News0 min ago
When Is A Cap Not A Cap?
26 Answers
What sort of baloney is this from the Government.....
Electricity and Gas prices to be held at a maximum as of today, for the vulnerable in society. However, it still can go up if the price of utilities raw products increase - I hate to be a pedant but that isn't a cap, Mr Clark or Mr. Nolan.......
Electricity and Gas prices to be held at a maximum as of today, for the vulnerable in society. However, it still can go up if the price of utilities raw products increase - I hate to be a pedant but that isn't a cap, Mr Clark or Mr. Nolan.......
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The government cannot indefinitely cap the price of something where the raw materials are outside both their control and that of the suppliers. What are the suppliers to do if, for example, the market price of gas increases beyond the capped price? Are they expected to simply supply it at a loss?
I’ve read that the beneficiaries of this proposal are mainly “vulnerable” customers. This is not so. It applies to those on standard variable tariffs. Almost half of all customers are on these tariffs and not half the population is "vulnerable" (whatever that might mean). They are usually the “default” tariff for those who have not troubled to shop around for a cheaper deal. Those who have taken the trouble to reduce their costs will not benefit from the "cap". The easiest way for people to reduce their energy bills if they are on a default tariff is to seek out a cheaper deal.
I’ve read that the beneficiaries of this proposal are mainly “vulnerable” customers. This is not so. It applies to those on standard variable tariffs. Almost half of all customers are on these tariffs and not half the population is "vulnerable" (whatever that might mean). They are usually the “default” tariff for those who have not troubled to shop around for a cheaper deal. Those who have taken the trouble to reduce their costs will not benefit from the "cap". The easiest way for people to reduce their energy bills if they are on a default tariff is to seek out a cheaper deal.
What really annoyed me was the statement they apparently put out to the effect that the maximum that energy would cost a home would be £X, saving £Y. This is clearly nonsense because any of us will be charged for whatever we consume - we cannot keep burning it and expect never to exceed £X in cost. Why is it that this sort of nonsense is even whispered, never mind shouted from the rooftops ? Another irritating example is referring to the size of accommodation by the number of rooms. You hardly ever hear what the floor area is, which is much more descriptive, and lots of authorities,institutions, companies and individuals seem disinterested in it. Developers, builders, sellers, etc. of flats and houses exploit the number of rooms bias and to pad out the numbers create rooms that are little more than large cupboards. Deliberately attention grabbing and misleading.
Agree 100% Karl. I have been looking through the articles on this issue today and nowhere can I find a meaningful explanation of how the "cap" will work. I have absolutely no idea how the sums published have been arrived at (in terms of KwH) or how it is proposed to work. It is ll meaningless waffle.
“If you see Sid, Tell him”
Was the tag line to sell shares in British energy utility companies.
It was a great scccess. The selling price was greatly under-valued, and the shares were quickly resold at a great (short-term profit) to foreign Corporations, which is why most of our Electricity, Gas and Water are now owned by French and German Companies.
The UK Government in the 1980s sold off our assets, and control to foreign (mostly European) agents, and the British consumer is now suffering.
Which in short, is why they can charge whatever they like, and the Government talk of Caps is intraventuist and anti-freemarket.
Was the tag line to sell shares in British energy utility companies.
It was a great scccess. The selling price was greatly under-valued, and the shares were quickly resold at a great (short-term profit) to foreign Corporations, which is why most of our Electricity, Gas and Water are now owned by French and German Companies.
The UK Government in the 1980s sold off our assets, and control to foreign (mostly European) agents, and the British consumer is now suffering.
Which in short, is why they can charge whatever they like, and the Government talk of Caps is intraventuist and anti-freemarket.
