depends...

There's bound to be some structural costs to recover that will get baked in, so I wouldn't necessarily assume the price cap will come down any time soon (subject to political interference)

But if you mean will headline in-contract prices fall, and possibly fall below the price cap again - then yes at some point they will. Maybe relatively quickly if the Ukraine situation gets resolved and Russia returns to the fold.

Once you've incurred your loss it's banked. Each new selling season is a new selling season: If you price at costs + overheads + margin + recovery of historic losses then you will get undercut by someone just pricing on costs + overheads + margin.

Key to it all will be what Ofgem does about new market entrants (or re-entrants). Most of the folk that ran these defunct energy companies are still out there, will they be able to jump back in with the same old model or will Ofgem make it harder?

More competition = cheaper consumer prices.

Whether we're talking 12, 24, or 36 months - who knows.

Posted By: CWC on May 17th 2022 at 10:33:03

Message Thread

wrath advice required (General Chat) - shoddy, May 17, 08:35:23
- You need to respect the will of the people (n/m) (General Chat) - ChampsChamps2023, May 17, 13:09:26
  - Supernanny has spoken.... (General Chat) - Captain Bligh, May 17, 15:03:48
- if you think its wrong ... its wrong (n/m) (General Chat) - ghostof barry butler, May 17, 08:50:08
  - Profound (General Chat) - CWC, May 17, 08:53:02
    - why (n/m) (General Chat) - ghostof barry butler, May 17, 09:09:58
    - Interesting thread on gas (General Chat) - SCC 28, May 17, 09:05:26
      - Love those threads (General Chat) - CWC, May 17, 09:32:18
      - Saw that earlier (General Chat) - jamesward, May 17, 09:14:12
        
        No (General Chat) - CWC, May 17, 09:39:10
        
        though the price cap doesn't allow for anything like 10% (n/m) (General Chat) - watfordcanary, May 17, 11:56:14
        
        As I said. Price cap B2C is massively loss making (General Chat) - CWC, May 17, 12:10:47
        
        The margin built in is less that 2% and yes, most standard tariffs are loss making now (n/m) (General Chat) - watfordcanary, May 17, 12:42:20
        
        all SVTs I'd imagine (General Chat) - CWC, May 17, 14:06:20
        
        I'm going by an article in the Guardian on the makeup of the cap (General Chat) - watfordcanary, May 17, 15:16:07
        
        ah (General Chat) - CWC, May 17, 15:20:27
        
        And if we get back to where things were (General Chat) - SCC 28, May 17, 10:01:02
        
        depends... (General Chat) - CWC, May 17, 10:33:03
        
        Cheers (General Chat) - SCC 28, May 17, 10:52:38
        
        Not sure that the cap will but new fixed deals might (General Chat) - CWC, May 17, 11:23:01
        
        Right, ta (n/m) (General Chat) - jamesward, May 17, 09:53:19
  - What if he’s wrong? (n/m) (General Chat) - SCC 28, May 17, 08:51:11
    - Then he's wrong. (n/m) (General Chat) - protheroe fitzgibbon, May 17, 10:24:31
    - It's his truth, so right and wrong don't count (n/m) (General Chat) - paulg, May 17, 10:04:42
      - Can we stop banging on about Todd Cantwell please? (n/m) (General Chat) - jamesward, May 17, 10:41:07
      - Profound (n/m) (General Chat) - SCC 28, May 17, 10:06:39
        
        Sounds a bit snowflake to me (n/m) (General Chat) - Legacy Fan, May 17, 10:12:31
- Yes, no, maybe (General Chat) - Cardiff Canary, May 17, 08:47:16
  - ^^^ (General Chat) - CWC, May 17, 08:58:25

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