'Prime Minister, if prices don't fall this energy summit will be a failure' blog

Former_MSE_Helen

This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.

Read Martin's "'Prime Minister, if prices don't fall this energy summit will be a failure'" Blog.

Please click 'post reply' to discuss below.

NevGeorge

I've looked into different energy companies all seem to have incentives to switch to them, however the incentives are paid for by the consumer. I don't want frills and gimmicks I just want realistic prices for Gas and Electric.

One of the main narks I have is the amount of subsidised renewable's like windfarms that end up on our bills inflating them, also the homes being insulated under so called government incentives via the energy companies also ends up on OUR bills. I have had my house insulated thoroughly, changed every lightbulb, have A rated appliances and don't leave electronics on standby and still my bills don't come down but go up so what is the point? I won't see a return on what I have invested because greedy energy firms keep putting up the prices.

Wind turbine subsidies last year, 2010 £1 billion and rising, it has to be paid for so it ends up on our bills. This year saw compensation of 900,000 to wind farm operators to switch off their turbines for 1 night paid for by the National Grid, although small in comparison to subsidies paid per turbine this will also end up on our bills.

My question is: If the energy firms are making such large profits why are they not ploughed back into the renewables instead of the cost ending up on OUR bills?

Silly me, they pay huge dividends to their shareholders - this has got to stop!:mad:

IMO the Energy companies should be taken back and nationalised and a fairer pricing scheme sorted out because at the moment it's a diabolical shambles and the Tories are to blame for this in the first place, although not the present Tory government.

Nev

Mobeer

The government should forget all this non-sense about campaigning against the energy industry and get their own house in order instead. Energy companies do a good job of managing their finances and achieve better results than huge budget deficits; maybe Cameron could take a hint.

Lpool

In the budget when the Government introduced what was described as a windfall tax on the energy companies and they moaned and moaned some more. The chancellor was warned that the companies would pass this cost onto the consumer but he said he would watch them like a hawk. I assume the Chancellor has fell off his perch at some point as we can all see and feel the price hikes across the industry. I might have accepted that rising global cost for energy companies is the main reason for such sharp increases but the fact that profits are rising and not falling is a clear indication that the energy companies and their shareholders have not felt any of the pain of that so called windfall tax, as predicted the consumers have. I can’t be alone in thinking along these lines, it appeared obvious at the time and even more obvious now. If when the energy companies get hit with an additional tax they manage to increase profit then they have passed the cost on. So shareholders are happy but all consumers are not. If profits do not drop then both Ofgem and the Government seem to be powerless to stop another rip off.

alggomas

Whatever increases the general public face, the Prime Minister or the MP's or the EC Ministers will not feel any affect as they have huge salaries and expenses. The EC Ministers gave themselves a pay rise recently!

If they all cut their salaries by 10% and used this money to create jobs , I and others will be happy. Also 60% higher tax rate and 21% for ordinary mortals.

How can the economy get moving if all these cut backs mean that people cannot spend to boost the economy?

I think a VAT reduction on fuel and controlled prices will help.

mystic_trev

What I didn't realize until the other day, is we have some of the cheapest Energy prices in Europe! Fat chance prices will be coming down anytime soon!

Kite2010

How to make the energy system easier, scrap the hundreds of tariffs and just have 1 per company. Gas at X per kwh, Electricity at £Y per kwh. No more "gas will be this much for the first 7000 units before dropping to a much lower price" style tariffs.

magyar

NevGeorge wrote: »

My question is: If the energy firms are making such large profits why are they not ploughed back into the renewables instead of the cost ending up on OUR bills?

That's exactly what energy firms do use the majority of their profits for.

drbluebox

I got my yearly bill a few weeks ago(I am a pre pay customer) and it said my usage for gas was £120 for the year(I think it was half that) and that if I continue using the same amount for the following year it will be £240 so exactly double! Crazy.

LadyDee

I wish I could "check, switch and save" - I live on a mobile home park and we pay our water/electricity through the management company, So our bills are even higher as the management get a rake off. Plus we're locked into Calor lpg for heating, or some are on oil so very expensive also.

I bet no politician has ever had to wrap themselves in a blanket to keep warm in their own living room, any more than fat cat energy chiefs have, in order to keep their heating costs down.

Red_sky

Look it's easy. OFGEM just be given the power TO REGULATE PRICES the same as OFWAT does for the water industry and the same as many governments do in the EU with their energy suppliers ie. France. If OFGEM thinks the energy companies are getting too greedy, which obviously they have been doing for many, many years, then let OFGEM legally regulate and cap the prices and give them the POWER to LEGALLY REGULATE PRICES AND THE ENERGY COMPANIES. At the moment they are powerless to do anything but talk around the edges. Also people over the age of 70 should get energy at COST that is on a non-profit tariff. It's ridiculous that the energy companies should profit from the suffering and freezing to death of our OAPs (180 a day). At least give them a break. What a waste of time that meeting was in October. MY ENERGY PRICES ARE STILL THE SAME. OVER-INFLATED AND TOO HIGH. NOTHING CHANGED. IT'S ALL TALK AND RHETORIC.