…And over 4 million households will only get £100 off their 2k oil bills because they are not connected to a gas main.
This is obvious. You’d have to be a complete moron to think that you’ll get unlimited energy and only pay £2.5K
Another Tory lie. How many is that now? They’ve told more lies than truths!
It’s such a useless metric.
Bills are capped at £2500*
*regional variances are allowed, this is an average based on a typical year of some unrealistic value that is probably not applicable to your home, you could pay more or less than this amount because it totally depends on your actual usage. But hey, this way the tabloids and government get their tag line. Please speak to your doctor before taking an energy price cap to find out if it’s right for you. Side effects include: a smug government that will boast about helping the everyman while handing huge sums of tax money to billionaires already exploiting your misery for their financial gain, crippling debt, not being able to pay for what you use, extortionate prices, being fucking cold and in some cases, literal death.
Even moneysavingexpert and martin lewis keep referring to this figure, it’s so fucking misleading
Nobody in the media seems to actually understand the policy or they are intentionally reporting on it wrong as they are reporting that total energy costs to the consumer are capped at £2500.
This is definitively not the case, it’s a weird cap where the government has calculated what the ‘average energy usage of a household’ should be and is promising to pay the difference between that amount and the actual price on international markets.
It was predicted to cost 100-250bn BEFORE the pound crashed, the bond market evaporated and Russia started threatening to hit our pipeline infrastructure.
This disastrous model ruins incentives to save energy while we have an energy crisis that requires saving energy.
It’s very, very stupid & it doesn’t prevent the price from increasing, it merely bleeds the government as the price increases without protecting the consumer.
They’re throwing huge amounts of taxpayer money at a problem for political reasons & screwing up the politics of it.
The potential cost of this to the government is effectively unlimited, the end costs could be absolutely eye watering, on the order of hundreds of billions of pounds if there are ANY shortages, disruptions in supply or price squeezes by traders looking to scalp the government.
The UK isn’t the US, if the government accumulates hundreds of billions in debt it could cripple the country for decades.
Also I really hope I’m wrong about this but the second scheme they’ve announced is available to any firms that “make a material contribution to the liquidity of UK energy markets”.
I believe means that hedge funds & market makers are eligible to get the money.
I’m not certain, but the wording strikes me as very strange, I certainly hope that’s not the case.
She said what she believes is true.
It is wrong, like all of her beliefs.
Just go.
Shits going well when evern government departments are going “ACTUALLY!”
I’d appreciate if someone fact-checked me on this but as I understand it, it’s best to look at proportions.
Cap is twice what it was last year? You’re going to pay twice what you paid last year. Three times? Three times what you paid.
the average household, some people thinking they can use whatever they like and it’s only 2.5k
She’s not wrong, she’s just deliberately misleading to make it sound like people are being given better than what they’re really getting.
12 comments
Wait, what? I have to pay more than 2.5k???
…And over 4 million households will only get £100 off their 2k oil bills because they are not connected to a gas main.
This is obvious. You’d have to be a complete moron to think that you’ll get unlimited energy and only pay £2.5K
Another Tory lie. How many is that now? They’ve told more lies than truths!
It’s such a useless metric.
Bills are capped at £2500*
*regional variances are allowed, this is an average based on a typical year of some unrealistic value that is probably not applicable to your home, you could pay more or less than this amount because it totally depends on your actual usage. But hey, this way the tabloids and government get their tag line. Please speak to your doctor before taking an energy price cap to find out if it’s right for you. Side effects include: a smug government that will boast about helping the everyman while handing huge sums of tax money to billionaires already exploiting your misery for their financial gain, crippling debt, not being able to pay for what you use, extortionate prices, being fucking cold and in some cases, literal death.
Even moneysavingexpert and martin lewis keep referring to this figure, it’s so fucking misleading
I’m glad this is getting some traction with mainstream media, I wrote about it the other day on [r/economics](https://www.reddit.com/r/Economics/comments/xqcivg/bank_of_england_to_buy_bonds_in_bid_to_stop/iq8m21v/?utm_source=share&utm_medium=ios_app&utm_name=iossmf&context=3) but I’ll copy it below:
There’s some potential this won’t be fine.
Nobody in the media seems to actually understand the policy or they are intentionally reporting on it wrong as they are reporting that total energy costs to the consumer are capped at £2500.
This is definitively not the case, it’s a weird cap where the government has calculated what the ‘average energy usage of a household’ should be and is promising to pay the difference between that amount and the actual price on international markets.
It was predicted to cost 100-250bn BEFORE the pound crashed, the bond market evaporated and Russia started threatening to hit our pipeline infrastructure.
This disastrous model ruins incentives to save energy while we have an energy crisis that requires saving energy.
It’s very, very stupid & it doesn’t prevent the price from increasing, it merely bleeds the government as the price increases without protecting the consumer.
They’re throwing huge amounts of taxpayer money at a problem for political reasons & screwing up the politics of it.
The potential cost of this to the government is effectively unlimited, the end costs could be absolutely eye watering, on the order of hundreds of billions of pounds if there are ANY shortages, disruptions in supply or price squeezes by traders looking to scalp the government.
The UK isn’t the US, if the government accumulates hundreds of billions in debt it could cripple the country for decades.
Also I really hope I’m wrong about this but the second scheme they’ve announced is available to any firms that “make a material contribution to the liquidity of UK energy markets”.
I believe means that hedge funds & market makers are eligible to get the money.
I’m not certain, but the wording strikes me as very strange, I certainly hope that’s not the case.
She said what she believes is true.
It is wrong, like all of her beliefs.
Just go.
Shits going well when evern government departments are going “ACTUALLY!”
I’d appreciate if someone fact-checked me on this but as I understand it, it’s best to look at proportions.
Cap is twice what it was last year? You’re going to pay twice what you paid last year. Three times? Three times what you paid.
the average household, some people thinking they can use whatever they like and it’s only 2.5k
She’s not wrong, she’s just deliberately misleading to make it sound like people are being given better than what they’re really getting.