Liz Truss has promised to announce a plan to deal with soaring energy costs within a week

The Homebrew Forum

Help Support The Homebrew Forum:

This site may earn a commission from merchant affiliate links, including eBay, Amazon, and others.
Status
Not open for further replies.
New Prime Minister Liz Truss will limit energy bill rises for all households for two years as the new prime minster tries to prevent widespread hardship.
A typical household energy bill will be capped at £2,500 annually until 2024.
The huge support scheme could cost up to £150bn, but Ms Truss refused to put a figure on it, saying "extraordinary times call for extraordinary measures".
Businesses will get support, with bills capped for six months, a shorter period of protection than many had hoped for.
The help will be for everyone in England, Scotland and Wales with equivalent assistance for Northern Ireland.
But there are concerns the measures are not targeted enough, with no additional support for the most vulnerable. As a result, millions are still expected to be in fuel poverty this winter.
The energy price cap - the highest amount suppliers are allowed to charge households for every unit of energy they use - had been due to rise to £3,549 for a typical household from October.
To limit the amount customers' bills go up by, the government will compensate energy firms for the difference between the wholesale price for gas and electricity they pay and the amount they can charge customers.

Commenting on what steps households should now take, Greg Jackson, chief executive and founder of Octopus Energy, said firms were still working through the details and customers should "sit tight and wait to hear from their energy supplier".
"Nothing will change until 1 October and we'll be in touch with everyone before then."
The dramatic state intervention will be funded by government borrowing, adding to the UK's already large debt pile. The total cost of the support will depend on the cost of energy on the international energy markets, which can be extremely volatile.
This comes after Ms Truss rejected calls to extend a windfall tax on gas and oil company profits to pay for the package.
Labour leader Sir Keir Starmer said the refusal to fund it with a windfall tax showed she was "driven by dogma" and "it's working people who will pay for that".

Liberal Democrat leader Ed Davey accused the government of bringing in a "phony freeze" while "refusing to properly tax the eye-watering profits of oil and gas companies."
"This will still leave struggling families and pensioners facing impossible choices this winter as energy bills almost double," he said.
Ms Truss argued it was "the moment to be bold".
"We are facing a global energy crisis, and there are no cost-free options," she said.
Gas prices have soared this year, largely due to the conflict in Ukraine which has reduced supplies of Russian gas.
Experts and charities warned that without help with soaring energy bills, lives would have been at risk this winter, with people struggling to afford basic day-to-day living costs.
Citizens Advice chief executive Dame Clare Moriarty, told the BBC the package will provide "much-needed relief for millions" but said she was concerned it is not going to reverse the trends it was seeing. "We're seeing problems turn up in the summer, which we would normally expect to be winter."
The government's new Energy Price Guarantee will limit the price suppliers can charge people for units of gas - although Number 10 is not saying what that unit cost will be.
Ms Truss also outlined plans "to make sure we have security of [energy] supply for the long-term".
This includes issuing new oil and gas exploration licences for the North Sea and lifting the ban on fracking for shale gas "where there is local support for it".
In addition the government will:
  • Scrap green levies - which add £150 to bills each year - which the £2,500 cap accounts for
  • Continue with a previously announced £400 energy bills discount for all households. Taken together, the government said this "will bring costs close to where the energy price cap stands today".
  • Launch a new oil and gas licensing round as early as next week, boosting production in the North Sea
  • Seek to negotiate lower-priced long-term contracts with renewable and nuclear power companies
  • Launch a joint scheme with the Bank of England to provide emergency support to struggling UK energy firms
  • Launch a review to ensure the UK is meeting its Net Zero 2050 target in "an economically-efficient way", given the altered economic landscape.
The decision to lift the ban on fracking will be controversial. The practice was halted in 2019 - as outlined in the Tory Party 2019 manifesto - amid opposition from environmentalists and local concerns over earth tremors.
The scheme to limit energy costs for businesses will also cover public sector groups like schools and charities. It will be in place for six months though it will be reviewed in three month's time "to consider where this should be targeted to make sure those most in need get support".
The Federation of Small Businesses (FSB) welcomed the help but said the announcement was "sparse on detail".
"Small businesses' instant reaction is that this is not enough information, yet, for them to plan," said Martin McTague, chairman of the FSB.
Downing Street said the price cap would boost economic growth and curb inflation by as much as 5%. The rate at which prices rise is currently at a 40-year high of 10.1%, largely driven by soaring energy prices.

https://www.bbc.co.uk/news/business-62831698
 

What the new Liz Truss energy plan means for you​


1662655926077.png


The new Prime Minister, Liz Truss, has outlined her plans to deal with soaring energy bills faced by households and businesses.
At its heart is a move to limit the 80% rise in domestic bills that was earmarked for October.
This is what it means for you.

