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MSE News: British Gas boss defends energy price rises

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  • HalloweenJack
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    where do you get a figure of 37% from?
  • Wendy_Brennan
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    Most homeowners want to save money and will spend when they can on extra insulation or powersaving gadgets and additions to their properties. But what about those who rent, especially older houses, whose landlords are reluctant to undertake essential repairs, never mind energy-saving alterations? Who will encourage them to spend the money they get form renting their house to top up loft insulation, add double glazing to old rotting windows or install cavity-wall insulation where possible?
    Renters often are paying out excessive amounts on energy, much of which is lost.
    Time something was done in this area as well.
  • yanis53_2
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    Utter !!!!ing !!!!!!!!, the energy companies are ripping us off, simple as!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
  • Hank_Marvin
    Hank_Marvin Posts: 267 Forumite
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    He said in that interview " But we have always been the first to lower prices. I say to the computer screen " !!!!!!!g tossa throwing us scraps" - more like it.
  • Bobjob_2
    Bobjob_2 Posts: 34 Forumite
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    The truth is that the energy market is an oligopoly, one that has been engineered by six disreputable and cynical companies to be as confusing as possible to the consumer, making us dependent on expert opinions to challenge assertions from the likes of Phil Bentley. The 400+ tariffs available are not there to provide "choice", they are to obscure the real price of electricity and gas so comparison is more difficult and switching is discouraged. In a properly competitive market no one would get away with such enormous price rises which are never corrected when wholesale prices fall. Bentley's explanation of this is complete drivel. I hope Ofgem will soon be showing some teeth and tackling the energy cartel. It's actually very important for the country as a whole that they do because a huge amount of money is being creamed off as excess profit and lost to our society by this industry and there's not a damn thing we can do about it.
  • Bobjob_2
    Bobjob_2 Posts: 34 Forumite
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    It seems Bloomberg, quoted in the Daily Telegraph on 9 June, refute claims by Bentley and the other companies that wholesale prices have actually risen in the longer term:

    "According to Bloomberg, the wholesale price for gas in autumn 2008 hit prices above 70p a therm. This compares to 59p per therm today, showing that wholesale gas prices have actually dropped 15pc since then.
    Similarly, prices in the wholesale electricity market reached £120 per Megawatt hour in autumn 2008. Today, they are £51.20 per Megawatt hour - less than half the price back then."



    So someone is lying...
  • magyar
    magyar Posts: 18,909 Forumite
    First Post First Anniversary Combo Breaker
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    Bobjob wrote: »
    So someone is lying...

    Bloomberg are factually correct although 2008 was a massive peak in the market. In 2001, baseload electricity price was about £10/MWh, and is now about £50/MWh. In general, it's risen steadily but with this very large peak in 2008 and a big trough in 2009-10 (when prices were down at £30/MWh or so).
    Says James, in my opinion, there's nothing in this world
    Beats a '52 Vincent and a red headed girl
  • magyar
    magyar Posts: 18,909 Forumite
    First Post First Anniversary Combo Breaker
    edited 22 June 2011 at 11:21PM
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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.

    Let's get a couple of things clear.

    - I accused you of lying because you said something which was untrue and have NOT provided any evidence whatsoever to back it up (far less 'proven it to be correct'). I did specifically say that if you have been misled by the press that I apologise, however you insisted that your fact was correct. If you provide any evidence whatsoever that wind farms receive a subsidy even when they don't generate, I will happily retract any previous statements and publicly apologise.

    - I have not 'implicitly stated you are lying' about anything else. You have decided that there is something important about the relationship between wholesale electricity price and the amount of money spent on a variety of green measures (which are not all 'subsidies'). The reality is these are completely independent figures.

    Can I ask why is it that you think these are 'optional'? Have you studied the breakdown of these in great detail? Do you know where that money actually goes, or the implications of removing it? Let's just take one simple isolated example: what would happen if you decided to remove the ROC support for offshore wind for example?
    Says James, in my opinion, there's nothing in this world
    Beats a '52 Vincent and a red headed girl
  • Devils-Advocate_3
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    yanis53 wrote: »
    Utter !!!!ing !!!!!!!!, the energy companies are ripping us off, simple as!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    Instead of ranting like a spoilt child, why don't you calmly and clearly express your reasons as to why you think that?
  • Bobjob_2
    Bobjob_2 Posts: 34 Forumite
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    magyar wrote: »
    ...and a big trough in 2009-10 (when prices were down at £30/MWh or so).

    Funny, I don't remember a big trough in energy prices to the consumer at that time. I seem to recall an insignificant price cut, mainly for online DD customers, heralded by millions of pounds of advertising by British Gas.
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