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MSE News: Huge energy price cuts 'unlikely'

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'


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Comments

  • undaunted
    undaunted Posts: 1,870 Forumite
    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? :D

    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? :p
  • Consumerist
    Consumerist Posts: 6,311 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    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.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • 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
    Lube Posts: 1,495 Forumite
    Prices tend to drop when demand is getting lower too
  • Totality
    Totality Posts: 1,909 Forumite
    Aren't the vast majority locked in to tariffs now anyway, which would mean not benefitting from any cuts?
  • bloss0m
    bloss0m Posts: 1,923 Forumite
    1,000 Posts Combo Breaker
    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
    robin58 Posts: 2,802 Forumite
    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! :D)
    The more I live, the more I learn.
    The more I learn, the more I grow.
    The more I grow, the more I see.
    The more I see, the more I know.
    The more I know, the more I see,
    How little I know.!! ;)
  • Pincher
    Pincher Posts: 6,552 Forumite
    1,000 Posts Combo Breaker
    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
    Pont Posts: 1,459 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    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
    I_luv_cats Posts: 14,457 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    http://www.bbc.co.uk/news/business-16501880

    EDF Energy to cut gas price by 5%
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