Liz Truss energy statement

[shakeitoffshakeacocktail]

Capped at £2500????

How is that sensible? So if you live in a very large house (wealthy) you will benefit more than people who previously had small energy bills (poorer)

Example, last year my energy bill has and electric was £800 I am a single parent 1 child already frugal. If my bills go to 2500 that would be 1/5th of my yearly wage £12500

But my mums bills last year were £1800 so going to £2500 would be manageable/ a relief to her!

Is there more help on the way do we think?

We've been stitched up , but it'll all be overshadowed by the Queen and her news and not reported on properly.

you’ve seriously misunderstood energy bills.

Your bill isn't capped at £2500, it's an average. Your bill this year will be 6% more than it is now, if nothing else changes.

Everyone's bills won't go up to £2500 you know.

It is the unit prices that are capped. So if you use less you’ll pay less and vice versa.

The cap is on rates per per unit and daily standing charges, and the £2500 figure is the average household’s usage at the new capped unit rates.

It’s not unlimited energy for a set price.

You will only pay for what you use at the new capped prices.

That's good to know! Why is the news reporting a cap at £2500?

It’s a cap on the prices such that someone on ‘typical use’ will pay the £2500. Personally I will pay much less because I use less than average, people who use more than average will pay more.

I wish the media would just spell out what the capped unit prices are going to be instead of quoting this misleading average user price.

It's absolutely frightening how people don't understand very simple energy cap unit pricing.

OP please go and read Martin Lewis - spells it out clearly.

Thanks, I've not had time yet so I will do soon

Agree. We use way more than £2500, more than double that. I just want to know how much per kw my gas and electricity will be in October. I’ve been on to my energy providers app and the suggested DD box is now empty.

That's the price an 'average' household will pay. You could pay more or less based on how much energy you use. Basically, the price cap is only going up by a bit, not the massive increases we were expecting, so if you can afford to pay now then you should still manage to pay in October. The issue is for the poorest in society, who can't afford the already high prices, they won't be able to afford this new cap either.

Op - you've completely misunderstood how it works. Have a read through MSE

This

Was having the discussion this morning about how badly it's being reported.
Yes you have misunderstood along with a lot of other people probably!

Radio news last hour “no household will pay more than £2500” so it’s completely understandable that posters keep on misunderstanding the cap.

really...it doesnt take much to check the unit price and standard charge....its all basic maths....people should be relieved PM is doing something fast about this....

They have acted fast , but it was all probably ironed out a while ago anyway
It's not ideal at all , but at least something is being done.

Does this also mean that other help ie...£150 for disability claimants in Sept , extra winter fuel allowance for pensioners are cancelled ?

Thank you!

Not just me then!

"No household will pay more than £2,500"

What a stupid headline

Yes, I heard this and was shouting at LBC to report it correctly!

Agree with this.

Bills are not capped at £2500. Many will pay more. Many will pay less. The figure comes from what an "average" household will use.

The energy cap is not like Netflix, its not £2500 and use all you want.

If you live in a 10 bedroom house and have the heating and lighting on all day at max ... your bill won't be £2500 ..

From Martin Lewis 'Cheap Energy Club' newsletter just now:

"On the back of a prior briefing and the announcement in Parliament, here is my very quickly bashed out summary of the new energy price freeze.

1. The new price guarantee starts 1 October, and for someone on typical use will be £2,500 a year and will last for two years.
2. The current price cap is £1,971 a year rate at typical use, and was due to rise to £3,549 a year (and likely £5,400 a year in January). It was £1,277 a year last winter.
3. This will be a cap on standing charges and unit rates, so use less you pay less, use more you pay more (I’ll publish the rates when I have them). There is no total cap on what you pay, the typical rate is just a figure for illustration.
4. The new lower price cap includes getting rid of the green levies.
5. The £400 payment to all homes (paid as £66 a month over winter) will continue.
6. That will take the average payment to £2,100 a year.
7. To estimate what you’ll pay, over a year, multiply current costs by 6.5% (each £100 becomes £106.50). This includes the £400 discount (but not other payments).
8. For those with lower than typical bills, the % increase will be lower, for higher users higher (as the £400 payment is flat regardless of use, so has a bigger proportionate reduction on lower usage).
9. The £650 payments to those on many benefits will continue (half’s already been paid).
10. As will the £150 to those with disabilities and £300 to pensioners.
11. There’s no announcement on whether these payments will be in place next winter – I suspect the political reality is at least for benefits recipients – similar will be paid next year.
12. VAT is not being reduced in this announcement, but there is a chance (50-50 I’d say) that may happen in the Chancellor’s fiscal statement next week.
13. For those on LPG and heating oil, I’m told there will be discretionary payments to help them too (awaiting details).
14. For those in park homes and who pay landlords directly, I’m told they should benefit from the new business help (awaiting details).
15. I'm hearing fixed tariffs will have the same per pound unit rate reduction as variable tariffs (ie, roughly 30% off). So it looks like, unless you fixed at over the new October price cap level, your fix will be cheaper than moving to variable. (More to check on this.)

These are provisional findings."