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

logie28

beingjdc wrote: »

Yes, we did. And now we don't.

What I'm saying is.. when the £ was strong .. it did not matter.. because we bought in advance..

So my thinking is,, when the price was at its height so was the £ against the $, so really we should of got a real discount even at the height of the market .. with the £ being so strong.

Today's barrel prices reflect the price of 2004-05 when the £ was pretty much the same against $ price as now.

So why , oh why are we still making excuses...

Cardew

logie28 wrote: »

Today's barrel prices reflect the price of 2004-05 when the £ was pretty much the same against $ price as now.

That is not so!

The rate today is £1 =$1.49

From 01 Jan 2004 to 31 Dec 2005 the mean average rate for those 2 years was $1.83 which is 18.6% higher than today.

The lowest rate during that period was $1.71(14.8% higher) and the highest rate was $1.96(30.9% higher)

Incidentally the average oil price was $37.66 in 2004 and $50.04 in 2005.

1carminestocky

Cardew wrote: »

That is not so!

The rate today is £1 =$1.49

From 01 Jan 2004 to 31 Dec 2005 the mean average rate for those 2 years was $1.83 which is 18.6% higher than today.

The lowest rate during that period was $1.71(14.8% higher) and the highest rate was $1.96(30.9% higher)

Incidentally the average oil price was $37.66 in 2004 and $50.04 in 2005.

Talking of percentages, how much cheaper was our gas and electric the last time we saw the price of oil this low, i.e. 2005? 150%? 200%? There's something seriously wrong somewhere but being as this board is crawling with (for want of a better word) energy company shrills/paid apologists, I'm assuming that's why it's so incredibly out of kilter with the feelings of the general public.

Geoffo_M

I believe that we do have a cartel now - in all but name. There will be no proof (incriminating emails etc) that the regulator can get his hands on. There are too few energy companies to be effectively competitive. In the beginning there were several small companies. I remember I moved from BG to Amerada, and I got a good deal as prices were very competitive. Then along came Powergen who swallowed them up. Many other small energy companies were taken over as well, and prices gradually stagnated. Then Eon took over Powergen, and we have the sorry state of affairs we have today - NO effective competition at all, and we all suffer.

Cardew

Geoffo_M wrote: »

I believe that we do have a cartel now - in all but name. There will be no proof (incriminating emails etc) that the regulator can get his hands on. There are too few energy companies to be effectively competitive. In the beginning there were several small companies. I remember I moved from BG to Amerada, and I got a good deal as prices were very competitive. Then along came Powergen who swallowed them up. Many other small energy companies were taken over as well, and prices gradually stagnated. Then Eon took over Powergen, and we have the sorry state of affairs we have today - NO effective competition at all, and we all suffer.

When gas and electricity was privatised there were dozens of companies who jumped in to make a killing.

Well the majority of them simply found that it was too competitive and they couldn't make a decent return - so got out - most having suffered losses.

A few 'niche' firms like Ebico and UW remain. Ebico being non-profit making and catering for low users and UW by practising unusual sales techniques.

I know it is unpalatable to hear, but it is still a fact that companies make profits measured in £tens per customer - and that includes the generating side as well as distribution arm. Look at the combined profits for Centrica and British gas if you want some facts(and a sizeable element of Centrica's profit was not generated in UK)

Before the usual hysteria hits this thread, I am not saying that prices will not have to come down if wholesale energy prices remain low - of course they will.

However somehow the impression is given that Utility company profits are the reason for our high prices - and they ain't.

It is strange that there isn't an outcry against Tesco/Sainsbury/Asda who make far higher profits from us.

Dannii_B

Cardew wrote: »

It is strange that there isn't an outcry against Tesco/Sainsbury/Asda who make far higher profits from us.

Exactly, no-one complains to tesco/asda etc. when the price of bread goes up significantly and when they rake in profits from just about every other commodity on earth, but seeing as everyone has to buy gas/electricity then the energy companies are the spawn of satan - everyone has to buy bread as well, but don't worry, the supermarkets are allowed to make profits

mech_2

1carminestocky wrote: »

I'm in no way an expert. In that regard we are alike. Where we differ is I don't proclaim to be an expert and attempt to belittle people who don't 'get' my oh so logical argument (you know, the 'logical' argument that keeps having the goalposts removed). :rolleyes:

Well that's precisely the point. You do belittle anyone who disagrees with you, every chance you get. Hence the "self proclaimed expert" nonsense. That's your phrase, not mine.

I haven't claimed to be an expert. I do claimed to have looked at the facts. Easily verifiable facts at that. No expertise required except the ability to read English and numbers.

Eagle15

Geoffo_M wrote: »

I believe that we do have a cartel now - in all but name. There will be no proof (incriminating emails etc) that the regulator can get his hands on.

No evidence of a crime is not evidence of no crime.

PrinceGaz

There are certainly a few people posting on this (and similar) threads who support the energy companies keeping prices high at least until next next spring. What they post is so blatantly biased it is beyond belief, that I wonder if some are actually employed by the energy companies themselves, and are effectively PR people pushing out messages designed to undermine the desire for a price-cut for customers.

Oil is now under US$50 per barrel. I don't care how many months in advance the gas was bought, oil has been falling steadily in price for many months since the credit-crisis and worldwide-recession kicked in. The cost of the expensive gas bought months in advance can be mixed with the very cheap gas bought now so as to reduce the amount consumers pay. Even if that means it takes longer to reduce prices, a 20% or so reduction now, and another 20% reduction once the expensive pre-bought gas has been used up, would seem reasonable.

1carminestocky

PrinceGaz wrote: »

There are certainly a few people posting on this (and similar) threads who support the energy companies keeping prices high at least until next next spring. What they post is so blatantly biased it is beyond belief, that I wonder if some are actually employed by the energy companies themselves, and are effectively PR people pushing out messages designed to undermine the desire for a price-cut for customers.

Oil is now under US$50 per barrel. I don't care how many months in advance the gas was bought, oil has been falling steadily in price for many months since the credit-crisis and worldwide-recession kicked in. The cost of the expensive gas bought months in advance can be mixed with the very cheap gas bought now so as to reduce the amount consumers pay. Even if that means it takes longer to reduce prices, a 20% or so reduction now, and another 20% reduction once the expensive pre-bought gas has been used up, would seem reasonable.

Spot on. This is what I've been saying for a while now and I get abuse from certain quarters for my actions. It's clear to me that some members of this board have been trying to run it as some sort of 'cartel', attempting to suppress all talk of rip-offs, overcharging etc etc. HIGHLY suspicious and not exactly subtle. Many of these posters post during traditional office hours as well..