I assumed the price cap is on the Unit Rate and Standing Charges, as it is at present?
That does not mean that everybody will pay £2,500 or that nobody will pay more than that. It means that the unit price is capped and if you calculate the average units used by a typical family home at the price capped rate, then they would not be paying more than £2,500.
However, if you use more units than “average” you may be paying more - it’s the unit prices that are capped, not the total amount you pay.
She is doing exactly what she said she would
which is not to put a windfall tax on the energy companies
She is very free market and profit orientated
What she is actually doing is transferring £100 Billion of taxpayers money to the energy producers which they do not have to pay back and who are paying large dividends to their investors, many of whom are based abroad.
This money has to be paid back to the Government, by us mugs.
If we want to continue to use our energy supplies in the same way as we do now we should be prepared to pay the price.
Energy is in short supply, the price is increasing and here in the UK we waste an awful lot of it.
Our houses are not well insulated, we have to be forced to use low energy light bulbs, we leave the lights on and things on standby far too long.
Can you remember when the EU reduced the wattage of vacuum cleaners?
We don’t need 2kw vacs, we have sharks and dysons with very efficient lower wattage motors.
Putin is using gas as a weapon, a very effective economic weapon.
He is even burning it off deliberately.
Here in the UK we are luckier than most european countries, we only get 6% of our gas from Russia, we can save 6% without much hassle.
The Resolution Foundation said the prime minister’s energy package, announced hours before news of the death of the Queen last week, would come with a “colossal” price tag for taxpayers that was poorly targeted to help those most in need when combined with tax cuts promised in her leadership campaign.
It said the richest tenth of UK households would receive £4,700 in support, on average, from the government’s “energy price guarantee” and cuts to national insurance – far in excess of the £2,200 support for a typical household in the poorest tenth.
The Resolution Foundation said the plan to limit an increase in the cost of a typical household energy bill to £2,500 for two years from October would cost about £120bn. It warned that Truss’s plan to avoid a fresh windfall tax on energy producers would mean heaping the cost on taxpayers, with as little as £1 in every £12 spent on energy support for households recouped directly from higher taxes on energy firms.
The thinktank said the average level of support for households would hit £2,000 this year because of the energy price guarantee, as well as financial support for all households and additional one-off payments for those on means-tested benefits. Taken together, it said a similar level of support was provided for rich and poor households.
However, richer households will benefit substantially more next year from plans to reverse national insurance tax increases implemented in April. Alongside the blanket support from the energy price freeze, which will benefit households with the biggest gas and electricity bills, it said this would “skew support towards the very highest-income households”.
Actually, I’ve just received the lowest gas bill for the last three months that I’ve ever paid…I had to check my meter reads again…
Electricity was a bit steep though…About twice as much as I normally pay for this time of year even though the units used were about the same.
Liz Truss is in New York for the UN General Assembly where she will use her speech to rally support for Ukraine.
Speaking to BBC Political Editor Chris Mason on her flight to New York, Ms Truss said higher fuel bills were “a price worth paying for Britain, because our long-term security is paramount”. But she said plans to be outlined later this week would curb future energy bill increases, and “guarantee” that households “won’t have to pay fuel bills that are unaffordable”.
Explaining her strategy to boost domestic energy production, Ms Truss said that the “entire Western world” had become “too dependent on authoritarian regimes not just for our energy supplies, but also for other critical minerals and other goods”. Ms Truss ruled out rationing energy to deal with rising costs.
Under her plans, the UK could become a net energy exporter by 2040, Ms Truss claimed.
If it was all so obvious and simple, how come nobody spotted it beforehand? She may actually be the equivalent of Newton, and maybe something fell off a tree and hit her on the head.
Apparently Russia only supplied 3% of our gas despite claims that Putin is responsible for the inflated bills and limited supply. I think we are being fleeced…
Not that any of the suppliers are making it easy to swap between them at present, but if any of you can provide details of fuel prices from 1 Oct, at least we can compare for future reference.
she’s turning out to be!!!
