Gavv8:
I still can’t quite get a handle on the situation with energy price help but the rest just seems purpose built to fill the pockets of city boys/girls, people with large amounts of cash to spend on property and small businesses who contribute Jack all anyway.
The ‘energy price help’ has the same policy aims as all the more obvious handouts to the rich.
The Government will be limiting what consumers pay per unit of fuel, then any amount charged by suppliers over and above that price per unit is borne by the taxpayer.
For example, they are setting the gas price cap at 10.3 pence per unit.
The actual price of a unit ‘charged’ by the suppliers will be around 15 pence per unit.
This means the taxpayer will be paying 4.7 pence per unit of everybody’s bill.
Someone in a small house using 970 units a month for a gas bill of £100 will cost taxpayers 970 X 4.7p = £45 per month.
Someone in a mansion using 9,700 units a month for a gas bill of £1000 will cost taxpayers 9,700 X 4.7p = £455 per month.
Someone heating stables & swimming pools as well as their mansion (Rishi) using 97,000 units a month for a gas bill of £10,000 will cost taxpayers 97,000 X 4.7p = £4,559 per month.
Annually those figures are: £540, £5,460 & £54,708 respectively.
Having multiple homes will get you help for each one of them.
There are no limits on greed usage or reductions in help for those with a clear ability to pay.
The same goes for electricity costs - & these figures are based on current prices which will most likely rise even more in the 2 years this cap had been guaranteed for.
Obviously the energy companies, knowing the taxpayer is underwriting their oligopoly, will be raising prices beyond what market forces dictate the need to do.
Make no mistake - this is a bailout for the energy companies.
The smaller suppliers were allowed to go bust & now the remaining few are being bailed out to be paid for by us, our children & our children’s children.
The figures above do not take into account the additional cost of borrowing the money.
(All figures are approximate & do not include the standing charge element of bills).