The energy crisis

Originally Posted by Damien

It's lookling like £2,500 - paid for by borrowing and not a loan or a windfall tax

Originally Posted by Paul

Freezing energy it at the current level looks a little unrealistic.

Perhaps aim for middle ground, say £2500, a 25% rise is a lot better than 80%.

I vote for Paul to be the next Chancellor of the Exchequer

[joglynne]

Originally Posted by Hugh

I vote for Paul to be the next Chancellor of the Exchequer

Nah, it wouldn't work. People who make sense wouldn't be backed by the Fat Cats and you don't seem to able to get anywhere without being willing to grease a few palms.

[papa smurf]

We need to know the unit price per Kwh, then we can work out how much we can afford to use .

Originally Posted by joglynne

Nah, it wouldn't work. People who make sense wouldn't be backed by the Fat Cats and you don't seem to able to get anywhere without being willing to grease a few palms.

Paul is in the pocket of big Cable Forum

[papa smurf]

Originally Posted by Damien

Paul is in the pocket of big Cable Forum

A 40 pence bung won't go far

Originally Posted by papa smurf

A 40 pence bung won't go far

Esp as I expect our own costs will go up at some point, last I checked, servers use electricity.

[pip08456]

Incoming Prime Minister Liz Truss has drafted plans to fix annual electricity and gas bills for a typical UK household at or below the current level of £1,971 ($2,300).

In discussions with her team and government officials in recent days, Truss has settled on a mechanism that will avert the massive increase in energy bills that is due to kick in at the start of next month under the existing pricing system, according to officials and advisers to Truss who were briefed on the plan. The policy could cost as much as £130 billion over the next 18 months, according to policy documents seen by Bloomberg.

https://www.bloomberg.com/news/artic...ls-below-2-000

Yeah but we're still unclear if it's at £1,971 or £2,500 - the £400 discount (so £2,100 as the 'average').

[Jaymoss]

Nothing on whether or not the second cost of living will be scraped or kept separate also.

[Pierre]

The problem with a price freeze/fix, is that it doesn't incentivise people to reduce their energy consumption

Originally Posted by Pierre

The problem with a price freeze/fix, is that it doesn't incentivise people to reduce their energy consumption

There were ideas where you could taper the usage. I think OVO energy had this where it would work on a personal allowance system similar to taxation where only a certain amount of energy - probably the average usage or whatever - would be sold as the old price cap level but that would increase the more you use.

[OLD BOY]

Originally Posted by Pierre

The problem with a price freeze/fix, is that it doesn't incentivise people to reduce their energy consumption

This is true - the law of supply and demand. If we are not careful, the increasing scarcity of energy caused by prices to consumers being artificially low and usage kept at its present level could push the price even higher.

Originally Posted by Pierre

The problem with a price freeze/fix, is that it doesn't incentivise people to reduce their energy consumption

Considering the current price is 80% higher than at the beginning of the year, that may incentivise people to reduce their energy consumption…

According to below, the £3549 cap would have consisted of £2491 actual wholesale cost, £649 running costs, £169 VAT, £152 green tax, and £63 supplier profit.

So basically, if they took over running the networks, dropped the taxes, and allowed the suppliers a small profit, they would hit the £2500 limit.