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

Nemesis201077

Whilst I agree with Malcolmffc's comments that the gross margins seem small, however the overall profits are still quite vast. To announce such huge profits on the back of recent price hikes is naturally going to upset a large pecentage of the customer base. In any other market the consumer would switch to a competitor for improved prices, however every company is increasing prices leaving consumers with no choice but to swallow it. I've always believed that offering a good product, with good sevice at a competetive price is the best approach, that way you will retain your customers and make a modest profit year on year. The drive for huge profits for shareholders is where the energy market struggle to convince anyone they actually care about the consumers.
The government is doing something positive, building more nuclear power plants. Whilst nuclear might be unpopular, the fact remains that the costs for energy production in this manner remain one of the lowest and most consistent. This would mean the energy markets could no-longer claim the rising cost of raw materials lead to increases in thier prices. This, coupled with support for more renewables to move us away from traditional fossil fuels seems to be a sensible, if un-popular route.
In the meantime DC can make all the vote grabbing speeches he likes, at the end of the day the consumer will always be at the mercy of the people who provide services that are essential. Unless we all can afford to stick solar panels on our houses, generate our own power and no-longer require energy producers to do it for us.

Dave_Gould

With only 6 suppliers, we are on the border between a free market and an oligopoly. My initial impression is that we are seeing cartel behaviour here.

If so, the relevant point of the coalition statement is:
"encouraging new players, like supermarkets and co-operatives, to enter energy markets by forcing suppliers to sell more of their electricity on the open market."

But I'd be surprised if we can get our electricity from Tesco before Xmas and don't expect massive reductions -- we will be paying to reduce carbon emissions one way or the other.

Geek_Grrl

Am I right in thinking that EDF Energy is still the nationalised electricity supplier in France. Are they exploiting us to give them cheaper electricity. Just something I've heard

Honest_Men

The Government should renationalise a number of things and one of these is the utilities. We are being screwed by the left by the right and by the centre. There are no political parties that are in touch with the commom man anymore. You no longer see fat cats in the streets because people cannot afford to feed them there are loads of fat cats though that are feeding of the working class:(:(:(

raider

For starters, how about the government scraps the VAT on such a crucial service.

Or maybe the government needs the money more than struggling ordinary people?

tagq2

Geek_Grrl wrote: »

Am I right in thinking that EDF Energy is still the nationalised electricity supplier in France. Are they exploiting us to give them cheaper electricity.

Some private investment is permitted now, but mostly yes. The biggest energy producer in Europe (in the world?) is, not surprisingly, (1) nationalised; (2) not afraid to invest in nuclear power.

jamesd

Friends_of_the_Earth wrote: »

We've launched our Final Demand campaign today calling for an independent public inquiry into the Big Six.

Looks like trying to blame others - the energy retailers - for its own faults and hypocrisy - advocating mandatory use of expensive energy sources.

Here's what the FotE demand says in key part: "The Big Six supply 99% of households and make billions in profits by keeping us hooked on expensive dirty fuels."

And what FotE advocates in its energy policy is mandatory switching to more expensive energy sources:

• "legally binding emissions cuts
• close dangerous carbon offsetting loopholes
• stop the expansion of carbon markets"

Does Friends of the Earth support things like fracking that can greatly expand the supply of relatively inexpensive and relatively lower carbon energy supplies from domestic UK sources, without the need to ship energy around the world?

Friends of the Earth are a big part of the cause of the problem, not the solution. Unless the organisation plans to suddenly support inexpensive energy sources instead of advocating mandatory use of expensive ones?

At least try to keep the hypocrisy level down a bit in places where people can point it out.

CarolCW

rogerblack wrote: »

The standing charge (or first unit rate) means that light users pay more per unit, and that energy saving measures by this group don't impact much on their bill.
Surely one rate for electricity units, into which are rolled all charges would be a fairer approach more consistent with efforts to reduce carbon - those using the most energy would pay the most, those using the least would save.

The more expensive first unit rate is particularly unfair on the poor/elderly and does nothing to reduce use by the richer.

rickbonar

I've got a suggestion for them...

re nationalise and cap chief executive pay to a maximum of £500,000 per annum and bonuses limited to what their company saves the customer.

And whilst they're at it do the same with Phones, Water, Railways and bus companies..... and a few others that I've not mentioned.

jamesd

Geek_Grrl wrote: »

Am I right in thinking that EDF Energy is still the nationalised electricity supplier in France. Are they exploiting us to give them cheaper electricity. Just something I've heard

Electricite de France was denationalised in November 2004.

EDF in France is a source of relatively cheap, environmentally friendly very low CO2, electricity. If there's exploitation it's more likely to be the other way around because the UK energy market is more competitive than the one in France. In the UK it's also a big supplier of environmentally friendly low-carbon energy.