Am i being sceptical about price cuts?

logie28

With the last announcements of price cuts, condemned by many, am i being sceptical in thinking the energy companies have changed tactics?

I personally believe they could of slashed prices further, a view shared by many.

I think the new tactic is smaller cuts more frequently, with announcements at longer intervals.

Obviously when prices are raised by one, the rest follow almost immediately, with the latest cuts there was a delay with announcements after British gas, some announced and not coming into affect till march.

I believe once the new price cuts are all up and running, another energy company will announce small cuts, the others following slowly at staggered times.

The reason i believe they are doing this is to confuse and deter the savvy customers, we will hesitate into swapping companies as we will always be waiting for the " next round of price drops" the swap now period will be cloudy, some companies will be introducing new tariffs as some companies will be starting the new tariff at the same time as hinting further cuts to be imminent!!

A few customers will be on the ball and know the best deal at the best time, i think they are hoping a large proportion will simply give up and be stuck on a confusing tariff which will be superseded in a few weeks.



http://www.dailymail.co.uk/news/article-1142142/Energy-bills-set-fall-foreign-energy-firms-shamed-promising-cut-prices.html


http://www.google.com/hostednews/ap/article/ALeqM5i5TtajgUpSm7KY5jf-lCJGHBB-tAD96O2UE80

1carminestocky

There may be something in what you say. My personal take on it is they are basically just 'trying it on' with these pathetic cuts, to see what the Govt/regulator say/do. The Govt/regulator would appear to be saying/doing b*gger all. :mad:

logie28

The government/regulator applauded the price cuts!! whispering it was not quite enough, saying it was a step in the right direction. Not applying pressure though for further realistic cuts..

They are all in bed together, all scared of farting, not wanting to make the relationship uncomfortable.

After all they all seem to have a cosy relationship at the moment, scratching each others backs!!

markharding557

the total failure of the government to regulate anything is why i won't be voting for them any more

dogder

I find it suspicous how they manage to raise prices just before the period of heavy usage(winter) and make small cuts at the begining of the low consumption period(summer)...I spose that just plain good business?

Premier_2

logie28 wrote: »

...I believe once the new price cuts are all up and running, another energy company will announce small cuts, the others following slowly at staggered times...

...SSE’s chief executive, Ian Marchant, was less optimistic about the prospects of overall price reductions across the whole industry; particularly as wholesale energy prices were expected to increase in the summer of 2010 by about 10%; as he told the Energy and Climate Change Committee;

"I`m concerned that if the wholesale price increases, we might see an increase."

"I would have expected us to see another round of decreases [in energy bills] later this year or early next year, but objective analysis suggests that this might not happen." ...

https://www.homeadvisoryservice.co.uk/cml-confirms-mortgage-lending-at-record-low.html,https://www.homeadvisoryservice.co.uk/energy-firms-discuss-potential-price-cuts.html

Time will tell who is correct.

1carminestocky

When the energy fat cats were hauled before the Select Committee, did anyone ask them why the previous reason for high gas prices, namely the price of oil, no longer seems to be talked about?

Energyman_2

What is very interesting is that the price cuts were all actually very similar. In my area the price heirachy has been maintained as before cuts. We are still waiting for Npower - my prediction electricity 9% - gas 3%

Duffers4768

I spoke with E.On on Friday to query a recent bill and I asked the operator why they havn't reduced gas prices. He told me that it was because British Gas had only cut their gas prices by a small margin.I took this to mean that if BG's price reduction would have been greater it would have forced the others to follow with a similar or greater decrease.

Ofgem have no teeth at all when it comes to the "Big Six".

logie28

comical really isn't it.. lol,

open market with fair competition???

JCB2020

No reduction on Gas by either E.On or EDF - Strange since they both put them up didnt they!