Energy Bills

Posted this on the S&I thread but probably more relevant here. I've had a policy idea which I think might work but feel free to shoot down.

For Branded medicines in the UK we have two pricing schemes for pharma companies who sell in the UK. These set a limit on the revenue that can be made by the sector in the UK in any year and all revenue above that limit is clawed back by the government. Government are very careful not to call this a tax and instead present it as a saving to the NHS as that is the sole purchaser of branded medicines in the UK. However in effect it is essentially a tax and massively limits the profits of the sector. I actually think in the recent past the scheme has been too tight and we risked Pharma companies reactions but the changes to the schemes in 2024 and 2025 seem to have addressed this. There is the Voluntary Scheme: https://www.gov.uk/government/publications/2024-voluntary-scheme-for-branded-medicines-pricing-access-and-growth
And that is underpinned by a legal backstop that is the statutory scheme:https://www.gov.uk/government/consultations/proposed-review-of-the-statutory-scheme-for-branded-medicines-pricing

Why can't a similar scheme be applied to other sectors where specific conditions are found (small number of large and powerful companies making economically excess profits from essential goods). Top of that list being Energy. That would have the dual benefit of reduced prices for consumers and increased revenue for government. My very very rough calculations suggest doing similar to the energy sector could take £350 a year off the "average" energy bill, raise £10bn for the government and leave £10bn in profit for the sector.

Money raise could be used to take green subsidies off of the standing charge -reducing bills further. The rest could also be invested in building renewable infrastructure and growing the national owned GB energy company to become a genuine option as an energy generator and provider bringing prices down in the long term.

When applied to medicines this approach actually had the effect of increasing the pharma companies investment in the UK (or it did until Brexit fucked with our access to the European market) as the costs of this could be written off against the scheme and so investment represented a massive saving for them. This led to jobs and growth in the UK. This could actually encourage the fossil fuel giants to invest in renewable infrastructure.

Any reason why this wouldn't work? if we can do it to big pharma why can't we do it to energy? Most European countries have some kind of scheme to keep energy prices and company power down.

I don't think there would be any risk of them leaving the UK market as still have massive market power and captive customers.

Of course I'm not actually expecting this government to do it as their last election campaign was in part funded by those industries so I'm sure that came with promises.

I've set our radiator heating on level 15.5 and it seems okay at the moment, so long as we stay well wrapped up. Anyone have a better idea, or experience?

thewolfboy said:

I've set our radiator heating on level 15.5 and it seems okay at the moment, so long as we stay well wrapped up. Anyone have a better idea, or experience?

We do the same & only put it on when needed.
Keep doors shut as necessary & block drafts.

thewolfboy said:

I've set our radiator heating on level 15.5 and it seems okay at the moment, so long as we stay well wrapped up. Anyone have a better idea, or experience?

My house never drops that low even over night! We set at 20.5, although the radiators have those thermostat things going from 0-5, depending on room set to 2-4, Kitchen (coldest room) 5.

me and my partner have been lucky enough to be able to make some sacrifices and use some savings to install green tech to our home. Solar panels, batteries and more recently a heat pump. Today I requested Octopus puts our bills down to £100 per month and I think even that might be too much.  Our house uses a lot of electricity as its quite hi-tech, so it's been a real benefit to be able to charge the batteries on the cheap rate to the point where most of our electricity use, even with a heat pump, is on cheap night rate in winter and then mostly free in summer.

I would recommend anyone who thinks they will stay in their house long term and can afford it, to consider some green tech or anything to help with insulation and draft proofing. 

HardyAddick said:

I’m on the Octopus energy wholesale floating tariff. With what’s happening in the Middle East, is it worth coming off this tariff or sticking with it? I’m not sure at the moment.

I have just left the octopus wholesale tracker after 3.5 years on it. My deal expired in March and the calculation between they now apply means it was cheaper for me to go to octopus agile (I have solar panels). 

blackpool72 said:

HardyAddick said:

I’m on the Octopus energy wholesale floating tariff. With what’s happening in the Middle East, is it worth coming off this tariff or sticking with it? I’m not sure at the moment.

My octopus fixed rate is coming up for renewal. 
I'm thinking of extending for another 12 months. 
Be interesting what others think.

See above, compare octopus tariffs using the app and you will see actual costs (if your energy usage remains fairly consistent). 

ShootersHillGuru said:

I’ve just jumped from Octopus Tracker which was due to end at the end of the month anyway to a fixed tariff. I did this on day one of this war because I believe there’s only one way the wholesale prices of oil and gas are heading for the foreseeable future. If anyone is toying with getting a fix I’d really do it very quickly. The offers currently out there are likely to be withdrawn or modified to reflect the projected leap in prices. 

Just fixed for 12 months as I think the same as you regarding what way prices will go in the near future