David Cameron writes for MSE on his plans to help on energy bills

magyar

Totality wrote: »

My point is that the fact we're cheaper than other countries for gas and electric won't be of interest to the majority. We're still paying a fortune.

I agree it won't be of interest. Look, this is human nature. If you go to the doctor, you don't want to be told to eat healthily and get more exercise. You want a magic pill to make it better.

The truth is that there is no magic energy pill either. You shop around and get the cheapest tariff, and you try and use less. That's how you reduce your bill. You can't expect the government to magically make bills cheaper for you.

Totality

I know how you reduce your bill and agree people do need to make sure they're on the best deal and use to a minimum where possible. Doesn't make the cost per unit any cheaper though. I'd like some clear facts from all of the big six on how they can justify the increases when wholesale prices are coming down.

On a related note (ish), inflation has risen to 5.2%. Yikes.

lynzpower

The truth is that there is no magic energy pill either. You shop around and get the cheapest tariff, and you try and use less. That's how you reduce your bill. You can't expect the government to magically make bills cheaper for you

But each person/ Household is generating over 100 quid in profit.

If utilities were by effect " not for profit" then this money would not be there to be given in multi million salaries to the tiny few at the top.

No one is suggesting there are not supply issues but if we the average consumer
a) have taken all the energy measures possible to keep heat in
b) stil find our bills rising
c) yet the big six regularly announce bumper profits

Dont you feel that is a Pee take?

vax2002

Well I hope you read this Mr Cameron for I am going to tell you the answer to utility sharks ripping us off.
Firstly, halt all politicians and civil servants from holding shares, consultancy and directorship positions in any utility company, for then we might get a unbiased crack from the whip hand.
Next, force utility company's to be able to sell utility charges in a cost per unit ONLY.
If I go to the market, the butcher has to say, beef is £2.25 a kilo here, I can go next door and see the other butchers price, he does not say beef, pay by direct debit and the first 500g will be at a 1/3 reduction and any grams over that will qualify for a 2beef for 1 kg offer paid at 2/3 per kg rate subjected to a minimum price per kilo and then estimate the cost of my sunday joint and come round to the house and weigh it later and charge me at the old rate for the difference.
Understand that ?
No nobody else can either, but this is how they sell us utilities.
I want to see and end to these confusing schemes and the price per unit you will be charged on each rate displayed at the forefront of the companies tariff, the market traders have to display tarrifs in plain English under weights and measure, is gas and electricity not sold by weight and measure, use the existing legislation and enforce it "!
Example:
Gas units 8am to 12pm 5.4p per unit prepay- 4.7 p per unit direct debit
12.01 Am- 8 Am 4.7 p per unit prepay, 3.9 p unit direct debit

What else do we need, why can we not see prices in this format, they wont even tell you the rate they charge you at, why ?
So Mr Cameron, use the legislation we have now and wind these shark in.

rogerblack

Dorset_Knob wrote: »

My mother-in-law is 90 years old and lives in a village with only electricity and heats her house with night storage heaters. She does not have access to a computer to shop around for cheaper deals. She tried to change suppliers once before and was told that if she did she would lose the afternoon boost she relies on to try and keep warm. Has anyone else come accross this?

She is on an 'economy 10' tariff.
This is comparatively rare, and most suppliers do not support it.
It can in some cases be a very good saving.
Might be worth getting an electricity bill - and seeing if you can find a supplier that works out cheaper.

magyar

lynzpower wrote: »

But each person/ Household is generating over 100 quid in profit.

If utilities were by effect " not for profit" then this money would not be there to be given in multi million salaries to the tiny few at the top.

And if they were 'not for profit' then who would pay for all the new infrastructure we need building? Yes, in theory the government could but that's a zero sum game as we'd just have to pay more in taxes.

lynzpower

magyar wrote: »

And if they were 'not for profit' then who would pay for all the new infrastructure we need building? Yes, in theory the government could but that's a zero sum game as we'd just have to pay more in taxes.

Profit is whats left after costs.

magyar

lynzpower wrote: »

Profit is whats left after costs.

Doesn't work quite like that. The 'Big 6' that we know are in fact supply companies only: they are not allowed to own generation assets.

So let's say they make £10m in profits (i.e. revenues less operating costs) in the supply company. This is then passed up to the parent company who decides how to spend it.

So let's make it simple and assume the parent just decides to distribute some to shareholders and then spend the rest on new infrastructure assets. Let's say they decide to distribute £1m to shareholders, leaving £9m.

The fact they have made profits (and are forecasting profits in the future) means they can borrow money into the business. Typically £1 profits = £4 debt, so that allows them to then invest £45m into generation assets.

This £45m can then be passed down to the generation company who will then build the power station.

magyar

harrowing. wrote: »

Did anyone see the Beeb news that said supermarkets' profit margin was 9% - err, what????!!!!!

Seems a bit high to me, I thought they averaged around 5%. Trouble is 'profit' is a very generic term, depends on whether you're talking gross margin, profit after tax and so on.

RobStaffs

Must admit I had to control the urge to boot the telly in when the Energy Sec in a very pompous way told us all to shop around.Hello!!!!!