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MSE News: Ofgem to scrutinise energy prices

edited 30 November -1 at 1:00AM in Energy
4 replies 1.3K views
Former_MSE_HelenFormer_MSE_Helen
2.4K posts
edited 30 November -1 at 1:00AM in Energy
This is the discussion thread for the following MSE News Story:

"Ofgem is to investigate energy prices after end of year results were this week revealed by five of the big six providers"
Read the full story:
Ofgem to scrutinise energy prices


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Replies

  • bufferzbufferz Forumite
    74 posts
    Justa shame OFGEM dont have the balls to actually DO anything
  • edited 7 July 2011 at 10:06PM
    backfootbackfoot Forumite
    2.7K posts
    edited 7 July 2011 at 10:06PM
    So Customer's on variable priced contracts( with exit fees) or standard are penalised for the poor and inefficient purchasing strategy of their Supplier.

    Another example of flawed system for an essential service.

    In the example, BG can slightly undercut the opposition but make a large gross margin.

    Or are the poor Supplier purchasers funding the margins of their generators?

    Either way, it makes me most uncomfortable.
  • Dave_saveDave_save Forumite
    346 posts
    Tenth Anniversary 100 Posts Combo Breaker
    ✭✭
    Looks like OFGEM have suddenly realised that the big 6 don't actually get the best deal in the wholesale market. Why should they? Poor negotiation skills seem to be on the CV of every supplier..... then the consequences are passed immediately to the consumer.

    I've yet to see any of these suppliers actually show innovation in the way they buy energy. Negotiations (risk free negotiations too) must go something like this:

    Wholesaler to supplier..''The price to you for 2012 will be increased by 20%.''
    Supplier to wholesaler..''OK, no problem I'll have 3 trillion zillion of your finest killowatts.''
    Supplier to consumer..''We have to increase our tariffs unfortunately, due to an unprecedented rise in the wholesale price of energy. We have tried our best to minimise the effect of these rises but we can no longer bear the cost.''
  • I hope there are no chocolate teapots reading this. They are going to upset. And rightly so IMO.
This discussion has been closed.

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