Energy Bills

ShootersHillGuru said:

valleynick66 said:

ShootersHillGuru said:

Rob7Lee said:

Massively subsidise Solar and the electricity problem will greatly reduce. I'm looking at it, with batteries I can likely reduce my use of the grid by around 60% (depending on batteries I go for it could be more or less) and also sell them some! It's just a decent outlay to start with. If the Government subsided a fair chunk I wouldn't even be considering if worthwhile or not I'd be booking it in.

That’s the rub though isn’t it. It’s a fabulous idea that should be a no brainer for everyone but the reality is that for most households in the U.K. it’s basically a pipe dream. The government must address this with huge investment in subsidies but Truss has already hinted that her policy going forward will be opening up more oil / gas fields and building more nuclear power stations. Last thing the government want is the nation’s households being self sufficient. 

That’s a bit of a stretch. 

We can’t be without some central infrastructure and hopefully more green sources generally. 

Subsidies AND long term investment is ideal assuming it adds up financially (sufficiently) for all stakeholders. 

Agree my statement seems a stretch but the route I’m coming from is that in revenue terms the last thing the government want is people to be anywhere near energy self sufficient. I think I read earlier that one of our CL renewable experts said around 70% of a households requirements could be met. The big energy companies would be in the shizer and their tax revenues to the government decimated.

Well even iif we get anywhere near those levels then of corse tax take will need to come from elsewhere to fund services etc 

same applies to switching to EVs; when critical mass is achieved no doubt there will be a tax iof some  description on EV charging to offset  loss of revenue from the petrol pumps. 

Rob7Lee said:

Huskaris said:

Did some maths and it turns out my leap from £294 to £500 a month, despite me having significantly cut back, is quite realistic. 

I know we often talk on terms of the value in pounds that the new price cap will be, but I find that hard to relate to, but percentage increases I can always handle. 

Below is my EDF account (I'm on the standard tariff as my fix ended, so this will apply to most on here I would imagine. Electricity is going up by 80%, and gas is going up by 99%....

So that's my energy bill doubling, which is £250 a month, plus a mortgage increase of £500 (a massive, massive ticking time bomb, especially for new entrants onto the ladder with less equity who are highly leveraged and coming to the end of their 2 year fix when they bought in the stamp duty holiday). £750 a month, using some very lazy maths (I use the rough view that £1,000 salary = £50 p/m in your pocket) that's the equivalent of tearing £15k p/a out of my gross salary. 

Really hope for a good announcement today!!!!

Based on what's talked about, the average going from £1971 to £2500 or around 25% up your £290 would go to around £370. About £1k a year more, although you are already set to get £400 back so in reality IF Truss does what is being proposed your bill will go up about £50 a month.

I agree and have been saying for a while, mortgages are a ticking time bomb which will play out over the next 12-36 months as 2 year and 5 year fixes come to an end. People need to start planning for that ASAP but lets see what happens to rates over the next 3-6 months.

It's absolutely the case that this will happen. I know to many it is inconceivable that a property crash is round the corner, but it's definitely coming, definitely. 

For two people in a £700k house for example, one person's mortgage might go up by, say £50pm, whereas their neighbours might go up by, say £600pm. 

I think a lot of people's household finances can easily buckle under that pressure, especially if combined with increases in energy bills that could be an extra £100-£300 a month on top of that (let's not forget that 2 years ago, energy prices were still far lower than they are now!)

Huskaris said:

Rob7Lee said:

Huskaris said:

Did some maths and it turns out my leap from £294 to £500 a month, despite me having significantly cut back, is quite realistic. 

I know we often talk on terms of the value in pounds that the new price cap will be, but I find that hard to relate to, but percentage increases I can always handle. 

Below is my EDF account (I'm on the standard tariff as my fix ended, so this will apply to most on here I would imagine. Electricity is going up by 80%, and gas is going up by 99%....

So that's my energy bill doubling, which is £250 a month, plus a mortgage increase of £500 (a massive, massive ticking time bomb, especially for new entrants onto the ladder with less equity who are highly leveraged and coming to the end of their 2 year fix when they bought in the stamp duty holiday). £750 a month, using some very lazy maths (I use the rough view that £1,000 salary = £50 p/m in your pocket) that's the equivalent of tearing £15k p/a out of my gross salary. 

Really hope for a good announcement today!!!!

Based on what's talked about, the average going from £1971 to £2500 or around 25% up your £290 would go to around £370. About £1k a year more, although you are already set to get £400 back so in reality IF Truss does what is being proposed your bill will go up about £50 a month.

I agree and have been saying for a while, mortgages are a ticking time bomb which will play out over the next 12-36 months as 2 year and 5 year fixes come to an end. People need to start planning for that ASAP but lets see what happens to rates over the next 3-6 months.

It's absolutely the case that this will happen. I know to many it is inconceivable that a property crash is round the corner, but it's definitely coming, definitely. 

For two people in a £700k house for example, one person's mortgage might go up by, say £50pm, whereas their neighbours might go up by, say £600pm. 

I think a lot of people's household finances can easily buckle under that pressure, especially if combined with increases in energy bills that could be an extra £100-£300 a month on top of that (let's not forget that 2 years ago, energy prices were still far lower than they are now!)

Indeed, the best 5 year fixes currently are 3.68%, mine in December last year was under 1%! I only really took one as it was so cheap and could earn more on my investments & savings, so have a bit over 4 years to pay it off but I'll hold fire until just before it ends! I can see the base rate increasing next week so I'd expect before long 5 year fixes to top 4%.

Huskaris said:

Rob7Lee said:

Huskaris said:

Did some maths and it turns out my leap from £294 to £500 a month, despite me having significantly cut back, is quite realistic. 

