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Energy bills to rise - how much is yours going up by?

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DelayRepay

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I haven't looked at it in detail but I think he also misses the extra payments to cover customer credit balances of failed energy companies. This is around £68 per account and is, I understand, the reason for the big increase in standing charges. Hopefully this will be removed in October being a one-off cost, but the costs for ongoing support to Bulb have to be raised from somewhere.
I was going to say, this is the problem. Effectively we are paying for the Government's failure to regulate the energy market properly over the last decade - customer credit balances should have been ringfenced and held separately from the firm's own funds, in the same way as financial services firms have to segregate client balances from their own funds. Unsustainable businesses would have gone bust sooner, but with a smaller impact financially. Perhaps their should have also been a levy on suppliers' profits to build up a fund to protect consumers from failing firms.

Like many people I have been looking to reduce energy usage - I've turned the heating down and reduced the hours, I'm using a lower temperature on the washing machine and trying to take shorter showers. My house is well insulated, and I will be looking at how I can improve it further over the summer. But in reality, given the high standing charges, these measures won't make a noticeable difference to the bills.
 
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Baxenden Bank

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I was going to say, this is the problem. Effectively we are paying for the Government's failure to regulate the energy market properly over the last decade - customer credit balances should have been ringfenced and held separately from the firm's own funds, in the same way as financial services firms have to segregate client balances from their own funds. Unsustainable businesses would have gone bust sooner, but with a smaller impact financially. Perhaps their should have also been a levy on suppliers' profits to build up a fund to protect consumers from failing firms.

Like many people I have been looking to reduce energy usage - I've turned the heating down and reduced the hours, I'm using a lower temperature on the washing machine and trying to take shorter showers. My house is well insulated, and I will be looking at how I can improve it further over the summer. But in reality, given the high standing charges, these measures won't make a noticeable difference to the bills.
A regulator that failed to regulate. Gosh, really. :o

Not as though we've had that previously with banking, or pensions and others.

Must be a nice earner to be paid to regulate then sit on your hands. Wringing them as necessary when the stuff hits the fan, benefit of hindsight, lessons learned, won't happen again etc.

The immediate past boss of OFGEM was on Money Box (Radio 4, Saturday 1200) a while back. His knowledge (cough) was that people who were transferred under the Supplier of Last Resort arrangements would carry on on their existing tariff. The presenter sort of suggested that that didn't sound right as he understood it but, as a live interview, couldn't call him out fully.
 

Howardh

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If I used the same amount of gas and electricity as I did in 2020; using the prices for April onwards (ie the next increase) my bill would be
gas; £1752 + £99 s/c
electric; £620 + £154
VAT £131
Total £2756 or £229/month

However I've totally cut down and my usage now is under half. Only use two radiators at a time, on timers, with thermostats and the temp set at 20c (day) 22c (evening).
Being retired I'm out a lot more, and when out everything is "off".
If I'm cold indoors I can wrap a blanket round with a hot water bottle and feel snug for an hour.
used to laugh at my old man in his dressing down and bob hat all day...that's me now!

Feel sorry for families that have kids and need more rooms warmed up - I suppose I'm lucky that way. Hoping - even when a further increase comes in October - I can get away with no more than £150/month.

Bet those prices won't come down as fast as they went up when the situation's clearer.
 

jon0844

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A regulator that failed to regulate. Gosh, really. :o

Not as though we've had that previously with banking, or pensions and others.

Must be a nice earner to be paid to regulate then sit on your hands. Wringing them as necessary when the stuff hits the fan, benefit of hindsight, lessons learned, won't happen again etc.

The immediate past boss of OFGEM was on Money Box (Radio 4, Saturday 1200) a while back. His knowledge (cough) was that people who were transferred under the Supplier of Last Resort arrangements would carry on on their existing tariff. The presenter sort of suggested that that didn't sound right as he understood it but, as a live interview, couldn't call him out fully.
They purposely allowed these companies to spend customer money as working capital to supposedly allow them invest (our money) and grow, which means anyone could set up a company with very little risk. Make loads of profit - great, nice bonus this year. Lose money, and just fold it and move on.

