David Cameron & energy prices

Radiantsoul

SleeplessinScandinavia wrote: »

As energy prices ‘seesaw’ perpetually, how does anyone know what the lowest price will be, at any one time? Will companies, be forced, say from next week, to charge everybody the same 'lower' price? Or will they have time to increase all their prices before any new law is in place? Or maybe there will be an 'average price' - and everyone gets charged the same higher average?

Am I cynical or am I cynical...?:rotfl:

Energy companies hedge their prices and tend to move together when prices go up or down.

Loughton_Monkey

While expressing my own dissatisfaction with Cameron on this one, what I find more appalling is that us taxpayers pay - one way or another - over £60 million a year to keep these regulation muppets (ofgem) in business!

What - on god's earth - are they here for if not to keep the energy industry 'fair'?

It's patently clear that governments "interfere" directly. Not just on this occasion but by imposing punitive 'green taxes' and requirements onto the industry (at our expense). And then we have a large element of profiteering by the oligopoly of suppliers in the timing of their increases and decreases.

Either we must close down all these so-called regulators and save ourselves bundles of money. Or we bring them all in and tell them to damned well do something to regulate these industries and make them fair, transparent, and fully competitive.

Time, I think, for Channel 4 Dispatches (or similar) to stick hidden cameras on the walls of these Millbank Muppets and watch them sitting there painting their nails, watering their expensive pot plants, while writing huge cheques to their 'board of directors' to come in and have lunch every quarter. What else (if anything) are they doing?

Radiantsoul

Loughton_Monkey wrote: »

Either we must close down all these so-called regulators and save ourselves bundles of money. Or we bring them all in and tell them to damned well do something to regulate these industries and make them fair, transparent, and fully competitive.

There is endless regulation and reports. The evidence is that energy markets are competitive. The margins on the downstream utility providers are fairly small considering the huge capital invested.

paulmapp8306

I dont think hes proposed to fix prices has he? hes just stated they have to offer customers their cheapest tarrif for their use. all that wil happen is the cheapest tarrifs will get bigger.

Personally i think they SHOULD fix prices. Evergy companie smake huge proffits - though not as a % I guess. They constantly give reasons that dont stand up - for instance how can they justify increases due to increased cost fo supply when those prices are actually falling? A few years ago I remember the same thing - and they said it was because they buy a year ahead and prices were rising them, yet a year later the pricces they charged didnt fall.

Power if seriously expensive at present, and that needs sorting for the majority of us. I know we use more than we used to - and that needs sorting as well, but the price per unit is getting stuipd. Before long with the cost of transport (fuel dependant), food (greatly fuel dependant) and consumer gas/elec, your going to have to earn way above min wage just to pay for those things.

Kennyboy66

Generali wrote: »

Stopping companies from using deliberately confusing pricing structures is no bad thing in general. There is a trend towards that and IMHO it's wrong because these things are deliberately set up to prevent price discovery which results in the market failing at it's main purpose!

Whether this is good or bad specifically I have no idea. It's too hard to follow the detail of politics from afar.

Whether this is a good or

That is certainly true - and equally applies to the likes of Ryanair or the train operating companies.

The problem I have is that I don't see much difference between buying energy or buying say car insurance (annual) or moving your mortgage (lets say every 3 years).

The comparison sites aren't perfect but they do a reasonable job - you can compare tariffs and switch fairly easily if you have access to the internet.

wotsthat

Seems like bad news in the making for MSE folk.

I prefer the current system where those who don't chase decent deals subsidise those that do.

Not that it's going to happen - this is just politicians trying to look as though they are 'doing' something.

Generali

Kennyboy66 wrote: »

That is certainly true - and equally applies to the likes of Ryanair or the train operating companies.

The problem I have is that I don't see much difference between buying energy or buying say car insurance (annual) or moving your mortgage (lets say every 3 years).

The comparison sites aren't perfect but they do a reasonable job - you can compare tariffs and switch fairly easily if you have access to the internet.

Perhaps it would be better to make companies price in £/unit. That way you could compare easily.

Radiantsoul

Generali wrote: »

Perhaps it would be better to make companies price in £/unit. That way you could compare easily.

I guess the "flatter" the tariff the less effient they are. I have often wondered if you could have a pure market tariff based on prices at the National Balancing Point at the minute the energy is consumed.

Flattening out demand so more is consumed at night/winter would reduce the investment society makes in energy production that is not producing more much of the time.

Wookster

Radiantsoul wrote: »

I don't know if that is the case. Carbon is arguably not appropriately taxed(cost of global warming and the fact that future generations cannot reburn it), we go to wars to maintain oil, nuclear energy has received large subsidies and is not popular, etc...

Its very simple, the wind doesn't always blow. Meaning that you need to have alternative sources which is hugely expensive. Tidal power is MUCH more reliable.

paulmapp8306

TBH, even the energy companies dont always know wha tthe best tarrif for an individual is.

Recently I moved into a new house, and it was supplied by NPower. the tarrif was a standard one so could easily be "bettered" by Nower themselves or others.

I visited comparrison sites armend with correct data - both useage and cost. I went to NPower themselves as well.

Based on my consumption both sites i used and NPower themselves recommended the same tarrif. I looked at the options myself and from the info available it seemed the best to me as well.

Heres the crunch. I use a lot of Gas in the winter as I loke to keep warm, but practically nothing in the summer as we take showers (using an electric shower) and use little hot water if any. While the tarrif im on is best if my useage was ssplit throughout the year - or even weighted to more in the winter, it still isnt the best as it includes a standing tarrif. Basically im paying 43p per day every day for 6-7 months when Im not usuing any gas. Thats a wopping £78 for precisly nothing.

Despite this it is still the cheapest "combined" tarrif as one with no standing charge would work out cheaper over the year for Gas but more expensive for electric 9as Im quite a high user there) - BUT If Id gone for a Gas only tarrif with no standing charge, and a seperate electric Tarrif with a standing charge I would have been better off.

A bit of an extreme example possible - but nobody - be it comparrison sites, the Energy companies themselves or myself with some investigation - came up with what would actually be the cheapest for my personal useage pattern.