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

AstarothCY

PrinceGaz wrote: »

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

There are several reasons, whether they are good or not is a different question.

PrinceGaz wrote: »

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).

Can you provide a source for what you're saying? I mean specific data for the length of time it takes energy companies to respond to oil prices. I very much doubt that British Gas bought 9 months' worth of oil back in July. That would be absolutely moronic of them, and I know they aren't stupid because they've managed to rob us blind these past couple of months. My guess is the lag is about 1 month, but really unless we have specific data on this then we can't say either way.

PrinceGaz wrote: »

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?

There is such a thing as corporate ethics, although it is quite obvious that this particular industry has completely forsaken the concept.

PrinceGaz wrote: »

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.

I understand full well WHY they are doing it, and realize that these companies' goals are purely capitalist. However, what I was asking was: what is the OFFICIAL reason for this situation? Have these companies said anything? Are they just keeping quiet? I'm just interested to see what sort of lies they are willing to feed us, but more importantly what lies customers are willing to gobble up.


I'll repeat what I said earlier. Write your MP and tell them to do something about this situation. If you think you aren't being robbed blind, you are wrong. If you realize that you are being robbed blind, but still side with the energy companies, then something must be wrong with your head.

alared

It`s pretty obvious what these greedy utilitiy companies will do.

They will make a SMALL cut at the end of the winter period,which will in no way reflect the massive rises that they`ve already inflicted.

Oh, and don`t think the government is too concerned about these high tariffs because they are clawing 5% VAT on every £

Lynsey

I agree about profiteering during the winter months, they are maximising profits. I can afford it and won't go cold, but it is disgusting that others may suffer, it's disgusting that in a country such as this people will suffer. I'm waiting for the news where someone actually dies because they can't afford to stay warm, God forbid it doesn't happen, but if it does it will be a disgrace.
I've thought for ages now, probably wrong again, but I would like to see certain types of businesses run by the goverment and prices controlled. If say they ran an utility company, others would have to compete with the prices set. The same thing could be done with other essentials like say food, cover all the basics and create employment.

Off my soap box now, hope it's a mild winter.

Lynsey

alared

If the big six were really competing,which is what they are supposed to do otherwise it`s a cartel,they should be slashing prices to attract more market share.

What we have is a merry-go-round, where they have at least 20 different tariffs, and each one in turn, brings out a new one to put them top of the comparison sites tables to encourage people to switch.
They also pay these sites a fat fee of at least £50 for every gullible punter that changes supplier.

adprob

What we have is a merry-go-round, where they have at least 20 different tariffs, and each one in turn, brings out a new one to put them top of the comparison sites tables to encourage people to switch.
They also pay these sites a fat fee of at least £50 for every gullible punter that changes supplier.[/QUOTE]


not strictly speaking true...at least one of them charges the same rates across most of their tariffs (excluding fixed/online) but with different bolt ons

Cardew

AstarothCY wrote: »

If you think you aren't being robbed blind, you are wrong.

The earlier part of your post was, quite reasonably, querying what price energy had been 'bought forward' viz:

Can you provide a source for what you're saying? I mean specific data for the length of time it takes energy companies to respond to oil prices. I very much doubt that British Gas bought 9 months' worth of oil back in July. That would be absolutely moronic of them, and I know they aren't stupid because they've managed to rob us blind these past couple of months. My guess is the lag is about 1 month, but really unless we have specific data on this then we can't say either way.

Well to reach the conclusion about us being 'robbed blind' you presumably know the answer to the questions you posed? - despite you stating "we can't say either way" So could you please tell us the answers?

Despite much of the ranting on this forum, I have not seen any MP or informed organisation state that the Utility companies are currently charging too much for Energy.

What they have been doing, is(correctly) applying pressure on the Utility companies to ensure that they do reduce prices soon.

Without that pressure it is a racing certainty that the Energy companies will delay price cuts and they will not reflect the full reduction in wholesale prices.

AstarothCY

Cardew wrote: »

Despite much of the ranting on this forum, I have not seen any MP or informed organisation state that the Utility companies are currently charging too much for Energy.

What they have been doing, is(correctly) applying pressure on the Utility companies to ensure that they do reduce prices soon.

What's the difference? I don't understand what point you're making. If they're pressuring them to reduce prices, then that's because they're charging too much.

Besides, you're wrong.

http://www.theyworkforyou.com/debate/?id=2008-12-17a.1088.6

Cardew

AstarothCY wrote: »

What's the difference? I don't understand what point you're making. If they're pressuring them to reduce prices, then that's because they're charging too much.

Besides, you're wrong.

http://www.theyworkforyou.com/debate/?id=2008-12-17a.1088.6

I suggest you read your quote again! and read the Deputy PM's reply

The MP has asked a question and urged the Government to do everything to ensure prices are reduced. Where has he given any figures/statistics etc to say prices are currently too high?

As I said, pressure being applied to ensure prices will be reduced and Ms Harman' reply keeps up that pressure.

The point I am making is that the position of the companies is that they cannot reduce prices now as the energy they are now supplying was bought ahead at higher prices.

I have no idea if that is accurate or simply an excuse, but I have seen no serious claim or proof that it is incorrect. All of the bosses of the Utility companies gave evidence to the recent Parliamentary Committee on Energy and the findings of that Committe(and the Ofgem inquiry) was that there was no cartel and not excessive profits.

So where is your evidence that we are being robbed blind? Have you now found some proof since stating that "we can't say either way"?

1carminestocky

Cardew wrote: »

Despite much of the ranting on this forum, I have not seen any MP or informed organisation state that the Utility companies are currently charging too much for Energy.

A post as puzzling as it is suspicious.

https://www.google.com

:rolleyes:

1carminestocky

His attack on the energy companies was echoed by MPs of all parties across the north and north-east.

West Aberdeenshire and Kincardine Liberal Democrat MP Sir Robert Smith said: “The energy companies should act now. The cold weather is with us now and people need more than the promise of future cuts when winter is over.

“The companies can see perfectly well what is happening with prices.”

SNP energy spokesman Mike Weir, MP for Angus, said: “Thousands of Scots are facing a miserable winter with excessive bills for gas and electricity.

“The companies were quick enough to put up their prices but are not bringing them down in line with recent falls and they must take action immediately to reduce prices and give some relief to hard-pressed customers.”

Highland Tory MSP Mary Scanlon said with oil prices about a third of what they were few months ago and an “economic crisis with people facing job losses and debts it is wholly selfish of energy companies not to pass on the reductions to customers”.

She added: “The energy companies are taking cruel advantage of their almost monopoly position.”

Took less than 30 secs to find these using google, Cardew. You should try it, it's a great search engine.