Good news! I have been so careful with my energy consumption since the end of March that I am actually being sent a refund by EDF, I put it down to changing to LED lights and using less heating, and changing my flow temperature from when the prices went up.
Vs the same period last year, I have cut my electricity by 25% and my gas usage by a huge 40%
So, on my £294 a month payments, I have been refunded £262. Brilliant.
Bad news! They have just announced that my new monthly direct debit will be... £501, despite my total bill between April and August inclusive being just £995.
Are you sure they haven't just looked at what you are paying and put it up accordingly? Without considering that you are paying too much. I was in arrears and they put mine up to an amount that was too much. I didn't mind as I didn't want to be in arrears but I am now quickly £500 in credit. I didn't want to change anything as I could see the incoming storm but I am half expcting them to put my existing amount up because quite frankly they are not the best communication wise and speaking to a competent person is not easy whereas a few years ago it was.
I've used the online EDF "Chat" feature recently & once an Advisor joins the conversation ( after the robot fails to understand the problem!) I've found that satisfactory answers are given to issues .
The added bonus is that you can save the conversation which is very useful should you have the need to refer back to what was actually "said".
I took a punt last September and went for an EDF fixed tariff until October 2024 .. this doubled my monthly payments and was almost double the unit rate for both gas and electric .. even so it turns out to have been a worthwhile move .. I am supposing that even if the Govt freeze prices tomorrow, the new price will still be above what I'm paying now
AND .. I am sure that this has been raised before .. the electric price is fixed to the cost of the gas which is used to drive the power station turbines .. this means that nuclear and 'windmill' etc. electric, produced at a much cheaper cost than gas generated electricity is sold to the grid at a greatly inflated price over what are its production costs, ALSO, every consumer is paying a green levy to pay to support 'green energy'
Presumably Liz lll's proposals will sort out these anomalies as well as allowing for new Nth Sea gas and oil wells and reopening or building gas storage facilities. Fracking must be a last resort, BUT if the Ukrainian situation goes on for years and years, this might have to looked at again
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.
Good news! I have been so careful with my energy consumption since the end of March that I am actually being sent a refund by EDF, I put it down to changing to LED lights and using less heating, and changing my flow temperature from when the prices went up.
Vs the same period last year, I have cut my electricity by 25% and my gas usage by a huge 40%
So, on my £294 a month payments, I have been refunded £262. Brilliant.
Bad news! They have just announced that my new monthly direct debit will be... £501, despite my total bill between April and August inclusive being just £995.
£995 seems quite expensive as I'd have expected very little heating usage in that period, outside of April mine's been on for 2 days in that period and one of those was testing a new radiator.
I love a bath unfortunately!
So does my wife, every day!
It's worth looking at your hot water tank and how long you have the water heating on for. Mine's a brand new megaflo and I've been surprised quite how well insulated it is. It's a big tank (about 330l) and I have it on for 30 minutes in the morning and 45 minutes in the evening (Gas boiler) and we have piping hot water - my monthly gas usage is about £25, we do have a Gas hob as well within that used every day.
I'm getting quotes for Solar and battery with the hope that after that my Gas usage will be zero outside of heating the house in Winter, the gas hob is being replaced with electric at the moment as we are having a new kitchen fitted.
My gas excluding standing charge is about £45 a month in that period. That does also include filling a 700l hot tub 3 times in that period.
Wife loves a bath too!
I'd love a megaflo. Water tank is very old. Hot water on for a lot (primarily because my tank is small so can't fill up for the day) but I'm happy with that I think. Like I said, I'd love a megaflo
It's worth looking at a megaflo or similar. I had all the plumbing done and new boiler and it wasn't hugely expensive, especially when I consider in Winter months I'm probably saving well over £250 a month on gas as the old boiler was very inefficient (probably more the way rates are going).
I also needed a big hot water tank as a family of four adults, means on average 1 or two baths and 3 or four showers. It also means everything is mains pressure and no water tanks in the loft to leak!
O you could cut a corner and just get a bigger tank, they aren't expensive.
I’m looking at doing this and adding an immersion heater with a switch that will get it to heat the water when the solar is generating and use gas if required when not. This should give me more use of the solar I generate without getting a battery. That may be worth you considering.
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 problem. Payback is closer to 10 years (I guess) for most so its not a sensible investment for most without significant subsidy. You cant really base on todays energy prices given its so volatile and we don't know where prices will stabilise to / revert to either in my opinion.
Maybe we will see massive investment in solar in our fields etc. (despite that not being like by all) and on commercial property etc as a quicker way of creating energy supplies for the country as a whole & as a step in creating more energy security. Who knows what we will learn tomorrow.
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 problem. Payback is closer to 10 years (I guess) for most so its not a sensible investment for most without significant subsidy. You cant really base on todays energy prices given its so volatile and we don't know where prices will stabilise to / revert to either in my opinion.
Maybe we will see massive investment in solar in our fields etc. (despite that not being like by all) and on commercial property etc as a quicker way of creating energy supplies for the country as a whole & as a step in creating more energy security. Who knows what we will learn tomorrow.
