I do Love the Energy Companies

DorsetDude

DorsetDude

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No surprises today when it was revealed that the 40% drop in the price of wholesale gas hadnt been passed on to consumers. 1% to 5% at some point in the future. Wow. Praise the Lord!

They'll be announcing their literally billions of pounds worth of half yearly profits soon and and saying they cant lower prices due to investment in infrastructure and/or theyve "already bought the gas at the higher price". Yeah, yeah, course you have.

What a shower of ****s.

End of rant.
 
I saw some bloke from some energy company or other on the news at ten last night saying they couldnt drop the price because the gas we were using now was purchased several years ago, scuse me but firstly as soon as the wholesale price goes up the cost to us the customers goes up so why doesn't it go down as soon as the wholesale price drops, and secondly, what big business does a deal to stock up on its raw ingredients/products when theyre at an all time high.surely they employ people to search the market for the cheapest supplier.
 
chris954 said:
I saw some bloke from some energy company or other on the news at ten last night saying they couldnt drop the price because the gas we were using now was purchased several years ago, scuse me but firstly as soon as the wholesale price goes up the cost to us the customers goes up so why doesn't it go down as soon as the wholesale price drops, and secondly, what big business does a deal to stock up on its raw ingredients/products when theyre at an all time high.surely they employ people to search the market for the cheapest supplier.
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Agree entirely. Its all codswallop. Where are they storing all this gas they bought years ago? In a cardboard box? I feel a meme coming on

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In their defence...

1 - They do commit to buy energy in advance, so while they don't physically have the gas they will have agreed to buy it at X price.

2 - They are no different to the government - most tax hikes take place straight away while reductions are always in the future, or fuel companies where prices seem slow to come down.

3 - And I think this is very important - Labour plan to freeze prices if they get into power in May. So if they reduce prices too much AND then the price goes up, they will be tied to making less profit or even a loss (and so affecting infrastructure). If they keep prices artificially high then when they freeze it will sort of level out say in 2017

That said, I am sceptical as to point 1, and there should be a greater transparency. I am not a fan of nationalisation, as we saw in the 70s the apathy and attitude of these types of services, competition drives performance - but I think there is a case to at least seriously look at having 1 energy company run by the government but 'outsourced' so that the leaders and employees can earn big bonus by hitting performance metrics and service delivery, without a return to endless tea breaks and job for life attitude of the past.
 
Which magazine has done a check on the wholesale price since 2009, I think, & how the rise & fall has been passed on to us.

Unsurprisingly, they found that last years bills should have reduced by £146, average, & they suggested the same should happen this year.

The gas companies have gained to the tune of £2.9bn, by NOT following the wholesale price!
 
cambsno said:
In their defence...
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They don't have a defence, their practices are indefensible.

1 - They do commit to buy energy in advance, so while they don't physically have the gas they will have agreed to buy it at X price.
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So presumably the same ought to apply when wholesale prices are low, but we never see those filtering through do we.

2 - They are no different to the government - most tax hikes take place straight away while reductions are always in the future, or fuel companies where prices seem slow to come down.
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The government are hardly a role model for anyone to aspire to and at least with petrol diesel, it may have been slow but at least it has come down nearly a third in price since its peak.

3 - And I think this is very important - Labour plan to freeze prices if they get into power in May. So if they reduce prices too much
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Excuse me while I p&*ss myself laughing for moment.

AND then the price goes up, they will be tied to making less profit or even a loss
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Sorry my eyes are watering from laughter now
 
To be fair (unlike them), gas (for instance) is a futures market....though a lot less of a gamble than other futures.
 
So something that almost every household in the country has no other option than to pay up extortionate sums for is run based on a futures market. What a great idea. I wonder if a capitalist thought that up.
 
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