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Energy Price hikes... taking the p***??!!
danthemoneysavingman
Posts: 1,403 Forumite
in Energy
Hi all, feel free to redirect me if this has been posed before but...
When wholesale prices dropped a year or so ago, the companies all said "we had to buy forward contracts at the higher prices, so we cant drop our prices now".
Now we must get to a point where they'll be selling energy they bought on the cheaper forward contracts when the prices were much lower... hence surely the fact whole prices are going up now is not relevant! We should be getting the benefit of the cheaper contracts they MUST'VE taken out when prices dropped 50% !!!
Anyone else got thoughts on this? Total rip-off Britain, as per usual... mumble mumble... daily mail etc.... but you get the point.:mad:
When wholesale prices dropped a year or so ago, the companies all said "we had to buy forward contracts at the higher prices, so we cant drop our prices now".
Now we must get to a point where they'll be selling energy they bought on the cheaper forward contracts when the prices were much lower... hence surely the fact whole prices are going up now is not relevant! We should be getting the benefit of the cheaper contracts they MUST'VE taken out when prices dropped 50% !!!
Anyone else got thoughts on this? Total rip-off Britain, as per usual... mumble mumble... daily mail etc.... but you get the point.:mad:
Friendly greeting!
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Comments
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danthemoneysavingman wrote: »
Anyone else got thoughts on this? Total rip-off Britain, as per usual... mumble mumble... daily mail etc.... but you get the point.:mad:
Rip off Britain - but our gas and electricity prices are generally cheaper than Europe!
The gas and electricity distribution companies make about £20 per household in profit - Tesco average over £200 per customer per year. So if the gas/electricity companies made no profit - what then?
It is world energy prices that determine what we pay.0 -
Reduce their pay like the rest of the economy? I hardly think it will lead to a loss of 'talent' as the jobs market is not exactly overflowing with opportunities. Even if they did go, they can be easily replaced.Rip off Britain - but our gas and electricity prices are generally cheaper than Europe!
The gas and electricity distribution companies make about £20 per household in profit - Tesco average over £200 per customer per year. So if the gas/electricity companies made no profit - what then?0 -
Reduce their pay like the rest of the economy? I hardly think it will lead to a loss of 'talent' as the jobs market is not exactly overflowing with opportunities. Even if they did go, they can be easily replaced.
Would you care to give some details? e.g.
Whose pay to be cut and by how much?
The effect that would that have on our annual bills?
If you look at, say, BG's full accounts you can get details on which to base your figures.;)0 -
The gas and electricity distribution companies make about £20 per household in profit
I would suggest it's more like £50 - £60 for the year. That's only the downstream business though. More profit is made upstream as well.
It's probably also better to use percentages when comparing profits to those of supermarkets as most people spend more on groceries than energy.
To 'danthemoneysavingman' I'd say that prices have already come down. They came down between February and April this year. That's all we're getting. Over the next year I'll be paying around 20% less than I paid between September 2008 and September 2009. Prices could always go back up again some time in the next 12 months of course, but I don't see any sign of them going up much at the moment.0 -
I would suggest it's more like £50 - £60 for the year. That's only the downstream business though. More profit is made upstream as well.
It's probably also better to use percentages when comparing profits to those of supermarkets as most people spend more on groceries than energy.
BG declare that their profit margin is 2%. So as the average bill is about £1,200 that makes £24.
Totally agree that the parent generating companies(Centrica in BG's case) make much higher profits. However as I said above, world energy prices determine their profits.
In any case they are prohibited from subsidising their distribution arm.
With Tesco their profit margin is approx 6% - profits last year £3.13 billion on sales of £54.3 billion. This year £3.4 billion on sales of £62.5 billion.0 -
They are all soulless,faceless,greedy companies all out for profit.
When i hear customer care or looking after you. I laugh then
my direct debit goes up even when i am in healthy profit
and i weep.Then a phone call or 6 to some idiot who has to
ask their supervisor to sort it out.They promise to call back
and then dont.Then you get a computer printed standard letter
saying we are sorry you had to complain etc etc.
I despair as do we all i feel.Governments dont stamp on
them because they all have shares in the companies .
Its win win for them and lose lose for us.0 -
Hey I can make it simple for you. Introduce a wage cap of 50K gross per annum. If these people are as smart they want you to think they are then there should not be a problem living off that salary. If they can't then they can !!!!!! off as there will be plenty of willing and more than capable replacements waiting in the wings for that kind of money.Would you care to give some details? e.g.
Whose pay to be cut and by how much?
The effect that would that have on our annual bills?
If you look at, say, BG's full accounts you can get details on which to base your figures.;)
I have no idea about the figures involved as I can't be bothered to look them up but taking a wild guess; if it saves 5 million quid a year and they have 5 million customers then that is a saving of £1 per year per customer. Bargain!0 -
if it saves 5 million quid a year and they have 5 million customers then that is a saving of £1 per year per customer. Bargain!
That'll help. I'll be able to keep my 3KW electric fire on for a whole 3 hours longer, yay! In the grand scheme of things, cutting salaries isn't what's needed.0 -
It's better than paying extra. In these days of austerity it amazes me how we have to accept the poorer taking pay cuts while those who are doing the cutting not having to endure the pain that everyone is supposed to be bear.0
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Rip off Britain - but our gas and electricity prices are generally cheaper than Europe!
The gas and electricity distribution companies make about £20 per household in profit - Tesco average over £200 per customer per year. So if the gas/electricity companies made no profit - what then?
It is world energy prices that determine what we pay.
Sorry I have to disagree with this, my son lives in France and he pays 3 pence where as I pay 13 pence for electricity.0
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