MSE news: Could energy prices soon fall?

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"There are hopes energy prices could soon fall, following British Gas Residential's announcement today of an 80% profits increase for the first half of 2009.

Price comparison website uSwitch.com says the firm is in a good position to become the country's cheapest supplier after recording profits of £299 million ..."

Read the full story:
Could energy prices soon fall?

Premier_2

Since when did huge profits ever mean price reductions for punters?

Perhaps the Sids will hold a vote at the next christmas party over whether they should forego their bubbly (and divi's) in exchange for lower prices to the punters?
No guesses which way they'll vote though!

SwanJon

Supppose the logic could be along the lines of..
We currently make £10 profit per customer and have 100 customers (£1000 profit)
If we reduce prices, will we gain enough more customers to increase overall profit- e.g.£9 profit per customer for 120 customers = £1080 overall.
(Huge oversimplification and ignores every other variable, but you know what I mean)

milliemonster

Yes but as always they will use the excuse that they can't reduce prices for the consumer as they have to invest the money into greener energy for the future or some other claptrap along those lines