oil prices below $50 a barrel!! still no price cut!!

deanos

AstarothCY wrote: »

why is gas so expensive, and are gas prices at all tied to oil prices?

Gas prices were tied to oil prices when the price was going up, but now it seems as the price of oil has come down its nothing to do with oil prices :rolleyes:

icefall

deanos wrote: »

Gas prices were tied to oil prices when the price was going up, but now it seems as the price of oil has come down its nothing to do with oil prices :rolleyes:

:rotfl::rotfl::T

Peculiar state of affairs isn't it?!

mech_2

The wholesale price of gas is more expensive in winter because that is when it is in demand. The scaling of this seasonal cycle is determined by the oil price.

1carminestocky

deanos wrote: »

Gas prices were tied to oil prices when the price was going up, but now it seems as the price of oil has come down its nothing to do with oil prices :rolleyes:

You seem to have grasped the real concept of this 'theory', deanos! :money: I would imagine the energy companies are ruing the day they came out with their shiny new theory at the end of July :rotfl: . If you check out what the BG head honcho (Bentley be his name) was stating in the press at that time it's entirely clear that they believed that the price of oil would remain sky high for the foreseeable future, hence sustaining their ridiculous 'theory'. Oh dear. What to do now. I know, say nowt. That usually works. At least mech TRIES to justify the whole charade, so mucho respect for that.

logie28

its getting to the stage now , that people cannot be making excuses!!
I am sure prices drops will be "announced" in the new year, probably march when they kick in!!

Like to keep the seasonal link going i think, not to worry of the millions being overcharged!

AstarothCY

I'm writing my MP because this is just stupid.

Maybe Brits could take a hint from Greece and demand to be treated like people every once in a while.

logie28

Could some one on here who works for BG customer services possibly pm me with a direct number.

Every time i get through i usually end up talking to some one who is under trained who knows nothing, just the information on the screen!!

I would really like to talk to an expert who knows everything in response to my questions, nothing to mind boggling, like when are price cuts going to be officially announced, surely some one there has an idea!!

AstarothCY

I very much doubt they would tell you, but in case they do please let us know!

BTW if you want to get a direct number, try some smart googling. I'm not sure you will find one out there but I've managed to find some pretty incredible things on Google just by using the right search terms.

PrinceGaz

AstarothCY wrote: »

Sorry about this but I don't really have the time or patience to read through 8 pages of people arguing about energy.

Could somebody please succintly and honestly answer the following question:
Oil is now at below $40/barrel. Why have there been no electricity price reductions (official reasons)? Also, why is gas so expensive, and are gas prices at all tied to oil prices?

Although you might be expecting prices to come down now, there are several very good reasons why they cannot.

Firstly, the energy is bought several months in advance at expected future rates, so some of the energy we are using now was bought at very expensive levels before the price crashed. Even though they are now buying energy much more cheaply, they have to charge the highest price possible in case prices go back up (if energy prices don't go back up, then that's money in the bank and a larger dividend for the shareholders who will quite rightly support their policy).

Secondly, winter is peak demand time so passing on discounts now would be untenable as it would have a major impact on company profits. Reducing consumer prices now when they are using the most energy is madness. When energy is bought by the companies months in advance, regardless of how it is used, it makes sense to say that both gas and electricity are very expensive now and will remain so for the rest of the winter. If you were selling a product you knew people would buy regardless of the price, would you really want to cut the price just before it is in peak demand?

Instead of looking at how much we as consumers are paying, you should really look at it from the energy supplier's view, and it suddenly becomes very clear why what they are doing is the best way to ensure the company remains profitable and can pay out a large dividend to shareholders. Those companies aren't charities- their first and main goal is to make money, so what they are doing is entirely expected.

AstarothCY

never mind