SSE to lower Gas prices tomorrow

alared

Get these so-called price cuts into perspective.
A meagre 12% gas here and 5% leccy there is all very well but don`t forget prices have risen 105% over the past 4 years.

As for BG,what a load of crap,I`d rather sit by candlelight and use bottled gas than have anything to do with them.
Why don`t they cut prices by 50% ----that would be worth sprouting about.

broxis11

GunJack wrote:

I've been with SSE for a while now. They sent a letter just this side of xmas stating that they were going to cut prices, with detail to follow accordingly. This was WAY before BG announced their cuts. The detail now published I believe puts them still way cheaper than BG, so I for one will probably not need to change supplier for the forseeable future. Nice one SSE

That letter must have been at the same sort of time as the one telling you gas was up 12% and leccy 9% on the 1st of January...

broxis11

hurrah wrote:

As they havent been the cheapest supplier for some time i dont share your optimism.

Funnily enough, they have today announced a further reduction for the Click Energy product, making them cheaper than SSE, so I have been told.


It`s an extra 4% reduction, I found out today but I can`t see any detail on either the house.co.uk or centricas which is a bit strange.

It was confirmed to me in official communication from BG though.

Cardew

alared wrote:

As for BG --- Why don`t they cut prices by 50% ----that would be worth sprouting about.

The simple answer is they can’t. This was posted in another thread.

Under the rules for deregulation of the Gas/electricty industry BG, who had a monopoly, were restricted from reducing their prices. The reasoning behind that stipulation was they could have reduced their prices as a 'loss leader' and killed off any competition before those companies got up and running.

In the same way Electricity companies, who were regional before deregulation, were not allowed to reduce prices for their catchment area.

The above is an over-simplification of a set of complex regulations, and the restrictions will be relaxed - but BG still have to apply to the Regulator for permission to cut prices.

As Broxis11 mused above, BG are in a very strong position if the ‘gloves come off’

BG’s parent company Centrica have huge financial resources. If the regulator allows BG a free hand, and its starting to look as if it is going that way, they have the financial muscle to undercut all the other companies and, like a game of poker, force other companies out of the game.

To a certain extent this has already happened with all of the smaller companies, who came in at deregulation, unable to stand the losses they were making – remember BG lost huge sums last year.

If BG do get a monopoly, or squeeze more of their competitors out of business, it will be the customers who will gain in the short term, but lose in the longer term.

broxis11

Cardew wrote:

The simple answer is they can’t. This was posted in another thread.



As Broxis11 mused above, BG are in a very strong position if the ‘gloves come off’

BG’s parent company Centrica have huge financial resources. If the regulator allows BG a free hand, and its starting to look as if it is going that way, they have the financial muscle to undercut all the other companies and, like a game of poker, force other companies out of the game.

To a certain extent this has already happened with all of the smaller companies, who came in at deregulation, unable to stand the losses they were making – remember BG lost huge sums last year.

If BG do get a monopoly, or squeeze more of their competitors out of business, it will be the customers who will gain in the short term, but lose in the longer term.

But would BG be able to stand up to giants like EON, who surely have more financial clout than Centrica?

A price war could be very interesting :j

space_rider

No, BG have more money than EON

broxis11

space_rider wrote:

No, BG have more money than EON

Where did you research that?


Centricas turnover for 2006 was £16.5bn and EON was £56.4bn in 2005.

alared

Take it from me,NONE of them will start a price war.
They`re too bl00dy greedy.
If they were open and honest they wouldn`t have so many different tariffs to bamboozle people with.

If you raise prices by 105% and then cut by 12%,it`s hardly a big deal,although they will shout about it.

The ONLY reason any of them have annouced price cuts is because they are terrified of an investigation by Ofgem.
After wholesale prices have come down 50%,they could hardly sit and do nothing.

lisyloo

If they were open and honest they wouldn`t have so many different tariffs to bamboozle people with.

Just wanted to point out that Ebico have ONE tarrif for everyone.
They are a non-profit organistion run on christian principles.

But in general I agree with alared about the industry in general.

alared

Needless to say I`m with Ebico

---

can`t fault them

---

switched last year from Pgen,who couldn`t get my bill correct for years.