QE, Is that not another way to describe 'live now, pay later', or better still, get someone else to pay later.
The scale of government borrowing would probably have happened anyway IMHO, it is just that the Bank of England bought the debt to stimulate the economy.
Was the scale of QE too high, did it go on too long? Was there a better option than increased borrowing and QE? There are cleverer people than me that could answer that...
@jeff The changes to market stabilisation will be detrimental to energy prices. This will make it dearer for new energy providers to start up as they will be paying more to energy companies for switchers (protects energy companies' profits). Thus less competition in prices. What Ofgem is trying to do is make the market more stable thus avoiding popup companies and at the same time protecting profits. The end result will be dearer prices for all. Ofgem is just putting a sticking plaster on a broken model.
@jeff The changes to market stabilisation will be detrimental to energy prices. This will make it dearer for new energy providers to start up as they will be paying more to energy companies for switchers (protects energy companies' profits). Thus less competition in prices. What Ofgem is trying to do is make the market more stable thus avoiding popup companies and at the same time protecting profits. The end result will be dearer prices for all. Ofgem is just putting a sticking plaster on a broken model.
In case it is helpful
It is only scheduled to be a short term measure. It expires currently on 30th September. Of course it may be extended or used again in the future.
It has not currently been triggered.
I can't personally image many new startups right now, a new start up is unlikely to have sufficient capital for hedging. I doubt it will be the mechanism defering startups between now and 30th September.
There aren't currently any fixed rates below the current price cap, there is little appetite from any supplier to take on new customers with or without the mechanism.
The current idea is that it is just a short term sticking plaster that isn't needed beyond a few months. Of course it may be needed longer or at a different time, particularly with the price cap expected to increase in October and January.
You can track the mechanism reviews on the ofgem site.
Interesting tariff. Fixed for cost of the actual gas, variable for the things Scottish Power can't control like government schemes and network costs. So both standing charge and unit cost can be updated every 3 months.
Even if you don't like the tariff it gives a example detailed breakdown of costs by region. Would be interesting to combine something like this with a local time of use tariff.
@jeff, we’re dreading this coming winter. We’re making plans to shift living in the southern portion of the house only, moving the TV to the living room where we have our fireplace so we have less spaces to heat. I was hopeful prices would adjust more favourably this summer, but it’s looking like more doom and gloom.
Given the data available on the projected price cap does anyone have a view on unit costs.
I think elec 36.5p per kw with a standing charge of 66p and gas 13p per kw and standing charge of 32p.
This gets close to Cornwall insights prediction based on average usage of 2900 elec kw and 12000 gas kw.
Thoughts?
I fear higher than the last cornwall update of £2980 for October and then increasing again in January.
Wholesale gas is higher since the last cornwall insight update so i think they will increase their estimate again to over £3000 in October and then increasing again in January unless ofgem intervene with some system changes.
These are the figures for a current ovo fixed rate offer which would be £3050.22 for our post code and typical consumption values.
Given the data available on the projected price cap does anyone have a view on unit costs.
I think elec 36.5p per kw with a standing charge of 66p and gas 13p per kw and standing charge of 32p.
This gets close to Cornwall insights prediction based on average usage of 2900 elec kw and 12000 gas kw.
Thoughts?
I fear higher than the last cornwall update of £2980 for October and then increasing again in January.
Wholesale gas is higher since the last cornwall insight update so i think they will increase their estimate again to over £3000 in October and then increasing again in January unless ofgem intervene with some system changes.
These are the figures for a current ovo fixed rate offer which would be £3050.22 for our post code and typical consumption values.
Gas unit £0.130000
Gas standing £0.275200
Electric unit £0.423300
Electric standing £0.444400
A gas boiler at 80%, including standing charge, would be beaten by an ASHP with a SCOP of 2.5 at these prices.
I think that's a good thing. The £3k bill to heat your home less so.
A lot of people have never even thought about gas heating bills because they've been so cheap. They will now.
