Hypothetical People Power

MrT_5

Just a hypothetical question. If everyone targeted one company such as Powergen and left them, surely they would have to reduce prices or die? Once they reduced prices, that would make the others follow suit or they would die.

I chose Powergen because I am with them but you could pick any company. Emails and calls to all your families and friends and we could have a revolution on our hands or am I living in cloud cuckoo land?

Be gentle.

Cardew

It is not the power distributers who are making the fat profits and some firms have already gone out of business. The cost of the gas(in particular) & electricty on the wholesale market has soared.

If any company could consistently provide the cheapest prices we would all switch to that company; and it would be greatly to their benefit. As it is you will find that there is a continual leapfrogging of tariffs

Forcing companies to 'die' will simply reduce the competition.

MrT_5

Cardew wrote:

It is not the power distributers who are making the fat profits and some firms have already gone out of business. The cost of the gas(in particular) & electricty on the wholesale market has soared.

If any company could consistently provide the cheapest prices we would all switch to that company; and it would be greatly to their benefit. As it is you will find that there is a continual leapfrogging of tariffs

Forcing companies to 'die' will simply reduce the competition.

That's a no then or do you work for Powergen? Only joking but what competition?

paul_h

Competition is still being stifled in the UK.

Most, if not all of the big six domestic distributors in this country are also energy wholesale producers as well. Despite the claims that they are struggling to make a profit from their domestic sales operations, blaming high wholesale prices, they continue to make record profits year-on-year from their own wholesale operations.

It's a trend which started in the oil industry, keeping wholesale prices high thus maintaining profits, whilst running the retail side at little or no profit - making sure that smaller independents with no production facilities cannot survive.

A bit off topic, but BT now operate the wholesale telecoms market in the same way - their retail prices for line rental products leave little room for a third party reseller to compete with BT on price and make a profit.