Why Haven't Prices Dropped?

SCRIBES

Petrol prices have dropped below £1 now - so why haven't gas & electricty prices dropped? I thought they were linked to the price of petrol??

1carminestocky

Only when it's increasing, I believe...

dfh4np

If you dont let them make huge profits there might be power cuts you know, as they have to buy it in advance they might just not buy enough.

dfh4np:eek:

Curley

So if they buy in advance, prices should come down soon now oil prices have come down?

dfh4np

Your forgetting about the massive investment they have made in the gas storage network in the last 20 years to make us self sufficient, any correlation in their rising massive profits and rising unit pricing is merely coincidental.

The utility companies are the only big companies who have not been exposed during the current credit crunch and should be applauded for not needing the government to give them a kick up the !!! to help those in fuel poverty.

Kind a makes you proud to be customer really.

1carminestocky

LOL! I like your style dfh4np!

1carminestocky

Curley wrote: »

So if they buy in advance, prices should come down soon now oil prices have come down?

I'm afraid not. Didn't you know that the energy companies actually don't operate in our universe, they have their own parallel one where theories like that are far too simplistic and sensible and viewed with disdain by the powers that be.

[Deleted User]

they have to start coming down soon.

I know that the £/$ is less but crude is now < $60 and came down by $3 overnight

Cardew

dfh4np wrote: »

Your forgetting about the massive investment they have made in the gas storage network in the last 20 years to make us self sufficient, any correlation in their rising massive profits and rising unit pricing is merely coincidental.

The utility companies are the only big companies who have not been exposed during the current credit crunch and should be applauded for not needing the government to give them a kick up the !!! to help those in fuel poverty.

Kind a makes you proud to be customer really.

Your humour is appreciated.

However on a more serious note, why should the Utility companies be coerced into 'helping those in fuel poverty'.

These are commercial companies, not social welfare organisations.

If it is deemed their profits are excessive,(and it is not the point of this post to determine if that is a valid argument) then tax them or take action against the company.

If people suffer from 'fuel poverty' then it is the government's task to sort out the problem. However they abdicate their resposibility, pass the buck to the utility companies who simply get their other customers to cross-subsidise the social tariffs.

Why not coerce Tesco and Sainsbury - who have greater profit margins than the Utility companies - to provide free food for the needy?

Or the Banks to provide some free cash - oh I forgot - the banks need money from the Government!

1carminestocky

If a private organisation is granted a licence to supply an ESSENTIAL commodity to potentially the WHOLE of the UK then IMO it also must take on board it's responsibility to those in fuel poverty and other vunerable members of its customer base. Anything less is an dereliction of its duty and smacks of them wanting all the upside (i.e. they are selling something everybody NEEDS as opposed to merely WANTS) and none of the downside (i.e if you are supplying a commodity everybody needs, then there will be those who require help).

SCRIBES

kittie wrote: »

they have to start coming down soon.

I know that the £/$ is less but crude is now < $60 and came down by $3 overnight

See BBC news link -
Energy prices 'could fall soon' :rolleyes:


http://news.bbc.co.uk/1/hi/business/7724218.stm