A total joke. I'm glad the small company I was with didn't spend my credit balance. I'm less glad I have to pay for the others (although I'm angry at the energy companies and regulator, not the victims who - like me - naively assumed the credit was ring fenced).
 

najaB

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There is a change.org petition calling for energy companies to supply basic energy needs for free, paid for out of a windfall tax on energy companies.

Somewhat similar idea to UBI.

 

swt_passenger

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There is a change.org petition calling for energy companies to supply basic energy needs for free, paid for out of a windfall tax on energy companies.

Somewhat similar idea to UBI.

If cooking heating and lighting were free, what else is left? TV? Washing machines and tumble driers?
 

najaB

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If cooking heating and lighting were free, what else is left? TV? Washing machines and tumble driers?
I suspect that if this was to become policy, it would be a nominal amount of power allocated to those activities. So enough to cook one meal a day and heat the average home to, say 19°C. If you want to go warmer than that or cook more than that, then you pay.
 

reddragon

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I think we as a country need to change our basic views on energy and that is all of us. We cannot blame everyone else, demand cuts or whatever, we have to act. Some can do that alone, many need support to do this.

The problem we have is relying on a volatile finite resource from some dodgy countries for our energy supplies and the fact that we are running out of our own easy supplies on the doorstep. Fossil fuels are getting increasingly expensive to extract and are causing terminal climate change issues. I hear lets frack / extract more etc but the reality, lenders no longer see them as a safe bet to invest in. Why invest in something that takes years to pay back, that now has lower returns & might be a stranded asset in a few years.

I started a journey many years ago to end my reliance on such as system, gradually weening myself off energy & fossil fuels. I have been laughed at, ridiculed and been told I'm some kind of swampy / fool. Of course now with minimal energy bills and none of these worries, it is me that has the last laugh.

Lets start with home energy efficiency. Whilst many pillared insulate rebellion for sitting on motorways, insulted them and attacked them the reality is that they were 100% right. The Government have bowed to developer profits and not implemented the higher energy efficiency homes & have not rolled out any successful programmes to improve our housing stock, which is the worst insulated in Europe. Its the least well off that suffer the most and those in jams that complained!

Many years ago, I could not afford the heating bills for my home when oil prices went up. I only had a small oil tank and winter oil prices were very high whenever it got cold. My house was EPC band G. So I got some rolls of insulation & as I could afford increased my loft from 4" to 10". Took me 2 winters to do it buying when rolls were on a special offer, £4 each I can remember. Now if only that grant system could return! I then bought some TRVs, drained my CH system & fitted them. A couple leaked as I didn't have all the skills / tools needed but they got fixed in the end. I wanted a timed thermostat control system but could not afford or know how to do it at the time. Then I got a loan & did the windows, house down to EPC band E, bills down a lot. A warm house in winter.

Next I did all sorts of draught proofing, filled gaps in the cavity insulation, changed lightbulbs as they became cheaper, raided a DIY store going bust for cheap LEDs.

These are simple things anyone can do with a bit of help, learning on youtube etc.

In 2011 after 3 winters in a row with snow, extortionate oil prices, a freezing cold house relying on scavenged logs, old timber & rubbish to keep warm I used the RHI scheme to install a pellet stove & solar thermal. It gave me 10 years of free central heating. The bills for pellets are beginning to bite now though! Many pellets come from Russia / Ukraine and that's hit UK production prices too, like with oil / gas. I will find a way. Even at current prices, my heating will cost me £60 per month. My house now has underfloor insulation, more loft insulation, wall insulation & bits so is EPC band B. Underfloor heating is a lot easier to install than I thought!

In 2016 after high fuel bills, maintenance & repair costs for my old diesel, I switched to an EV. I did the maths, created a spreadsheet and it cost me less per month than my previously 4 cars did. OK range was crap at the time, but resale values were not and now I'm on my third EV which is the cheapest per month to own and is the best car I've ever owned, with great range. It costs me under 1p per mile to drive, no tax, mot, maintenance etc.

In 2019 I saved up for a solar PV system, but due to cut grants the return was low, so I added a solar diverter to charge my car & to heat my water to get a 10% return on an asset with a 25+ year life. Electric bills cut 80%. I am lucky to still be on a long fixed tariff, but not for much longer, next winter will be a shock for me as I only pay £90 a year on electric at the moment, so I bought a share in a wind turbine that fixes my leccy rate for 25+ years. Magic!