How much will I pay?

You will still pay for the gas and electricity you use. But the government's Energy Price Guarantee will limit the price that suppliers can charge for each unit of energy.
For a typical household - one that uses 12,000 kWh (kilowatt hours) of gas a year, and 2,900 kWh of electricity a year - it means an annual bill will not rise above £2,500 from October. Without this intervention, that annual bill would have been £3,549 a year. Last winter it was £1,277 a year.
However, if you use more gas or electricity than that, you will pay more.
This guarantee will last for two years.

Will I have to pay it back?

Not directly on your bill or taxes. However, the government is paying for this by borrowing the money. That adds it to the pot of national debt. The prime minister says the cost will be outlined later this month.
In time, that could be paid for through taxation, but at the moment the government will borrow the money on international markets and pay a premium as a result.
So-called "green levies" will be moved off bills, and again paid for through borrowing on taxation.

Will I still get cost-of-living payments?

Yes, these can amount to hundreds of pounds this winter.
So far, a first instalment of £326 has been paid to low-income households on certain benefits and tax credits.
There is also a £400 discount on bills for all households over the winter.
These payments will only be paid this winter, under current plans, whereas the cap will be in place for two years. So, there will be an effective rise in what householders pay next winter.

Caps do not cover Northern Ireland. What happens to those household bills?

The government says that the same level of support will be provided to households in Northern Ireland, as it is in the rest of the UK.
However, this will require legislation.

I use heating oil, what about me?

The prime minister said a fund will be created to support those who are not covered by a cap, but she did not say how big that fund would be.
This includes people who use heating oil in their homes, those who have communal heating schemes, and people in mobile home parks who pay the park owner rather than a supplier.

More details will come later, but this will be an extremely complex task.
For example, people in park homes do not yet know how they will receive the £400 discount available to everyone - and that was announced months ago.
The government has not said how big this fund will be or how long it will take to organise.

I have a fixed deal - can I get out of it?

Fixed deals allow you to pay for energy at a set rate for a set period of time, but you are locked in.
Plenty of people whose fixed deals have expired in recent months may have considered fixing again, given the outlook of rising energy prices.
This has been an extremely expensive option, but one which some understandably chose to take given the eyewatering forecasts of soaring bills.
The prime minister did not mention fixed deals in her statement.
However, it is understood that suppliers are being asked to discount current fixed deals or allow customers to transfer to the cheaper variable deal without a penalty.
If you fixed within the last 14 days, you can cancel without charge.

What support is there for small businesses?

Businesses will get support, with bills capped for six months, a shorter period of protection than many had hoped for.
This support will focus on businesses on variable deals, or whose contracts are soon to come to an end. More details are here.

https://www.bbc.co.uk/news/business-62833623
 
Last edited:
It's okay guys we'll probably foot the bill to help us, and thus not actually help us at all.

The profit margins of energy companies, and the dividends received by parasitic shareholders are safe, for now.
 
I think it would cost silly money to open a coal mine...a billion? Those mothballed will be knackered and flooded..

Quite a lot of the old coal mines aren’t actually flooded, because the water is still pumped out of them.

The reason being is that coal gives off methane (natural gas) and some of the capped pit shafts have been drilled, and the gas is pumped out, pressurised, and burnt in an engine that generates electricity for the grid. There are hundreds of these engines across the old coal fields,

I used to emission test this industry for legal compliance.

If the mine floods, then the gas stops.
 
It's okay guys we'll probably foot the bill to help us, and thus not actually help us at all.

The profit margins of energy companies, and the dividends received by parasitic shareholders are safe, for now.
Liz Truss is spot on, if you want to grow an economy you need investment, in a roundabout way you yourself will be one of the parasitic investors if you have a bank account, insurance policy, superannuation, even your state pension etc are invested. Majority of investors are asset management groups serving the likes of us.
 
