The Energy Price Cap craic by Ofgem is utter, utter lunacy, particularly egregious is the Market Stabilisation Charge (MSC).
In a way, I could take the price rises, if they were going to be competed out once the price falls.
But they won't be:
The Market Stabilisation Charge (MSC) requires all domestic suppliers acquiring a customer to make a payment to the supplier that is losing the customer.
www.cornwall-insight.com
"The MSC has not yet been triggered, and currently, suppliers would only be required to make a payment to the losing supplier if wholesale prices fall by more than 30% compared to those used to set the price cap. Ofgem has now decided that from 25 May, the threshold at which the MSC will be triggered will reduce from 30% below the wholesale prices used to set the cap level to 10%. Ofgem is also proposing to extend the MSC so that it remains in place until March 2023.
If suppliers are required to pay the MSC when taking on customers they will likely factor this into the tariff offerings they are bringing to the market. Ofgem has said that 85% of suppliers’ costs incurred by purchasing energy in advance will be covered by the MSC, meaning that if the charge is activated, and wholesale prices have dropped significantly, suppliers are not likely to be able to immediately pass the savings on to customers through tariffs that substantially undercut the level of the price cap. However, the arrangements protect suppliers that have hedged in line with the price cap from incurring major losses, helping to limit market exits which will ultimately benefit consumers in the long run."
Fucking moronic stuff.
www.breakingnews.ie
tradingeconomics.com