What I'm saying is, there's a lot you can do for not a lot of cost all by yourselves. Ignore the myths & lies promoted by the fossil industry to stop the transition to renewables because they are a damn sight cheaper and its from our own land, not imported or subject to prices spikes.

I have made little change to my lifestyle, have not turned the thermostat down a degree, shortened showers or travelled less but I have saved stacks of ££££

So instead of signing petitions for cheap energy, change for the better, support crazy people laying down on the M25 because that is how people will be able to afford to heat their house or flat by using a lot less energy!
 

skyhigh

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In which case, it doesn't give you a fixed rate for 25 years - you still have to find a tariff from a supplier, which might go up or down (I imagine you're aware of this so it's more for anyone else who is reading this - I have also purchased a share).
 

reddragon

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In which case, it doesn't give you a fixed rate for 25 years - you still have to find a tariff from a supplier, which might go up or down (I imagine you're aware of this so it's more for anyone else who is reading this - I have also purchased a share).
Yes I read all the details.

Of course if wholesale rates are low, your supply tariff is low & your return is low. The return on Ripple was 13 years at 2020 rates on a 25 year asset.
If of course wholesale rates are high, your supply tariff is high & your return is high. The current return on Ripple is now under 3 years

Overall, this results in the overall near as damn it equivalent to a fixed rate for 25 years because of this, which is I assume why you as I have invested. Only transmission charges & billing charges can blow this, which can be seen with some of the standing charges doubling but they happen whatever route you take bar going off grid!

Seems a few of us on here have gone Ripple!
 

najaB

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So instead of signing petitions for cheap energy, change for the better, support crazy people laying down on the M25 because that is how people will be able to afford to heat their house or flat by using a lot less energy!
There's no reason that you can't do both.
 

reddragon

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There's no reason that you can't do both.
The best way to achieve cheap energy is not by cutting gas, petrol, electric, bills.

Grants & speeding up change achieves all without long term subsidies.

We will all have to change to heat pumps, but unless the housing stock is insulated they cost a bomb to run. A better option is what they call District heating, where a single deep borehole is used to provide ground sourced heat to multiple properties. Avoids all those separate grants & hassle as you only buy the heat. London Underground have been doing this extracting heat from tunnels to heat homes. Water companies have been doing this extracting heat from sewage tanks to heat homes. Not hard if managed & done properly!
 

WelshBluebird

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These are simple things anyone can do with a bit of help, learning on youtube etc.
Much of what you discuss aren't exactly options for everyone though.
As a tenant, you aren't going to be able to change cavity / loft insulation etc, and sadly as energy costs aren't a worry of landlords, most landlords won't care to bother either.
 

reddragon

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Much of what you discuss aren't exactly options for everyone though.
As a tenant, you aren't going to be able to change cavity / loft insulation etc, and sadly as energy costs aren't a worry of landlords, most landlords won't care to bother either.
There was to be a law setting minimum EPC values for rented properties. Belatedly an EPC E now exists but is barely enforced and the roll out of proper energy efficiency measures has been pushed back to 2025.


That should be brought forwards as there is no genuine reason it couldn't be done. Landlords even have grants they can use!
 

skyhigh

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Yes I read all the details.

Of course if wholesale rates are low, your supply tariff is low & your return is low. The return on Ripple was 13 years at 2020 rates on a 25 year asset.
If of course wholesale rates are high, your supply tariff is high & your return is high. The current return on Ripple is now under 3 years

Overall, this results in the overall near as damn it equivalent to a fixed rate for 25 years because of this, which is I assume why you as I have invested. Only transmission charges & billing charges can blow this, which can be seen with some of the standing charges doubling but they happen whatever route you take bar going off grid!

Seems a few of us on here have gone Ripple!
Bit in bold - yes and no. I've only gone for enough to cover roughly 50% of my consumption, so for me it'll offer a hedge against price rises but not give me as much benefit as it will you. I have fairly high usage including an EV, but solar panels aren't really practical for me right now (small roof, fairly shaded, and with a growing family we are planning to move elsewhere in the next few years so I don't think we'd get enough benefit) so I thought this was a decent idea. If prices stay where they are I'll have no complaints at all!

