MSE news: Energy firms told to slash prices by regulator

Former_MSE_Guy

This is the discussion thread for the following MSE news story:

"Energy regulator Ofgem has finally got tough with suppliers by demanding they cut household bills to reflect the falling price they pay for power.

Campaigners have been calling for price cuts for months because the wholesale prices the major firms pay for gas and electricity have slumped by around ..."

Read the full story:
Energy firms told to slash prices by regulator

Alias_Omega

Good news,

Though how long do they have to cut the prices.

Alias_Omega

MSE_Guy wrote: »

This is the discussion thread for the following MSE news story:

"Energy regulator Ofgem has finally got tough with suppliers by demanding they cut household bills to reflect the falling price they pay for power.

Campaigners have been calling for price cuts for months because the wholesale prices the major firms pay for gas and electricity have slumped by around ..."

Read the full story:
Energy firms told to slash prices by regulator

Did you know that your bottom link goes to some article about insurance prices.

1carminestocky

Recent pic of Ofgem Head Honcho getting tough:

fullstop

Nothing will happen, first off all there will be a "consultation" which will last about a year, then energy firms will appeal, leading to another delay and by the time that has finished energy wholesale prices will have risen so we will be back to square one.

kuczer2

fullstop wrote: »

Nothing will happen, first off all there will be a "consultation" which will last about a year, then energy firms will appeal, leading to another delay and by the time that has finished energy wholesale prices will have risen so we will be back to square one.

Agree with this - consumer just gets shafted once again while Energy companies make HUGE profits and still moan about their lot in life.

I personally think it is time for a cap to be put on the profits these companies can make above their actual costs - kind of like a variable rate mortgage rising and falling with the interest rate. This is an ESSENTIAL spend for everyone goodness sake! We are not talking about a luxury item here!

littletommytucker

If you get your calculator out... Those HUGE profits you talk about only equate to a 2% profit margin. What do you suggest they set the cap at? 1% ? 0.5%? Would you even notice that kind of reduction in your bill?

1carminestocky

littletommytucker wrote: »

If you get your calculator out... Those HUGE profits you talk about only equate to a 2% profit margin. What do you suggest they set the cap at? 1% ? 0.5%? Would you even notice that kind of reduction in your bill?

Conglomerate accounting? Your employer, Centrica, for instance, splits the gas exploration and gas retail businesses into 2 separate entities. Why? When one does badly the other does great. And vice versa. And profits are calculated after costs incurred running the business. Did you really need to pay HALF A BILLION POUNDS for a computer system that was reportedly so unfit for purpose that your company instigated court proceedings against the suppliers?

galba

It would be silly of the govt. to rock the boat at this stage. This time next year there will be lots of ex-ministers and senior MPs looking for comfy seats on the boards of all these utility companies .

mech_2

littletommytucker wrote: »

If you get your calculator out... Those HUGE profits you talk about only equate to a 2% profit margin. What do you suggest they set the cap at? 1% ? 0.5%? Would you even notice that kind of reduction in your bill?

That's odd because Centrica's results for the first half of 2009 show a 6.8% margin for British Gas Residential.

And Centrica's gas production arm made a bigger profit than that in addition.

icefall

Its about time too.

Hopefully someone in there ivory tower has noticed that the ordinary utility payer is suffering for the benefits of the execs who need their squillions each year to live on of course...