Energy support from April

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ThatFragranceGuy

Well-known member
Leaks have started

"As an extension to existing support, Sunak is also expected to provide cost of living payments worth £650 to those on means-tested benefits such as universal credit, along with payments of £150 to disability benefit recipients and £300 to pensioner households.

According to The Times, the plans will see some households ‘benefiting from all three payments’, but that all households will still see a ‘significant rise’ in average energy bills as the government increases the energy price guarantee from April – seeing the average climb from £2,500 to as much as £3,100.

The newspaper said Sunak and Hunt have also said they will prioritise the poorest, meaning middle-income and wealthier households will ‘shoulder the burden of tax rises’ in this year’s autumn statement, set to be announced on Thursday (18 November)."
 
locomansimon said:
Why are energy prices still rising? Other than profiteering!
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It's based on demand and there is demand. Lot of countries relied on russian oil and gas and that being picked up elsewhere means everyone is chasing a smaller pool of supplies, also countries have been filling their storage where possible.
 
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ThatFragranceGuy said:
It's based on demand and there is demand. Lot of countries relied on russian oil and gas and that being picked up elsewhere means everyone is chasing a smaller pool of supplies, also countries have been filling their storage where possible.
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But wholesale gas prices are tumbling, incidentally I work in a gas power station
 
Even though the price is capped till April but the government there is supposed to be another OFGEM price cap report due in January (I seem to recall these were moved to every 3 months from 6 monthly under the guise of ensuring the consumers benefit from reductions quicker). Will this still be published? Also it is worth noting a cap in April of £3,100 is lower than was predicted a month or so ago, so hopefully it will continue to fall.
 
locomansimon said:
But wholesale gas prices are tumbling, incidentally I work in a gas power station
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Dr Craig Lowrey, Principal Consultant at Cornwall Insight said:

“Many will question why, when there have been significant declines in the wholesale market since record highs were reached in late August, these are not reflected in the January – March 2023 levels. However, the structure of the cap methodology is such that suppliers are implicitly encouraged to purchase the demand requirements of their customer base in advance through hedging on the forward market, meaning that suppliers will typically not have been able to take advantage of the full extent of the declines seen over the last couple of months.

“As such, even though wholesale prices on the prompt market have fallen considerably in recent weeks – as have those for periods in 2023 and beyond – this is not reflected in the cap forecasts for Q123.

“Our forecasts for Q223 onwards however do illustrate the fall in the wholesale market, with these having dropped by around a quarter since the highs seen in August 2022. Despite these losses, the cap forecasts remain well above the annual sum of £2,500 per household under the EPG. With the enduring nature of support for household energy bills up for review in early 2023, the potential for volatility in energy bills will need to be addressed as part of any ongoing measures established.”
 
Pak_Doo_Ik said:
Even though the price is capped till April but the government there is supposed to be another OFGEM price cap report due in January (I seem to recall these were moved to every 3 months from 6 monthly under the guise of ensuring the consumers benefit from reductions quicker). Will this still be published? Also it is worth noting a cap in April of £3,100 is lower than was predicted a month or so ago, so hopefully it will continue to fall.
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I think you might be getting the OFGEM price cap and the government's Energy Price Guarantee confused.

It's the EPG which has been leaked as rising to £3,100 in April 2023 (from the current £2,500). The OFGEM price cap is still predicted to be above that figure (otherwise the EPG wouldn't be needed), although I gather the estimates have been falling recently.
 
Yeah so epg currently at 2500, our actual usage is estimated to be £2896, but paying £2496 with the £400 support. So this will be double whammy for many as we won't have actually paid the £2896, but that will probably rise to well over £3500 with no £400 to cushion it so about a £1000 increase but we are all in it together aren't we.
 
The data window which OFGEM uses to work out the next cap is about to close. I read that a couple of days ago. They will be shortly working out from that data what it means for the Jan to Mar cap which they should announce in the last week of this month. So luckily, we will all have our run up to xmas outlook smashed , as they invariably announce a new higher figure. Yes I know we won't be affected because of the guarantee but we will as it's all got to be paid for later on.
 
Boro_Interlinked said:
The data window which OFGEM uses to work out the next cap is about to close. I read that a couple of days ago. They will be shortly working out from that data what it means for the Jan to Mar cap which they should announce in the last week of this month. So luckily, we will all have our run up to xmas outlook smashed , as they invariably announce a new higher figure. Yes I know we won't be affected because of the guarantee but we will as it's all got to be paid for later on.
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The data is basically a public formula and Cornwall insights have usually been bang on. This was their update from start of November

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Lower middle income going to be hit yet again, earn too much for any help but stuck with huge mortgage rises, council tax rises, energy bills all whilst in jobs that are effectively getting wage cuts year on year all whilst benefits, pensions and min wage get increases in line with inflation. Knock on effect for everything else will be huge as well
 
All this whilst banning, fracking, onshore wind and solar. Sunak and Hunt need to be removed from office as soon as possible.
 
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