I know we often talk on terms of the value in pounds that the new price cap will be, but I find that hard to relate to, but percentage increases I can always handle. 

Below is my EDF account (I'm on the standard tariff as my fix ended, so this will apply to most on here I would imagine. Electricity is going up by 80%, and gas is going up by 99%....

So that's my energy bill doubling, which is £250 a month, plus a mortgage increase of £500 (a massive, massive ticking time bomb, especially for new entrants onto the ladder with less equity who are highly leveraged and coming to the end of their 2 year fix when they bought in the stamp duty holiday). £750 a month, using some very lazy maths (I use the rough view that £1,000 salary = £50 p/m in your pocket) that's the equivalent of tearing £15k p/a out of my gross salary. 

Really hope for a good announcement today!!!!

Based on what's talked about, the average going from £1971 to £2500 or around 25% up your £290 would go to around £370. About £1k a year more, although you are already set to get £400 back so in reality IF Truss does what is being proposed your bill will go up about £50 a month.

I agree and have been saying for a while, mortgages are a ticking time bomb which will play out over the next 12-36 months as 2 year and 5 year fixes come to an end. People need to start planning for that ASAP but lets see what happens to rates over the next 3-6 months.

It's absolutely the case that this will happen. I know to many it is inconceivable that a property crash is round the corner, but it's definitely coming, definitely. 

For two people in a £700k house for example, one person's mortgage might go up by, say £50pm, whereas their neighbours might go up by, say £600pm. 

I think a lot of people's household finances can easily buckle under that pressure, especially if combined with increases in energy bills that could be an extra £100-£300 a month on top of that (let's not forget that 2 years ago, energy prices were still far lower than they are now!)

Out of all this that is one of my big worries, me and my partner are renting (in London) have been saving to buy a house in the Glocestershire or Worcestershire regions and have a target to move in 2024 (was originally this year but covid really messed us up) as we should have enough for the deposit by then. But lord knows what the market will look like by then. Affordability is already getting stretched as it is but we can only hope there is a calm after this storm but if there is a crash, i'm not sure we may have to revise our targets.

The ramifications of this energy crisis, no matter what Truss does, will run for years and years

Proof of the pudding will be how people cope during the coming months. If the help is not enough people won’t forgive. 

ME14addick said:

The cap is still almost double what it was this time last year, so we're all poorer, with those on lower incomes much worse off.

Plus £400, plus more for those on low incomes etc...

It could have been a f*cking sight worse.

Quite happy with that announcement actually! Could be a lot worse!

ME14addick said:

bobmunro said:

ME14addick said:

The cap is still almost double what it was this time last year, so we're all poorer, with those on lower incomes much worse off.

Plus £400, plus more for those on low incomes etc...

It could have been a f*cking sight worse.

It could, but there are many who are already struggling and further tax cuts, which I presume will be announced by the Chancellor won't have much effect unless you have a higher income. Many don't qualify for benefits but are struggling on low wages which aren't keeping pace with inflation.

They could do more, but this together with the £400 for all and the extra £250 for some should go a long way to alleviating the issue (and I assume pensioners will still get the winter fuel allowance on top so potentially £850 for some).

Huskaris said:

Quite happy with that announcement actually! Could be a lot worse!

Personally wouldn't say I'm very pleased with it - I'm glad something has been done (finally - thanks Boris) but the way it's been implemented means we're now massively burdening ourselves with even more debt to ensure the energy companies profits remain high.

I also think the price it's been capped at is too high for many families, and there is no support being offered for the lowest income or elderly groups. Businesses energy has also been capped for a much shorter time, 6 months I think? 

The cap on energy should help ease inflation a little, but I wouldn't be surprised if we end up printing more money soon to boost the economy, which will feed inflation instead.

Furthermore, another missed opportunity to catalyse change in our energy sector to move towards more green/renewable/sustainable energy - instead we've brought fracking back and increased production of gas/oil in the North Sea.

Seems very short-term bandaging over cracks, not sufficient to truly support our economy, most at high-risk, or secure our future.

Rob7Lee said:

LonelyNorthernAddick said:

Huskaris said:

Quite happy with that announcement actually! Could be a lot worse!

Personally wouldn't say I'm very pleased with it - I'm glad something has been done (finally - thanks Boris) but the way it's been implemented means we're now massively burdening ourselves with even more debt to ensure the energy companies profits remain high.

I also think the price it's been capped at is too high for many families, and there is no support being offered for the lowest income or elderly groups. Businesses energy has also been capped for a much shorter time, 6 months I think? 

The cap on energy should help ease inflation a little, but I wouldn't be surprised if we end up printing more money soon to boost the economy, which will feed inflation instead.

Furthermore, another missed opportunity to catalyse change in our energy sector to move towards more green/renewable/sustainable energy - instead we've brought fracking back and increased production of gas/oil in the North Sea.

Seems very short-term bandaging over cracks, not sufficient to truly support our economy, most at high-risk, or secure our future.

I thought there was already agreed extra help for the lower income families and the lower income pensioners? 

I know my Father in law is over the moon on the help (not just that announced today), he's always been very frugal, lives in a very small, modern, 2 bed house that had a new boiler a couple of years ago and has always been the 'put a bigger jumper on' sort. His energy consumption used to be about £35 a month, so that might be £70 now, but he'll get £600 this year I think which pretty much covers 90% of his gas and electric bill for the year. On top of that our friendly society will be making benevolent grants of up to £300 (he'll get the full amount as over 70) so he's going to be well in profit! 

And for everyone else that isn’t ? 

Martin Lewis has been tweeting some important information about fixing tariffs for anyone that may have recently fixed and is planning to cancel that fix.

Have been unable to post the tweet but if the above applies to you, it's worth having a look at what he says, as it may cost you several hundred pounds.