When I read about energy price caps if amounts are mentioned it is an annual cost in pounds for both electricity and gas. Why do I never find unit rates which will no doubt vary by location?
I can't say that I am impressed by the government trying bankrupt small energy companies. If my electricity supplier goes broke I will know who to blame, hopefully the small supplier has very few customers on a standard variable rate.
nationalisation is what we need not a bunch of parasites ....who is you gas and electricity with? ...none of your f****ng business ....
Why you blaming the govt? If they didn't charge their fixed price customers enough at sign up time then they weren't very clever.
Because the government has the cap. Why not let the energy companies charge more if the wholesale price increases, as happens with petrol and diesel.
Apparently there were much long supply contracts in the days of nationalisation.
No, but they do load all the suppliers with the "social and environment" costs that are more difficult for new entrants to administer and cater for. For more detail see the Watt Logic blog.
But we only got cheaper prices after the industry was de-regulated.
Possibly renewables have changed the type of contract now on offer. A contract price may be agreed but equally a minimum amount may have to be purchased. With the intermittency of wind and solar how much do you commit to buying for future delivery, especially if the political policy is to abolish the use of gas as soon as possible?
I'm not sure the blame can be put on Government. Remember the future is unknowable and companies that offer big discounts need to be able to cover their losses , and some of them seem to have forgotten that administration costs money, as that is all they are selling you, not gas or electricity, as they are to some extent govererned by the cost of the stuff which is affected by lots of things in the world. Brian
The companies that are going down are the ones with fixed tariffs well below the cap.
In a fluid market there really was no need for a cap.
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