MSE News: British Gas boss defends energy price rises

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  • Plushchris
    Plushchris Posts: 3,592 Forumite
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    Totality wrote: »
    It is a good idea. It's exactly what should happen as it prevents people using the money for other things, which isn't the purpose.

    I've been saying that for ages. Maybe not paid straight to the supplier...It should be in the form of vouchers or something but not cash..
    Missing Tesco R&R since Feb '07 :A & now a "Tesco veteran" apparently! ;)
  • backfoot
    backfoot Posts: 2,700 Forumite
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    bikeman wrote: »
    According to my Scottish Power gas bill their breakdown of costs is:

    Wholesale energy cost 55%
    Delivery 18%
    Accounts and admin 18%
    VAT and govt obligations 9%

    I'd say that means a fair chunk is overheads not energy costs and in this day of online billing and call centres in India it's surprising that these are so high.

    Scottish Power have Customer Service Centres in
    Cathcart, East Kilbride, Warrington, and Caernarfon and Prepayment Customer Advisers in Blantyre and Warrington.

    They would be part of the 18% figure.
  • Cardew
    Cardew Posts: 29,041 Forumite
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    short_bird wrote: »
    "The Government can do more. Take the winter fuel payment [which gives £250 or £400 a year for those over 60]. We think that should be targeted on low incomes. "

    :eek::eek:

    Not a good idea.

    The reason why the WFP is given to every house with an occupant over 60 is that it cost less than it would to adminster a means tested benefit.(as stated in Parliament)

    It is now £200!
  • stewie_griffin
    stewie_griffin Posts: 1,099 Forumite
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    backfoot wrote: »
    Scottish Power have Customer Service Centres in
    Cathcart, East Kilbride, Warrington, and Caernarfon and Prepayment Customer Advisers in Blantyre and Warrington.

    They would be part of the 18% figure.

    Out of interest does anyone know if any of the energy suppliers use off shore call centres anymore? Sorry to go a bit off topic.
  • 2010
    2010 Posts: 5,372 Forumite
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    Plushchris wrote: »
    I've been saying that for ages. Maybe not paid straight to the supplier...It should be in the form of vouchers or something but not cash..

    This could also work in reverse.
    Instead of all the money the motorist gives in road tax we could just send in a certain amount of tarmac. :rotfl:
  • grahamc2003
    grahamc2003 Posts: 1,771 Forumite
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    2010 wrote: »
    This could also work in reverse.
    Instead of all the money the motorist gives in road tax we could just send in a certain amount of tarmac. :rotfl:

    Even cheaper, just send in a pothole.
  • magyar
    magyar Posts: 18,909 Forumite
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    edited 21 June 2011 at 9:12PM
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    In a way, the environmental levy in our bills is the elephant in the room. People seem to want windmills and other so called 'green' generation everywhere - yet their inefficiency is explicit with their subsidiess being something like 37% of the total energy costs in our electricity bills.

    'Something like 37%'? Even in the British Gas figure shown in the original post, the "Government Environmental Contribution" is 13%. That figure relates to all sorts of things, including energy saving initiatives, and to the degree that it goes to renewable generators, it also includes hydro, biomass, landfill gas, energy from waste and other such technologies. Only in the region of 12% of renewable energy in the UK comes from wind (link).

    So a more accurate figure is that 1.5% of your electricity bill goes to support wind farms. If you're talking about the 'and the link' i.e. other forms of renewables, then it's about 8% or so.

    If people were genuinely presented with a choice such as 'you can have windmills and the like if you are prepared to pay 37% extra on your wholesale electricity cost' would they have chosen them?.

    Probably not, which is why it's so important to challenge inaccurate 'facts' such as these.
    Says James, in my opinion, there's nothing in this world
    Beats a '52 Vincent and a red headed girl
  • grahamc2003
    grahamc2003 Posts: 1,771 Forumite
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    magyar wrote: »
    'Something like 37%'? Even in the British Gas figure shown in the original post, the "Government Environmental Contribution" is 13%.


    Probably not, which is why it's so important to challenge inaccurate 'facts' such as these.

    I said

    yet their inefficiency is explicit with their subsidiess being something like 37% of the total energy costs in our electricity bills.

    From British gas, Wholesale electricity £35, Government environmental contribution £13

    I'll forego the simple maths calc showing £13 as a percentage of £35 is 37%, exactly as I stated. Please read, re read and re read again my posts before you (for the second time in as many posts) acuse me of posting false information.
  • magyar
    magyar Posts: 18,909 Forumite
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    edited 22 June 2011 at 6:32AM
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    I imagine most people read it the way I did, i.e. "for every £100 you pay in your electricity bill, £37 is going to subsidise wind farms".

    So let's be clear. For every £100 you pay in electricity, ~£1.50 goes towards wind farms.

    What is misleading is to suggest that the subsidy for wind farms is 37% of the wholesale cost, because the two figures are unrelated. If wholesale electricity costs were to double (as wholesale prices we in 2008, for example), then this percentagebwould halve,
    Says James, in my opinion, there's nothing in this world
    Beats a '52 Vincent and a red headed girl
  • grahamc2003
    grahamc2003 Posts: 1,771 Forumite
    edited 22 June 2011 at 9:56AM
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    Magyar, So two posts, one accusing me explicitly of lying, the second, above, implicitly stating I am lying. Both proved incorrect. Notwithstanding a professional person wouldn't jump in feet first and accuse others of being incorrect, let alone lying, when in fact it is themself who is, a professional would have the grace to apologise unconditionally for such distasteful and libelous accusations on a public forum.

    The percentage of 'green' subsidy costs compared to the actual energy costs is the most pertain measure I can think of and I think the public find useful and at 37% according to bgas's figures, I hope most find it thought provoking, especially those less fortunate who from this year and onwards are likely to be driven into fuel poverty by what are actually optional costs we choose to bear.
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