VAT to be removed from UK electricity bills from Oct 1st

[gagzus 25,752]

 

[gagzus 25,752]

Now the only problem is; are they going to stop companies from just raising their baseline pricing? Because that happened when companies had “VAT relief” during the summer on children’s prices for places like cinemas and theme parks. They just raised their prices to what it was with VAT temporarily and then lowered it again.

[weed 79,386]

all I think of is Fallout 4  but I pray for you 

[gagzus 25,752]

9 minutes ago, weed said:

all I think of is Fallout 4  but I pray for you 

Never played so care to elaborate for us diva? 

[onTheBrink 1,833]

This is great and I love Andy Burnham, but I feel like this lets suppliers off the hook. We've forgotten how much prices jumped at the start of the Ukraine War and we're just used to being extorted by this point.

[gagzus 25,752]

2 minutes ago, onTheBrink said:

This is great and I love Andy Burnham, but I feel like this lets suppliers off the hook. We've forgotten how much prices jumped at the start of the Ukraine War and we're just used to being extorted by this point.

The thing I always find annoying personally is that proportionately; Gas is far more expensive than electricity. Especially in the winter, so the VAT deserved to be removed from Gas not Electricity imo. Most people don’t have problems keeping electricity on in their homes, but they sure do find it hard to heat them. Especially now we’re projected to have even colder winters to match our new hot summers 

[onTheBrink 1,833]

Just now, gagzus said:

The thing I always find annoying personally is that proportionately; Gas is far more expensive than electricity. Especially in the winter, so the VAT deserved to be removed from Gas not Electricity imo. Most people don’t have problems keeping electricity on in their homes, but they sure do find it hard to heat them. Especially now we’re projected to have even colder winters to match our new hot summers 

Exactly. And I just checked my own electricity bill and the VAT is £1.36. So while it makes a great headline, I don't think it's going to do much to alleviate people's suffering. Especially people who are on budget plans rather than pay as you go.

[gagzus 25,752]

Just now, onTheBrink said:

Exactly. And I just checked my own electricity bill and the VAT is £1.36. So while it makes a great headline, I don't think it's going to do much to alleviate people's suffering. Especially people who are on budget plans rather than pay as you go.

Precisely. Also, private companies aren't restricted to just raising their base prices to compensate for the lack of VAT money. Like I said at the top, many companies already did it for child places and tickets that had temporary VAT relief like Alton Towers infamously raised their child prices by a few £ to compensate and then lowered them once summer holidays were over.

So I wouldn’t put it past energy companies to do the same.

[onTheBrink 1,833]

Just now, gagzus said:

Precisely. Also, private companies aren't restricted to just raising their base prices to compensate for the lack of VAT money. Like I said at the top, many companies already did it for child places and tickets that had temporary VAT relief like Alton Towers infamously raised their child prices by a few £ to compensate and then lowered them once summer holidays were over.

So I wouldn’t put it past energy companies to do the same.

I wonder what economic crisis they will manufacture to justify this!

[gagzus 25,752]

1 minute ago, onTheBrink said:

I wonder what economic crisis they will manufacture to justify this!

Most likely something will happen where they raise Gas prices to compensate. So that £1.36 you’ve just saved will probably be shoehorned into your gas price most likely.

[onTheBrink 1,833]

1 minute ago, gagzus said:

Most likely something will happen where they raise Gas prices to compensate. So that £1.36 you’ve just saved will probably be shoehorned into your gas price most likely.

The predictability of the corruption 

[Bronco 28,288]

2 hours ago, gagzus said:

Most likely something will happen where they raise Gas prices to compensate. So that £1.36 you’ve just saved will probably be shoehorned into your gas price most likely.

Gas & electricity both have the price caps in place remember. 

The energy companies tend to keep the tarrifs outside of that competitive to encourage switching.

[Lucas 31,672]

Couple years ago Luxembourg reduced VAT by 1% and as a result all the companies increased their prices by 1%, then the next year the VAT % was increased by 1% again 

I hope the same doesn't happen in the UK, I'm not sure if prices can be increased at will but I hope not!

[Defmix100 7,234]

18 minutes ago, Lucas said:

Couple years ago Luxembourg reduced VAT by 1% and as a result all the companies increased their prices by 1%, then the next year the VAT % was increased by 1% again 

I hope the same doesn't happen in the UK, I'm not sure if prices can be increased at will but I hope not!

I don't even understand the increase though because they don't keep the VAT anyway unless there's loopholes so the reduction shouldn't affect their bottom line at all for a need to increase

[Lucas 31,672]

2 minutes ago, Defmix100 said:

I don't even understand the increase though because they don't keep the VAT anyway unless there's loopholes so the reduction shouldn't affect their bottom line at all for a need to increase

See that's the thing, there was no need to increase, but they just wanted to make more profit.