MSE News: Huge energy price cuts 'unlikely'

Former_MSE_Helen

This is the discussion thread for the following MSE News Story:

"Households have been warned not to expect huge price falls if the big six energy firms cut costs ..."

Read the full story:
Huge energy price cuts 'unlikely'

undaunted

This seems like a none story rather than a news item to me!

I note that it suggests suppliers will have bought their energy some time ago for use in the coming months.

Following this logic they will presumably also be buying today whilst prices are low for future use & at some future date we will see the benefits of these lower wholesale costs?

Or is the truth that they are just a greedy set & we have more chance of seeing a flying pig than lower costs being passed on?

Perhaps "call me Dave" had better arrange another of his wonderful summits?

Consumerist

It seems to me that not many consumers will be able to immediately benefit from any price reductions due to the year-long contracts imposed on them even for variable-rate tariffs.

It is unlikely that energy companies will actually reduce current tariffs but instead they are likely to generate new cheaper tariffs which most of their current customers won't be able to switch to because of these so-called "innovative" tariff contracts (Ofgem's description, not mine).

The energy companies are just running rings round Ofgem and consumers alike.

HalloweenJack

energy companies complain when prices go up (be aware 2 of the wholesalers are the companies in the uk as well) - so prices have to increase staright away - but when they drop MASSIVELY they complain they have to forward buy contracts


utter !!!!!!!!/

Lube

Prices tend to drop when demand is getting lower too

Totality

Aren't the vast majority locked in to tariffs now anyway, which would mean not benefitting from any cuts?

bloss0m

Well some will thats the risk you take but ultimately prices will creep up again in the not too distant future. Even with price cuts which may not be much, prices have still risen in real terms in past 12 months

Totality wrote: »

Aren't the vast majority locked in to tariffs now anyway, which would mean not benefitting from any cuts?

robin58

Just means it will be a little longer before they announce further prices changes BUT it will be in the upwards direction. (cynic, me - no! )

Pincher

Just give me 26.7% discount fixed until 1st April 2013.
They can keep the standard tariff high for show, I don't care.

Pont

My understanding is that due to relatively mild winter, compared to the last 2 very cold, they've all 'over bought'. Hopefully it will come back to bite their very greedy butts as they're stuck with energy that we're not using!

I_luv_cats

http://www.bbc.co.uk/news/business-16501880

EDF Energy to cut gas price by 5%