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Electricity price predictions

MattEngineer · 2021-12-03T18:39:26Z

When the energy cap comes up for renewal I think it will rise to 26.5p per unit, any thoughts of the collective?

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Electricity, Tariffs, Monitoring, Electrics & Providers

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Derek M

(@derek-m)

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Joined: 5 years ago

Posts: 4425

27/05/2022 7:06 pm

Posted by: @prjohn

Posted by: @derek-m

Posted by: @prjohn

Posted by: @derek-m

This money will have to come from higher taxes on us, our children or even our grandchildren in the future, or by government borrowing which could make the cost even higher.

This is a common myth that government investment and/or spending comes from taxes. The government owns the BoE and is also the currency owner and issuer thus cannot be indebted to itself. This website is not the place to debate this but it is sufficient to say that the government can raise the money if it so wishes.

That's great news prjohn, so the Government can abolish all the taxes since they are surplus to requirements. That will solve the energy crises and cost of living crises at a single stroke.

No, I didn't say that. If you really want to know how government spending works there is a considerable amount of information on the internet. Also, how did the government raise the funding for Covid spending? It wasn't through borrowing.

Whilst I obviously don't know the inner working of Government like you, the way I interpret your statement 'This is a common myth that government investment and/or spending comes from taxes.' would mean that they collect the tax money but don't use it for Government investment or spending.

If that is the case then what do they do with the tax revenue? Do they put it in their Swiss bank accounts.

Please explain where the money comes from that the Government does spend.

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Transparent

(@transparent)

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Posts: 3183

27/05/2022 7:10 pm

Posted by: @derek-m

Please explain where the money comes from

From the European Money-tree Fund. 😋

(It doesn't come across quite as well in print. Try saying it out loud)

Save energy... recycle electrons!

👍

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Jeff

(@jeff)

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Joined: 5 years ago

Posts: 602

27/05/2022 7:56 pm

Borrowing, including QE where the Bank of England buys debt. The Bank may begin selling some of the debt in 2022/2023

https://www.bbc.co.uk/news/business-50504151

Taxes

https://ifs.org.uk/taxlab/key-questions/where-does-government-get-its-money#:~:text=The%20government%20raises%20around%20%C2%A3,contributions%20(NICs)%20and%20VAT

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Derek M

(@derek-m)

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Posts: 4425

27/05/2022 9:32 pm

@jeff

So it would appear that the Government does use money raised from taxes, quite often along with money also borrowed, to fund its spending plans. Of course if it spends more money, then it will require more tax income and/or borrowing to balance the books. Silly me, I thought that it all came from the European Money Tree, but since we are no longer in that club then I hope someone stole a cutting so that we can grow our own.

Back to the real world. Use less energy. What you do use do so in the most efficient manner. Spend your £400 on improved insulation if you can afford to do so.

👍

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Jeff

(@jeff)

Noble Member Member

Joined: 5 years ago

Posts: 602

27/05/2022 9:52 pm

Posted by: @derek-m

@jeff

So it would appear that the Government does use money raised from taxes, quite often along with money also borrowed, to fund its spending plans. Of course if it spends more money, then it will require more tax income and/or borrowing to balance the books. Silly me, I thought that it all came from the European Money Tree, but since we are no longer in that club then I hope someone stole a cutting so that we can grow our own.

Back to the real world. Use less energy. What you do use do so in the most efficient manner. Spend your £400 on improved insulation if you can afford to do so.

QE is perhaps the least understood where the government issues debt and the Bank of England buys some of that debt.

https://www.bankofengland.co.uk/monetary-policy/quantitative-easing

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Derek M

(@derek-m)

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Joined: 5 years ago

Posts: 4425

27/05/2022 9:58 pm

@jeff

QE, Is that not another way to describe 'live now, pay later', or better still, get someone else to pay later.

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prjohn

(@prjohn)

Estimable Member Member

Joined: 5 years ago

Posts: 125

06/06/2022 9:45 pm

Where in the UK has the most expensive and cheapest energy bills?

A comparethemarket survey: https://www.comparethemarket.com/energy/content/the-energy-index/

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Transparent

(@transparent)

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06/06/2022 10:12 pm

That link seems to be data from autumn '21 @prjohn Have you seen any costs of electricity by region since the April increase?

Save energy... recycle electrons!

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prjohn

(@prjohn)

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Posts: 125

06/06/2022 10:40 pm

From their web site. All data is sourced from comparethemarket.com from customer Energy Quotes between June 2020 to June 2021.

I assume this years data wouldn't be out until much later. As they have done this once it might be out earlier. We could extrapolate and make an educate guess that the rankings wouldn't really Change, as everyone was facing the same increases.

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