You could have the amount paid for what is generated track the capped price at a slightly lower level. With high inflation and interest rates relatively low in comparison money sitting in the bank is in real terms losing value.
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.
But can you be sure the amount paid for your excess energy will in future be at the sort of level suggested? I’m cynical it will be further down the line
But can you be sure the amount paid for your excess energy will in future be at the sort of level suggested? I’m cynical it will be further down the line
The cap will never drop below the £2500 mark that’s for sure.
But can you be sure the amount paid for your excess energy will in future be at the sort of level suggested? I’m cynical it will be further down the line
The cap will never drop below the £2500 mark that’s for sure.
Not sure I follow? The unknown for me is whether the current payback for excess energy on solar will always be at a rate that is comparable to today and helps justify the upfront investment.
But can you be sure the amount paid for your excess energy will in future be at the sort of level suggested? I’m cynical it will be further down the line
The cap will never drop below the £2500 mark that’s for sure.
Not sure I follow? The unknown for me is whether the current payback for excess energy on solar will always be at a rate that is comparable to today and helps justify the upfront investment.
There is a real issue here the rate paid is not a fair one and there is no free market to shop elsewhere. If this was addressed far more people would take it up.
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.
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.
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.
It’s a simple equation to me. There is a level of tax revenue required wherever iit comes from.
I don’t see any government particularly aligned to where iit comes from as long as it’s relatively fair and equitable accepting there will always be winners and losers.
Hence my point that I am sceptical the savings long term will be as great as now.
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.
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!!!!
Don’t worry, Liz is about to sort you out (good news - your great, great, great grandchildren will be paying for it too!)
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.
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!)
All of the above underlines why the narrative of "tighten your belts and suck it up for a while to get through this" misses the mark.
It's great that we share money saving tips on here and I certainly wouldn't want to discourage that or pour scorn on it, but the way out of this mess is not just us plebs being a bit more frugal. Beware that narrative.
I believe Martin Lewis has provided in depth analysis (posted elsewhere) showing that no amount of coupons, codes, switches, sign ups and cut backs cam get close to covering the financial challenges ahead.
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%.
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%.
Looking forward to my fixed term ending in March 2024!
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
so with an energy price cap of £2.5k......how does that work if you are already paying ALOT more than that?
I think the cap is actually a cap on a price per kWh, Ofgem (the regulator) then calculate the amount of energy an “average” house should use in a year and multiply that by the price per kWh which gives you the £3,500 figure (or whatever the press report the cap as). If you have a mansion and use tons more than their average assumed energy consumption then you’ll pay more than the headline figure, if you live in a one bed flat and never turn the heating on then you’ll pay less
so with an energy price cap of £2.5k......how does that work if you are already paying ALOT more than that?
I think the cap is actually a cap on a price per kWh, Ofgem (the regulator) then calculate the amount of energy an “average” house should use in a year and multiply that by the price per kWh which gives you the £3,500 figure (or whatever the press report the cap as). If you have a mansion and use tons more than their average assumed energy consumption then you’ll pay more than the headline figure, if you live in a one bed flat and never turn the heating on then you’ll pay less
bottom line is that if you are a high kWh consumer (whether by living in a mansion or simply maybe just a rural property without access to gas), you're still fooked......I reckon my rate will end up around 35p/kWh which is still wholly unsustainable.
By factoring in the £400, they've helped everyone on or under the capped level of consumption (which is good), but sadly it emburdens further anyone above it.
Not an easy issue to tackle, and not one there was ever going to be a silver bullet for, but personally I was hoping the current 28p/kWh was going to be the peak.
Comments
The added bonus is that you can save the conversation which is very useful should you have the need to refer back to what was actually "said".
AND .. I am sure that this has been raised before .. the electric price is fixed to the cost of the gas which is used to drive the power station turbines .. this means that nuclear and 'windmill' etc. electric, produced at a much cheaper cost than gas generated electricity is sold to the grid at a greatly inflated price over what are its production costs, ALSO, every consumer is paying a green levy to pay to support 'green energy'
Presumably Liz lll's proposals will sort out these anomalies as well as allowing for new Nth Sea gas and oil wells and reopening or building gas storage facilities. Fracking must be a last resort, BUT if the Ukrainian situation goes on for years and years, this might have to looked at again
Maybe we will see massive investment in solar in our fields etc. (despite that not being like by all) and on commercial property etc as a quicker way of creating energy supplies for the country as a whole & as a step in creating more energy security. Who knows what we will learn tomorrow.
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.
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!!!!
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.
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!)
It's great that we share money saving tips on here and I certainly wouldn't want to discourage that or pour scorn on it, but the way out of this mess is not just us plebs being a bit more frugal. Beware that narrative.
I believe Martin Lewis has provided in depth analysis (posted elsewhere) showing that no amount of coupons, codes, switches, sign ups and cut backs cam get close to covering the financial challenges ahead.
The ramifications of this energy crisis, no matter what Truss does, will run for years and years
By factoring in the £400, they've helped everyone on or under the capped level of consumption (which is good), but sadly it emburdens further anyone above it.
Not an easy issue to tackle, and not one there was ever going to be a silver bullet for, but personally I was hoping the current 28p/kWh was going to be the peak.