Are you in the facebook group?
 

najaB

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The best way to achieve cheap energy is not by cutting gas, petrol, electric, bills.

Grants & speeding up change achieves all without long term subsidies.
I agree. However, high energy bills are affecting people now. The poorest in society need help with their bills now, even if we start today and make our best efforts it is going to take years to improve the entire housing stock.
 

AndrewE

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Yes I read all the details.

Of course if wholesale rates are low, your supply tariff is low & your return is low. The return on Ripple was 13 years at 2020 rates on a 25 year asset.
If of course wholesale rates are high, your supply tariff is high & your return is high. The current return on Ripple is now under 3 years

Overall, this results in the overall near as damn it equivalent to a fixed rate for 25 years because of this, which is I assume why you as I have invested. Only transmission charges & billing charges can blow this, which can be seen with some of the standing charges doubling but they happen whatever route you take bar going off grid!

Seems a few of us on here have gone Ripple!
Slight correction:
You are at the mercy of your supplier for your rates, whatever the wholesale price is. However Ripple will be (are) "selling" through very few suppliers, starting with (ex-)Coop and Octopus who are pretty reputable and socially responsible.

The thing about the Ripple cooperative is that your "return" depends on the wholesale rate at which they sell (our) electricity to the grid, which varies through the day and the proportion of the turbine you funded. I think Octopus buy a certain baseload from the coop at a yearly agreed price, so the variation in our return will reflect the surplus left over, which is actually taken by Octopus at the prevailing spot market rates.

The return is not linked to your consumption (apart from initially limiting how much you can buy in) and you will still pay the grid charges etc on all the kWhr you use taken from the grid.
You get the cash difference between what your bit of the turbine brings in and the operating costs of it, returned to you as a rebate via your supplier.
I am getting a return from my share in the first one now (which shoud come through my bill rebate in a month or two) and have bought a bit more in #2, as have 2 family members and 2 friends.
The second windfarm is still open for investors (it has to be seen as an investment as we could get a year with no wind and hence no return!)
A
 

reddragon

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Bit in bold - yes and no. I've only gone for enough to cover roughly 50% of my consumption, so for me it'll offer a hedge against price rises but not give me as much benefit as it will you. I have fairly high usage including an EV, but solar panels aren't really practical for me right now (small roof, fairly shaded, and with a growing family we are planning to move elsewhere in the next few years so I don't think we'd get enough benefit) so I thought this was a decent idea. If prices stay where they are I'll have no complaints at all!

Are you in the facebook group?
I don't use facebook but do have an account to view things. Which group?

I agree. However, high energy bills are affecting people now. The poorest in society need help with their bills now, even if we start today and make our best efforts it is going to take years to improve the entire housing stock.
Sadly you can never fix things 'now'
 

najaB

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Sadly you can never fix things 'now'
Which is why we should be agitating for more help to the poorest today to keep them alive while we fix the systemic problems - e.g. insulation, heat pumps, more PV, etc.

There are a lot of people who may not survive next winter if the prices are as high as they are predicted to be.
 

reddragon

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'Ripple Energy Owners Group'
thanks

Which is why we should be agitating for more help to the poorest today to keep them alive while we fix the systemic problems - e.g. insulation, heat pumps, more PV, etc.

There are a lot of people who may not survive next winter if the prices are as high as they are predicted to be.
Whilst I 100% agree with you, I don't expect that to happen, Tories support businesses not people.

If anyone doubted who the Tories would support

UK rules out windfall tax on North Sea oil firms to help fund energy bills

 
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JamesT

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Whilst I 100% agree with you, I don't expect that to happen, Tories support businesses not people.

If anyone doubted who the Tories would support
We mostly don't have hypothecated taxation in the UK. Refusing to implement a windfall tax has no direct link to whether support is provided for domestic customers with high energy bills.
It's also fairly nonsensical from an economic point of view, prices are high because demand is currently outstripping supply. How is imposing a punitive tax on suppliers (who were making large losses a few years ago - https://www.ft.com/content/e67e4dac-ca76-11e5-a8ef-ea66e967dd44 ) going to incentivise them to increase production?
 

reddragon

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We mostly don't have hypothecated taxation in the UK. Refusing to implement a windfall tax has no direct link to whether support is provided for domestic customers with high energy bills.
It's also fairly nonsensical from an economic point of view, prices are high because demand is currently outstripping supply. How is imposing a punitive tax on suppliers (who were making large losses a few years ago - https://www.ft.com/content/e67e4dac-ca76-11e5-a8ef-ea66e967dd44 ) going to incentivise them to increase production?
Because we are in a subsidise them when they loose out / make the customers pay when they do well scenario!

