MSE News: British Gas profits could 'end price hike talk' 28 July 2010 at 9:57AM in Energy 15 replies 2.1K views

Former_MSE_Guy

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

"A price comparison site says talk of rises for households is now ‘premature at best and unjustifiable at worst’ ..."

Read the full story:
British Gas profits could 'end price hike talk'

bat-out-of-hell

Not one comment on this yet, now there is a surprise, considering the last thread re pre paymant customers.

Some had plenty to say then:cool:

PhylPho

Perhaps there'd be more comments if the topic was about the gutless regulator. . .

KimYeovil

Perhaps there is no comment because it is a garbage article with meaningless numbers. The writer should provide sufficient and necessary information before people can comment.

Butterfly_Brain

The utility companies should never have been privatised :mad:

C_Mababejive

Centrica are a successful company, a PLC and therefore trade in the open market.

British Gas prices are now amongst the lowest i the country and therefore we should applaud their success at providing value for money AND running a successful and profitable business which helps the economy and employs British people.

undaunted

:rotfl::rotfl:So, according to Kim (above), SwanJon and Cardew (in the link below)

£585 million profits for the first six months of the year – 98% ahead of last year is "meaningless", this does not constitute "big profits" or make them a wealthy company, and there is no room for any suggestion whatsoever that British Gas (or any other energy company) is profiteering (on pre payment meters or otherwise)

That's me clear then!

http://forums.moneysavingexpert.com/showthread.php?t=2598695&page=4

:money:

KimYeovil

Yes, 585 million pounds profit is pretty small. Is innumeracy another of your blind spots?

No idea where my previous post went (probably another thread) but, yes, doubling the profit from £3 per month to £6 per month on a £50 to £150 spend is relatively meaningless over the long term. How many businesses do you know work on such minute margins?

Please explain what the evidence is that shows British Gas is profiteering (as opposed to profit-making).

davidgmmafan

I agree with most of the above post, its an easy article to say the greedy so and so's are ripping us off but really would Nationalization somehow insulate the UK against rising worldwide demand for fuel? I doubt it.

Tariffs might be easier to understand, but some people never switch no matter how badly they are treated so customers must take atleast some of the blame. I do ahve concerns about the vulnerable and the needy as they are (in theory) least able to find the best deal and switch.

undaunted

KimYeovil wrote: »

Yes, 585 million pounds profit is pretty small. Is innumeracy another of your blind spots?

No idea where my previous post went (probably another thread) but, yes, doubling the profit from £3 per month to £6 per month on a £50 to £150 spend is relatively meaningless over the long term. How many businesses do you know work on such minute margins?

Please explain what the evidence is that shows British Gas is profiteering (as opposed to profit-making).

£585 million for 6 months, is hardly "pretty small", nor is up 98% on a year. British Gas obviously don't consider their profits meaningless (or even your subsequently watered down "relatively meaningless) or they wouldn't exist. Of course you're right in thinking I know of very few businesses who make those kind of profits

Profiteering http://www.businessdictionary.com/definition/profiteering.html
"Disproportionately large or grossly unfair profit, generated often through manipulation of prices, abuse of dominant position, or by exploiting a bad or unusual situation such as temporary scarcity. There is usually no governmental control over profiteering unless it involves illegal means."

It's grossly unfair in my opinion that some customers go without electricty & gas whilst energy company Executives & shareholders "fill their boots" to these levels. British Gas states on their website "As the nation's leading energy supplier, more people choose British Gas to supply energy to their homes than any other supplier." and are therefore I suggest still "dominant" in the market. Energy companies are of course often accused of manipulating figures, expoliting changes in wholesale markets, failing to pass on savings etc & of course Ofgem are about as much use as a chocolate fireguard when it comes to enforcing any breach of license conditions let alone fairness for individual customers

KimYeovil

Again, you haven't answered the question. Are you seriously suggesting that those who 'go without' are going to get by on an extra £6 per month? Stop writing nonsense. Your rubbish about manipulation betrays their incompetency if they are exploiting the system - why on earth would they choose to engineer such a small profit - they are clearly being very restrained with their greed.

Do you have any actual figures that would support your ridiculous assertion that the profit is not very small? Please explain why you think it is unreasonable.