Liz Truss is spot on, if you want to grow an economy you need investment, in a roundabout way you yourself will be one of the parasitic investors if you have a bank account, insurance policy, superannuation, even your state pension etc are invested. Majority of investors are asset management groups serving the likes of us.
"Serving " must be a typo it is "milking"
 
Liz Truss is spot on, if you want to grow an economy you need investment, in a roundabout way you yourself will be one of the parasitic investors if you have a bank account, insurance policy, superannuation, even your state pension etc are invested. Majority of investors are asset management groups serving the likes of us.
Ok, so when do these energy companies and their shareholders start investing these disgusting profits, the unpaid wages of the energy sector workers, back into the economy that enabled the profits, rather than shipping them to off shore bank accounts and parasitic investments like land and property, to further parasitise from us?

No, having a bank account and insurance is not the same as shares and investments. The former are not optional (try driving without insurance, or having a job without a bank account). The latter are.

To compare these is either naïve, idiotic or disingenuous. Which is it?
 
Ok, so when do these energy companies and their shareholders start investing these disgusting profits, the unpaid wages of the energy sector workers, back into the economy that enabled the profits, rather than shipping them to off shore bank accounts and parasitic investments like land and property, to further parasitise from us?

No, having a bank account and insurance is not the same as shares and investments. The former are not optional (try driving without insurance, or having a job without a bank account). The latter are.

To compare these is either naïve, idiotic or disingenuous. Which is it?
Money I get from my dividend is either re-invested or spent in my local economy
 
Money I get from my dividend is either re-invested or spent in my local economy
And what % of the reported profit is that?

Furthermore, you don't say what "reinvesting" is in this. You're helping to improve the national infrastructure to ensure cheaper energy bills for future generations?
 
And what % of the reported profit is that?

Furthermore, you don't say what "reinvesting" is in this. You're helping to improve the national infrastructure to ensure cheaper energy bills for future generations?
Simply it's none of your business. You could do some research in to the companies to see what they are doing. My taxes will be used to repay thr national debt which is needed to ensure you get cheaper energy.

What are you doing to improve the national infrastructure to ensure cheaper energy bills for future generations?
 
And what % of the reported profit is that?

Furthermore, you don't say what "reinvesting" is in this. You're helping to improve the national infrastructure to ensure cheaper energy bills for future generations?
Have you ever heard the saying "get hung for a sheep as a lamb".
If you are drawing out of the investments of these companies which I am sure my private pension does and many more as they invest for profit for the contributors( we are technically investors) infact I remember a big hullaballoo about The Miners pension being invested in Rio Tinto Zinc when it was still apartheid but didn't see any Miners giving the pension part back
 
Ok, so when do these energy companies and their shareholders start investing these disgusting profits, the unpaid wages of the energy sector workers, back into the economy that enabled the profits, rather than shipping them to off shore bank accounts and parasitic investments like land and property, to further parasitise from us?

No, having a bank account and insurance is not the same as shares and investments. The former are not optional (try driving without insurance, or having a job without a bank account). The latter are.

To compare these is either naïve, idiotic or disingenuous. Which is it?
I don't know how you manage to get offshore bank accounts into the mix? If everyone put their money under the mattress then how could companies operate? People invest money to get a return, the profits go to pay investors and money is set aside for new projects up grading machinery bonuses etc. How does the money come back into the economy? As Leon explained dividends are paid, insurances mature, pensions are paid if you have health insurance when you get sick the money flows back in. It all depends on where the money came from for the asset managers to invest.
Offshore accounts is more for those who have illegal money where they can't explain where it came from. If you had legitimate money why put it in an offshore account when you can make more money reinvesting it.
The economy always has and always will be buoyed up by the working class, they spend money far more easily than those with money. Why do you think they give tax cuts? More money in the pocket of the working class for them to spend and spend it they will.
My business I was selling to all walks of life, those with the money were the hardest nut to crack and would haggle till the cows come home. The easiest were those short of money. Back in the financial crisis the labor government was in power here, they gave $1000 to every family under a certain threshold, most of that money went into the pokies!
 
Simply it's none of your business. You could do some research in to the companies to see what they are doing. My taxes will be used to repay thr national debt which is needed to ensure you get cheaper energy.

What are you doing to improve the national infrastructure to ensure cheaper energy bills for future generations?
Don't pretend you're doing something for the national good if you don't then say what it is.

Fighting for nationalisation.
 
Status
Not open for further replies.

Latest posts

Back
Top