People should not fix energy prices, the will drop in 2009

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As G&E follows the prices of oil, and oil has droped over 50% in price over the last few months, then the utility prices will follow.

As Gas is bought in advance we will not see this for now, but we sure will in 2009.

I don't think it was a good idea to fix your energy price.. Often people were charged for this per month on top of the bill. It seems now that you may be fixed into more expensive deals in the future..

When i was offered the deal, i was very against it..

Did anyone else pass on the offer or take any deals?
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  • melbury
    melbury Posts: 13,251 Forumite
    Name Dropper First Anniversary First Post I've been Money Tipped!
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    Yes, I bet the price will come as the warmer weather arrives!
    Stopped smoking 27/12/2007, but could start again at any time :eek:

  • Curley
    Curley Posts: 205 Forumite
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    melbury wrote: »
    Yes, I bet the price will come as the warmer weather arrives!

    And then go up again next autumn/winter when the cold weather sets in.
    This space is available to rent... :D
  • 1carminestocky
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    melbury wrote: »
    Yes, I bet the price will come as the warmer weather arrives!



    Great minds and all that.... :D
    Call me Carmine....

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  • reactor_3
    reactor_3 Posts: 1,044 Forumite
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    I think it is scandelous, I believe the gas companies are colluding to keep the prices high. I know for a fact that one gas company appears to have no scruples whatsoever.
    It did not take the gas companies 9 months to get their prices up did it?

    They say they are not making a lot of profit selling gas to us but that they make money on the wholesale side. But they are the wholesalers, so they are selling gas to themselves!! So they sell to them selves at a high price, making a huge profit and them pass on that price to us saying they are not makinig anything on it!!

    Something need to be done about it. Renationisation seems the best solution, we hever had these problems when it was natonalised did we?
    We never had all these excuses as to why prices were so high then did we?
    It is transparent to me that we are being massively ripped off.
  • BallandChain
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    reactor wrote: »
    They say they are not making a lot of profit selling gas to us but that they make money on the wholesale side. But they are the wholesalers, so they are selling gas to themselves!! So they sell to them selves at a high price, making a huge profit and them pass on that price to us saying they are not makinig anything on it!!

    I'm learning all the time on this forum. I didn't know the gas companies were in effect wholesalers selling to themselves? How does that work?
  • reactor_3
    reactor_3 Posts: 1,044 Forumite
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    I'm learning all the time on this forum. I didn't know the gas companies were in effect wholesalers selling to themselves? How does that work?

    Well I think that how it works anyway but one thing is for sure we are being fleeced.

    http://business.timesonline.co.uk/tol/business/industry_sectors/utilities/article3419628.ece
    "As the UK's third-biggest generator, RWE Npower makes most of its money from rising wholesale energy prices."

    So it is exactly as I said, it sells the gas to itself 'expensively' and then sells that on to us and says
    it is not making much money selling gas to us. It's a big con.
  • BallandChain
    BallandChain Posts: 1,922 Forumite
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    I'm still confused how it all works. I thought that the gas companies had put the prices up because they had to pay the higher wholesale price from a third party.
  • 1carminestocky
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    I'm still confused how it all works. I thought that the gas companies had put the prices up because they had to pay the higher wholesale price from a third party.


    Philip Wright (Sheffield University professor and described as one of the World's leading authorities on the energy industry) was on the recent Channel 4 Dispatches prog on the truth behind the energy companies and stated that, even if they claim to make very little profit on the retail part of their business, they actually make money on their exploration and wholesaling business so they can't really lose.

    Have to say, I am surprised the energy company apologists on here never mention this fact when they claim that the energy companies' profits are in no way connected to the high prices we pay. Strange....

    Anyway,the full episode can be seen again here (it's all explained at approx 9.20). Also check out the CEO of the Energy Retailers Assoc (paid apologists for the industry) at 19.00 and again at 25.00, 35.13 & see if he convinces you with his arguments, lol)

    http://www.channel4.com/video/brandless-catchup.jsp?vodBrand=dispatches-the-truth-about
    Call me Carmine....

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  • mech_2
    mech_2 Posts: 620 Forumite
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    reactor wrote: »
    "As the UK's third-biggest generator, RWE Npower makes most of its money from rising wholesale energy prices."

    So it is exactly as I said, it sells the gas to itself 'expensively' and then sells that on to us and says it is not making much money selling gas to us. It's a big con.

    "Generator" means they generate electricity. You don't generate gas in power stations. The above quote basically means RWE's electricity generation is subsidising their domestic gas prices.

    The only utility company with any degree of vertical integration in gas supply is Centrica. They produce something like 42% of the gas needed for their domestic customers. The rest (and supplies for business customers) they have to buy wholesale, like the other suppliers. But because Centrica doesn't have sufficient electricity generation capacity to sell a lot of surplus electricity on the wholesale market they aren't in any significantly better position overall than the other suppliers.
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