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MSE News: Ofgem warning over long-term energy costs

edited 30 November -1 at 1:00AM in Energy
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MSE_GuyMSE_Guy MSE Staff
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edited 30 November -1 at 1:00AM in Energy
This is the discussion thread for the following MSE news story:

"The energy watchdog today warned electricity and gas may become unaffordable for many households ..."

Replies

  • Is Ofgem now the regulator on behalf of the energy industry? Frighten the public about long-term prices and supply and they will not carp about the vastly overflated pricing that is being applied now.
    Who's the consumer watchdog now?
  • CardewCardew Forumite
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    It has predicted average household bills could jump during the decade as much as 25% - to nearly £2,000 - without radical moves (see the Cheap Gas & Electricity guide).

    Seems to me that is unduly alarmist as well as inaccurate.

    The average UK customer in UK apparently uses 20,500kWh gas and 3,300kWh electricity.

    For that consumption in my area(Midlands) paying by Direct Debit the cheapest tariff costs £894 pa and even British gas standard tariff is £1,140.

    You would be hard put to pay more than £1,200 pa. So even if that figure rose by 25% in the next 10 years, that would mean paying £1500 pa.

    Frankly after the horror stories we have read about future energy prices, to have a forecast of only 25% over the next 10 years comes as a relief!!!!
  • Premier_2Premier_2 Forumite
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    Is Ofgem now the regulator on behalf of the energy industry?
    Ofgem is, as it always was, the Office of the Gas and Electricity Markets.

    Their role is quite varied and involves promoting competition within the energy markets as well as regulating the monopoly companies.
    Other activities include ensuring sufficient supplies (as per this article) and curbing climate change (from the energy industry)

    Who's the consumer watchdog now?
    Well, following the disbandonment of energywatch some years ago, that'll be consumer focus, who was said to be formed by merging the activities of energywatch and postwatch (quite a strange combination!)

    However, seeing the demise of local post offices over the past couple of years, don't expect too much action from consumer focus over energy matters ... but the energy industry doesn't seem as bad as our postal service at present.
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  • Yes once again OFGEM argueing for higher prices, it's disgusting, nobody else is saying this, nobody in Europe, OFGEM should be wound up as it is in the pocket of the Energy companies.

    Note no mention of the current enerrgy companies overcharging!!
    Toffs laying into the less well off? Surely not!! :naughty:

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  • Fire_FoxFire_Fox Forumite
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    Energy already is unaffordable for many single person households. Electric heating is three times the price of gas heating, if you add in a low income or benefits it's all too easy to end up in fuel poverty. And not having elderly people or children in the household means we aren't vulnerable.
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  • PennyForThem_2PennyForThem_2 Forumite
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    If it was easier and cheaper to install alternative energy sources I would do it like a shot.
  • magyarmagyar Forumite
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    Cardew wrote: »
    You would be hard put to pay more than £1,200 pa. So even if that figure rose by 25% in the next 10 years, that would mean paying £1500 pa.

    And as a side note they don't say whether inflation is taken into account. If you assume an average of 2% inflation for 10 years, then that accounts for a 20% rise by itself!

    And actually prices have roughly doubled over the last 10 years, so in fact they're saying that the next ten years will be half as bad as the last ten!
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  • It is a hopless cause because the those likley to be the next government are the ones who started all this mess in the first place:(,labour just made it even worse by reducing regulation:mad:
  • C_MababejiveC_Mababejive Forumite
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    http://www.guardian.co.uk/business/2010/feb/03/energy-bills-unaffordable-system-overhaul

    The Headline should read "OFGEM finally admits it has failed..."

    Remember the days of the British Gas Corporation and its electrical counterpart, The Central Electricity Generating Board.

    Everything was oh so simple...one number to ring,one concern responsible for gas,one for electric. Subsidised and special offers for consumers,a fully integrated gas and electric generation,transmission,and supply industry.

    What do we have now? A massively fragmented industry,all sold off for corporate profits and many owned by non UK concerns. They cannot invest in infrastructure purely because they have no security,must prioritise shareholders and are hamstrung by OFGEM policy which dictates how much they can spend,reviewed periodically,and inevitably cut at every review. A recipe for disaster. Meanwhile in OFGEM quangoland,they help themselves to fat pay packets and fat pesnion allowances whilst holding directorships in other private companies,thus ensuring that they make even more money.

    And what does OFGEM do? tell us they we face higher bills and that energy producers must invest....as if it all has nothing to do with OFGEM when,in fact,it is THEY who have brought about the whole situation.
    They even lied to us. A few weeks ago in the bad weather,they told us how secure energy supply was despite several balancing alerts being issued. Now that crisis has passed,they admit that in fact there is a crisis.
    Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..
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