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I think it's unlikely that we will see prices return to levels prior to September 2021 within the next few years.
However, there's no way that the prices should have increased so much after taking into account the support scheme.
Previously electricity commodity prices were around £50-60/MW and have been capped at £211/MW. Commodity costs made up less than half of electricity bills before the crisis (and the non-commodity elements have not risen significantly), so the maximum increase they should see after the cap is probably a 3 x increase.
[edit] I would guess, based on the amount quoted, that they may have gone onto a new tariff in August (when prices reached a peak of nearly £800/MW), but they will not be paying that rate from October onwards after the support scheme kicks in.
[2nd edit] There is a 'maximum discount' applied to the price cap (which means the government will only bring down bills by £345/MW, so if they got a tariff based on £800/MW, it will only be reduced to £455/MW), but even then, that doesn't equate to a tenfold increase. It probably means a 3-5 times increase.
[Post edited 28 Oct 2022 17:40]
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Electric And Gas on 17:50 - Oct 28 with 2770 views
I think it's unlikely that we will see prices return to levels prior to September 2021 within the next few years.
However, there's no way that the prices should have increased so much after taking into account the support scheme.
Previously electricity commodity prices were around £50-60/MW and have been capped at £211/MW. Commodity costs made up less than half of electricity bills before the crisis (and the non-commodity elements have not risen significantly), so the maximum increase they should see after the cap is probably a 3 x increase.
[edit] I would guess, based on the amount quoted, that they may have gone onto a new tariff in August (when prices reached a peak of nearly £800/MW), but they will not be paying that rate from October onwards after the support scheme kicks in.
[2nd edit] There is a 'maximum discount' applied to the price cap (which means the government will only bring down bills by £345/MW, so if they got a tariff based on £800/MW, it will only be reduced to £455/MW), but even then, that doesn't equate to a tenfold increase. It probably means a 3-5 times increase.
[Post edited 28 Oct 2022 17:40]
There has been quite a bit of profiteering here, otherwise where would the energy companies excess profits come from ?
Have consumers used more energy...... when the prices have risen so dramatically, I think not
Those extra profits should be returned to consumers via a windfall tax, or similar.
This is the problem, when like Brexit, you relinquish control - privatisation.
Odd how those naughty foreigners now own and run so much of our utilities when those foreign companies are state owned.
As with failing water companies, trains and even energy we are paying the price of short term greed, over long term investment see Norwegian Sovereign fund v UK tax cuts.
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Electric And Gas on 17:52 - Oct 28 with 2781 views
Electric And Gas on 17:52 - Oct 28 by factual_blue
If it's any help, some friends have just had solar panels installed.
Their electricity meter is now going backwards.
[Post edited 28 Oct 2022 17:55]
This highlights the flaws of the government being in the pockets of oil and gas
"Shell’s third-quarter profits have more than doubled to $9.5bn (£8.2bn) and add up to a whopping $30bn so far this year. Most of the additional profit is not made by sudden extra investment or effort. The cost of producing oil and gas has not changed much, but the selling price has."
"Motorists have been paying record prices at petrol stations, many controlled by oil companies. A study by the Competition and Markets Authority indicated that an extra 24p a litre profit may have been made. That profit is not captured by the UK windfall tax."
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Electric And Gas on 19:17 - Oct 28 with 2648 views
Nope. Only a percentage of oil price reduction was passed on (about 50%) when prices fell earlier this year and with electricity and gas it’ll be the same.
These foreign owned companies exist to make profits for shareholders. They are capped in what they can charge in home countries like France (e.g. French company EDF), so the U.K. will have to pay the bill.
If people don’t like it, tell Sid. After utilities were flogged off in the 80s, we are reaping the reward.
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Electric And Gas on 19:29 - Oct 28 with 2626 views
The business support will prove to be negligible. The proof will be in the October bills of course. However a very complicated process has been conducted to mystify what's actually going to be discounted. My hunch is by November the media will be all over this and when you consider the VAT gains since September 21 the government are actually under writing F**k all. Loads of businesses will NOT survive this.
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Electric And Gas on 19:34 - Oct 28 with 2619 views
I can’t see it and bet the energy companies don’t want it to either with the hefty profits they are currently making, it’s utterly shameful. They’ll just make it so those prices are normalised over time. Same with the petrol prices, they seem to be creeping back up and no one is battering an eyelid now, just accepting it. Honestly, I think it’s profiteering at it’s finest and a bloody disgrace!
Electric And Gas on 19:29 - Oct 28 by peterleeblue
The business support will prove to be negligible. The proof will be in the October bills of course. However a very complicated process has been conducted to mystify what's actually going to be discounted. My hunch is by November the media will be all over this and when you consider the VAT gains since September 21 the government are actually under writing F**k all. Loads of businesses will NOT survive this.
It's not negligible. It's going to reduce my organisation's energy costs for the year from £40m to £25m, with the unit rates we were going to be paying from October to March roughly halving.
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Electric And Gas on 22:36 - Oct 28 with 2267 views
Electric And Gas on 19:29 - Oct 28 by peterleeblue
The business support will prove to be negligible. The proof will be in the October bills of course. However a very complicated process has been conducted to mystify what's actually going to be discounted. My hunch is by November the media will be all over this and when you consider the VAT gains since September 21 the government are actually under writing F**k all. Loads of businesses will NOT survive this.
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