Why Haven't Prices Dropped?

[Deleted User]

crude futures have dropped again and are $55 a barrel

There is going to be a revolt in the uk if energy prices don`t fall

1carminestocky

kittie wrote: »

crude futures have dropped again and are $55 a barrel

There is going to be a revolt in the uk if energy prices don`t fall

You really mustn't use logic like that on here, kittie. :rotfl: The Hugh Jeegos of this board will come down on you like a ton of, err, bricks. :rolleyes:

WelshGandalf

reactor wrote: »

Wrong!!!!!!!!!!!

Of course our gas is priced in pounds its nothing to do with the dollara.
We stil produce most of our own gas and it is in pounds, failing that Euros.
No dollars in the EU pal we use the Euro.
We don't buy our gas off the Yanks you know :rotfl:

Oil is priced in $$. Gas in linked to oil. Ergo... but yes anyway, prices will drop Q1 2009 barring some miraculous rebound in the electricity wholesale market between now and then (highly unlikely).

Yes I work for an utility company, how else would I know so much, but I'm much more of a moneySaver than I am a poodle of the utility industry I'm just saying it as it is for the benefit of anyone who wants to see past the hysteria and look at the facts.

Gareth56

SCRIBES wrote: »

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??

Energy prices haven't dropped probably because members of the energy cartel here in the UK cannot decide by how much they will drop their prices by. Once they get together and decide who'll be the first the others will follow.

Mazio_2

Even though I agree that some thing needs to be done to clarify the utility companies margins plus more regulations and a tariff system thats designed to catch you out and majority of sales dept that try to con really.
I can remember when the goverment ran these and as far as I can remember they were useless ( strikes 3 day week even when we had plenty of supply) they are very top heavy and simply put could not organise a pee up at a brewery when it comes to running a company and dont forget theres a 5% tax they could remove. I dont think foriegn companies should have a major stake either though.

reactor_3

Mazio wrote: »

Even though I agree that some thing needs to be done to clarify the utility companies margins plus more regulations and a tariff system thats designed to catch you out and majority of sales dept that try to con really.
I can remember when the goverment ran these and as far as I can remember they were useless ( strikes 3 day week even when we had plenty of supply) they are very top heavy and simply put could not organise a pee up at a brewery when it comes to running a company and dont forget theres a 5% tax they could remove. I dont think foriegn companies should have a major stake either though.

I don't remember a gas strike. I seem remember energy prices being pretty cheap, plus they employed lots of people.
How about companies not run by the government such as the banks and pension companies?
Would the country be finiancially ruined now if the banks were government run?
Probably not. I think the odd brief strike would be better than the current finiancial
ruin. No system is perfect.
People could afford to buy a home then I believe, and it cost me 3p to get on a bus
not £3. (after waiting an hour).

Mazio_2

I agree the way it is now needs to be changed but nationalised companies were run poorly beurocratic red tape top heavy and cost the tax payers (us).
Gas cannot strike its illegal as its dangerous and they have to maintain pressure , do you remember Leyland, coal mines (Arthur Scargil) government made a complete hash of running them so closed them down sold them off washed thier hands of them now its not thier problem.
But things should not be left the way they are now either. So I totally agree with the argument that things need to change.

WelshGandalf

Gareth56 wrote: »

Energy prices haven't dropped probably because members of the energy cartel here in the UK cannot decide by how much they will drop their prices by. Once they get together and decide who'll be the first the others will follow.

Don't forget all the smaller suppliers who increased their prices at about the same time too!! They are all in it together!!!!!!! And to think they use the ridiculous excuse of their costs going up!!!!!!!!!!!!!!!!!!!!!! :rolleyes:

Seriously though, I don't know how to "fix" the market... I don't think any method is perfect. It seems that whenever something is owned by the government, people say a private company could do it better, and vice versa! At least private companies seem to be better at not losing personal data (excluding private companies working for the government, who tend to get chosen on offering the cheapest - ie worst service)

The current one isn't so bad as everyone makes out really, sure it's not perfect but I can't think of a better way of doing it. After all the suppliers don't have a direct influence on the price of oil which feeds through to their prices and has been the main upwards driver of prices. I was reading an old article not too long ago, written about 2001, and they were modelling carbon emissions, saying that the highest oil prices would go was $30 a barrel before returning to their long-term average of $20 They got to almost $150 a barrel earlier this year. That's pretty much why gas & elec it was cheaper back in the day.

reactor_3

Yes whilst nationalised companies might have been a little less efficient, once private companies get their little cartels going they drive prices through the roof to 'as much as
the market will bear'.
If gas was nationalised we would not be paying these high prices.
Same goes for oil, no more than $30 a barrel.
Bring back Scargill

Mazio_2

The problem with an essential commodity is there are not true market forces e.g. we need this as apposed to want it so these forces are irrelevant, the only control (at present) we have is quantity really.

The controls of the price of these commodities are from source (out of the ground) usually from countries that only have this one major revenue stream so will always be controlled.

The system/tariffs in place at present in UK by the utility companies are very confusing and too complex this is to their advantage obviously and needs to be sorted for our sakes the amount of profit they make will also be creatively worked too their advantage (all companies do this). If they are inefficient we pickup the tab not their shareholders or the management.

How can you not make money from this unless you are totally incompetent? The question is how much and what you do with it.

I actually thought Arthur was a working class hero (when he wasnt on strike).