@transparent, thanks for the colorful and helpful background on Kwasi and Rees-Mogg. Makes a lot of sense now.

I’ve been disappointed to read that Truss has lifted the ban on fracking and approved drilling at new oil and gas sites, and this works hand in hand with her reluctance to impose a windfall tax. So much for the green agenda and renewables, and I assume associated targets will be pushed back. I find the insistence on fracking most disturbing due to the additional environmental damage it’ll cause.

@editor

I suspect Liz Truss may only be PM for a couple of years or so, but she can still do even more damage to the countries finances. I am rapidly loosing confidence in our present batch of politicians.

Potentially extending CfD to replace other contracts

THEGUARDIAN.COM "https://www.theguardian.com/business/2022/sep/10/british-gas-cap-profits-cut-energy-bills-centrica-electricity"

British Gas owner plans to cap profits to cut energy bills | Centrica | The Guardian

Exclusive: Centrica chief tells the Guardian he is keen for it to sign up to new contracts with government on electricity generation

@jeff I think moving more supply to CfD was one of the points Liz Truss made in her speech. Sounds interesting.

Posted by: @editor

I’ve been out all day so not had a chance to look at the new plan. Does the new cap cap the per kWh tariff if you’re on flexible tariff? This week the news channels have been throwing around arbitrary average house expenditure numbers which I’ve not found particularly helpful.

The good news is that users on fixed rate tariffs will be able to switch to a variable rate. Now I just need to confirm whether that’s the current rate we’re on.

You can see some unit rates and standing charges for the cap on the updated government website

GOV.UK "https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022"

[Withdrawn] Energy Price Guarantee from 1 July 2023 - GOV.UK

I'm disappointed to see than none of the Government domestic energy subsidy is being put towards the daily standing charge. That disproportionately affects households in energy poverty. As you lower your energy usage, the level of standing charge becomes more significant.

34.0p/kWh for electricity. This is still a big increase in the current price.  Coming into winter this will put even more people into poverty. Giving billions to electric companies when they are making billions in profits really questions who the government is supporting especially when the subsidy is going to be repaid by the user over the coming years. Temperatures have already dropped to 6 deg in august and HP use already increasing from last year, this bodes badly for the coming winter.

Given I am on a fixed tariff, I am very interested in how the £0.17/kwh reduction is going to be implemented. My rate is 7.5p for 4hrs, does that mean it might go to zero or even negative? Very interesting to see how this plays out. Given how small time of use tariffs are to the general population I feel like it might fall through the cracks and just go down to zero. If the full reduction is put in I might be on

00:30 - 04:30 : £0.00 / kwh

04:30 - 00:30 : 0.2284 / kwh

Massive win all round. If it goes negative I will be laughing

@batalto I think the reduction is for those on fixed rates that are dearer than the new standard rate. So if you are already cheaper that wouldn't change downwards but will go upwards when your fixed deal ends.

Posted by: @prjohn

@batalto I think the reduction is for those on fixed rates that are dearer than the new standard rate. So if you are already cheaper that wouldn't change downwards but will go upwards when your fixed deal ends.

 

That is  in line with what EDF is saying

If you're on one of our fixed tariffs there is nothing you need to do right now. Customers on fixed tariffs will benefit from similar discounts subject to a floor. We're still working out how this is going to work and will update the information here. We'll update you when we know more. Thanks for your patience at this time.

Those on a tariff where a typical consumption comes in at less than £2500 won't see any change.

Assuming EDF are correct 

@batalto I'm pretty sure your tariff won't go to zero (or negative)

a. Energy Suppliers have to create claims for the subsidies they administer on behalf of HMG. There's no way that a zero figure will be accepted by the system.

b. negative pricing causes an energy black hole:

• Your Smart Meter becomes an Event Horizon through which an infinite stream of electrons are emitted at the speed of light.
• Copper cables supplying your house change from solid to plasma, capable of carrying a TerraWatt
• Long-failed experimental fusion-reactors suddenly start working, compounding the problem as they have nowhere to send their energy
• World peace breaks out, depriving candidates for Miss World of their only aspiration in life
• Russian gas gets propelled back through the pipes and into the ground
• Call centre operators are made redundant because there's no one complaining about their energy bill
• Heat-pumps work in reverse, chilling houses to minus 40 and starting a mini Ice Age at Woking
• Cryogenic machines bring back their dead, restoring to us scores of useless millionaires who we'd hoped we'd seen the last of
• The second Law of Thermodynamics no longer holds true, resulting in all students failing A-level physics
• Climate Change activists turn up on your doorstep with placards demanding that you "Use more power" and "Turn the b*** central heating on!"
• Lord Lucan is found and a cabinet reshuffle appoints him Sec of State for Energy
• Miss World arrives on your doorstep complaining that you made her look stupid on live TV
• Contributors to energy-related forums get wildly carried away with ever-increasing conjecture....