that you owe them money that you are trying hard to pay off.

Truss is playing a game to get elected by the blue rinses. Once she gets in she will go for a few well publicised handouts and hope that will buy her the next General Election. After that she will be keeping the paupers down.

I thought wrongly about Ritchie Sunak. I thought he could be trusted but after listening to him on radio 2 today, blowing his own trumpet and being so big headed, I've completely changed my mind. I wouldn't trust him as far as I could throw him.

This idea that nothing can happen until we have a new PM in place is just rubbish. We do not have a presidential system and we should have a functioning government whatever is happening to the office of PM. It appears that they are not bothered about what is happening to the country, or perhaps they just don't have a clue what to do and are doing headless chicken impressions.

The people of this country are being thrown to the wolves. I am not sure who has the intellectual capacity to lead us out of this disaster - certainly none of the current self-centered lot.

So. To put the blame where its due...

The UK fuel market is more dependent on natural gas for its energy needs than, for example, the EU, and our storage capacity is not adequate. The EU has a large and interconnected energy market which makes it more stable than the UK's. Continental energy price rises have been up to 40% less than the UK's, even though at first sight they are more dependent on Russian gas.

Putin's invasion of the Ukraine has a peripheral impact, at best. Had we "rushed" a bit more to Net Zero we would not have been so reliant on natural gas and we would have had more flexibility.

Guess what? We've shot ourselves in the foot by not co-operating with the EU and by pretending there's no Global Warming crisis. You couldn't make it up. Not a lot of evidence of "bright sparks", not that I can see.

Plus a government which thinks it's more important shareholders to receive dividends .
What other countries have ( ,we aren't the only one to suffer from Putin, Covid etc), these sky high caps ?

I have a feeling we are all being softened up for a distinct improvement before the ordure hits the fan. Necessity is the mother of invention and many bright sparks are already working on this problem so it is likely something will turn up.

We must, however, put the blame where it is due. Putin's invasion of Ukraine and the Chinese Covid Lockdown causing a run on the world fuel market are responsible for most of this fuel chaos. The rush to Net Zero and the green agenda have made it much more difficult and more slow to respond to the crisis.

I keep hearing that they will protect the most vulnerable and, of course, they must be given help but with the size of these increases, this will impact all households. Most households will struggle, not just the most vulnerable!

Zoe, that's your opinion, but it isn't mine.
This government is despicable. Look at the number of Tory MPs who would not support an amendment about prevention of water companies pouring out sewage on beaches.Look at the number of Ministers who are out of their depth. Their government was initially based on lies about Brevxit. Promises were made which they knew couldn't be kept. ?during Covid contracts were handed out to mates and so on and so on.~Despicable is a good description.

I'm sure the energy companies could absorb some of the increased costs after all they are making vast profits

Rishi resigned as we know so just doing the hustings
He's still an MP. Is he MP-ing? Probably not.

do you seriously think the likes of starmer ,Rayner and co would do better!!! Goodness me yes. Larry the Cat would do better.

They were a “good “ government when handing out your furlough money . I've never thought they were a good government. I haven't ever thought they were a good government, because they are terrible.

Liz truss is still foreign Secretary and working as well as the hustings.Boris is also working on holiday too.
Rishi resigned as we know so just doing the hustings .
They are not a despicable government .do you seriously think the likes of starmer ,Rayner and co would do better!!!
They woukd let the unions ride rough shod over everything etc
They were a “good “ government when handing out your furlough money .You can’t have it all ways

JenniferEccles I agree it is still regarded to be the summer season. That though means different things to different areas of the UK. Yesterday I had a temperature of 16° and today it is 15°. Compared to the southern regions these temps are definitely autumnal and it's very tempting to turn the central heating on for a bit in the evening but of course the bill will rocket. Can't wait until the official autumn arrives!

vegansrock

What is the point of a price cap when it seems to change every 5 minutes?

It's a moveable price cap, vegansrock

ie no point at all!

JenniferEccles

Of course they are taking it seriously but nothing can be done until the new PM is in no. 10.
Financial help has already been announced, the situation is being monitored with the assurance that more help will be forthcoming.
We just have to be patient. It’s still summer.

Sorry JenniferEccles but 'being patient' is not what's needed. We still have a Prime Minister and if he cared he would be doing something but he doesn't give a toss.
We have a deputy Prime Minister too. And a whole shed load of ministers that could, if they so wanted, get together and act on our behalf.
Being patient isn't going to happen. People are unhappy and I predict there will be a great deal of action in one form or another.

MaggsMcG

I don't understand why they had to increase the standing charges so much. They are still providing the same service. Its the cost of producing the fuel that's risen not the service.

I asked that question some while ago. Apparently it’s because all the energy companies have had to cover the costs of all the ones who went bust and so are trying to recoup those costs via the daily standing charges.

I don't understand why they had to increase the standing charges so much. They are still providing the same service. Its the cost of producing the fuel that's risen not the service.

Sorry to so blunt, only a blind and deaf person (in a coma) would believe this government cares about anything other than filling their fat bellies (subsidised bars/canteens/expenses) and stuffing their over plump purses !! People are in for an awful winter, it’s no longer a choice as last winter between eating or heating, some will do neither. I worked for many years in the welfare sector and have met many mums/dads who feed and clothe their children first. Don’t believe all that’s printed in right wing rags about people on benefits and low incomes

What is the point of a price cap when it seems to change every 5 minutes?