You do realise that most of the worlds wealth is in energy, the 0.1% Oligarchs who hide their money in tax havens!
 

jon0844

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I agree. However, high energy bills are affecting people now. The poorest in society need help with their bills now, even if we start today and make our best efforts it is going to take years to improve the entire housing stock.

I have cut my usage to a point where there's little more I can cut. That means I have no way to avoid the price hikes, or the standing charge that now means paying a fair whack even if I turned the electricity off for an entire month. I think the standing charge has been ignored for too long, and even I didn't realise how much it varied around the UK - and wonder if it would be fairer to include it in the cost of energy itself (which obviously would rise a little) so that if you use very little energy in any given day, you really do save money - and it incentivises you to do so. Naturally, I know the industry wouldn't just add a fraction of a penny on to the Kwh charge and would actively seek to profit more (answer; better regulation).

On the heating side, I have also got smart TRVs can can limit heating to a single room with ease, manage the temperatures per room, and ensure it is off whenever we're out. Again, going forward there's not much more in the way of savings to make - bar turning off the heating entirely and just wearing multiple layers and a coat.

Whilst I 100% agree with you, I don't expect that to happen, Tories support businesses not people.

Without wishing to go political; of late the Tories support BIG businesses. They seem to care not one bit for the smaller to medium enterprises.
 

reddragon

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Without wishing to go political; of late the Tories support BIG businesses. They seem to care not one bit for the smaller to medium enterprises.
We are simply stating facts, its nothing to do with politics.

The energy sector has received massive subsidies in the North Sea, Nuclear, Coal, gas and to much lesser degree renewables. If they make windfall profits, that should be taxed as such to help the poorest in society who cannot change their situation by any means.
 

Baxenden Bank

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Whilst I 100% agree with you, I don't expect that to happen, Tories support businesses not people.

When significant numbers of people cut their spending back by significant amounts, in order to afford eye-wateringly high energy prices, then businesses of all sizes will notice. They will start laying people off and the unemployment rate will rise. Tax income declines, benefit spend increases. Hopefully the businesses will understand why their customers have disappeared (they are obviously facing high energy bills themselves) and make noises in the appropriate places. Mr Sunak may be apparently indifferent to the peasants problems but the red-wall Conservative MP's won't be. How many of them will ever see an £85,000 salary again in their lives if they get kicked out at the next election?
 

Kite159

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We are simply stating facts, its nothing to do with politics.

The energy sector has received massive subsidies in the North Sea, Nuclear, Coal, gas and to much lesser degree renewables. If they make windfall profits, that should be taxed as such to help the poorest in society who cannot change their situation by any means.

And how will that help out those who earn just enough to push them above any limits in which to claim benefits? The energy companies will just increase costs to cover for the "windfall" tax meaning those above that line suffer as they are not entitled to any freebie money from the government. With any investments made by those energy companies all but drying up, as they move their base of operations to a more friendly country. Oh look tax revenues have actually decreased, never mind.

As for the energy price hike from tomorrow, it's a double edged sword from that energy cap. Imagine what people will have been paying for the last 6 months if that cap didn't exist (i.e. what some businesses pay as they are not covered by the cap). The double edge sword is the massive price increases from tomorrow. Although I do seem to recall Labour not supporting the energy cap when it was first introduced a few years ago, it only coming into effect for the masses since the price rises from last year.

The worse hit will be those who are coming off fixed term deals signed up 12+ months ago.

Tories support businesses not people.
That furlough scheme introduced 2 years ago to help save jobs when Covid hit and the country shut down must have been so damaging to someone who dislikes the Tories, after-all unlike Labour when they bailed out the banks in 2008 (without caring about the people who were affected). Can't see Labour under Steptoe ever introducing something like the furlough scheme to help the workers keep their jobs when businesses were forced to closed, not without massive rules on who qualified for it.
 
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