MSE News: Ofgem to scrutinise energy prices

Former_MSE_Helen Former MSE Posts: 2,382 Forumite
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



  • bufferz
    bufferz Forumite Posts: 74 Forumite
    Justa shame OFGEM dont have the balls to actually DO anything
  • backfoot
    backfoot Forumite Posts: 2,700
    Part of the Furniture 1,000 Posts Combo Breaker
    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_save
    Dave_save Forumite Posts: 362
    Part of the Furniture 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.''
  • MillicentBystander
    MillicentBystander Forumite Posts: 3,518 Forumite
    I hope there are no chocolate teapots reading this. They are going to upset. And rightly so IMO.
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