MSE News: Cold snap 'no excuse' for energy price hikes, Government says

Former_MSE_Helen

"The Government has issued a warning to energy companies that the recent cold weather is "no excuse" for putting up bills..."

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Cold snap 'no excuse' for energy price hikes, Government says



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ic

Do they really need an excuse? Don't forget normally they reduce their bills around this time in readiness for summer. Perhaps even if they "caved" to pressure and didn't increase and just left them up, we'll still be behind as they should have dropped a bit. Of course they'll go up in the autumn again regardless.

The old "there's only two things certain in life: death and taxes" needs reviewing, now its "there's only three things certain in life: death, taxes and price hikes".

Bark01

Isn't the issue that bills will rise as people are using more due to the cold snap?

No mention of the increase in bills that will be caused by the government backed Green and ECO deals?

Niksan

However, a Government report released today says wholesale gas and electricity costs currently make up the largest proportion of an average household energy bill.

What else makes up the bill? Or is this sort of saying, there's not a lot of tax involved? Maybe standing charges?

dtaylor84

I think the implication is they are not creaming off vast amounts of profit.

Plus tax, other costs (e.g. staff, infrastructure, marketing), and various payments required by environmental policies, to the national grid, etc.

hanlou007

and what will the Government do??? nothing

sheffield_lad

hanlou007 wrote: »

and what will the Government do??? nothing

What can they do lol.

The cost of energy worldwide is rising, the UK actually has some of the cheapest energy in Europe cheaper than both Germany & France.

Instead of looking at the wholesale market driven costs, consumers AKA us lot should look at how we can reduce the amounts we use via efficiency & insulation.

Basically we are not being ripped off its just the whole world now wants what we used to have and take for granted.

Cheap energy.

Print_Screen

howee wrote: »

...consumers AKA us lot should look at how we can reduce the amounts we use via efficiency & insulation.

Basically we are not being ripped off its just the whole world now wants what we used to have and take for granted.
Cheap energy.

True worldwide energy use is rising, population increase and the rise of the BRIC countries. However if every single person in the UK were to insulate, change their boilers for the most energy efficient possible and drop their usage, this would eat in to the profits of the Energy companies.

Do you think they would just sit back and take this? What would their shareholders say?

Remember the energy companies first responsibility is to their shareholders not their customers, although they may like to dress it up like it is
If companies start making less money due to customers usage dropping they will simply put up the cost to make up the difference.

dannymccann

Print_Screen wrote: »

True worldwide energy use is rising, population increase and the rise of the BRIC countries. However if every single person in the UK were to insulate, change their boilers for the most energy efficent possible and drop their usage, this would eat in to the profits of the Energy companies.

Do you think they would just sit back and take this? What would their shareholders say?

Remember the energy companies first responsibility is to their shareholders not their customers, although they may like to dress it up like it is?
If companies start making less money due to customers usage dropping they will simply put up the cost to make up the difference.

Nail, head :T

Essentially us, as the end user, as usual, are the ones that can do nothing about it and have to just roll over and take it!

MillicentBystander

Print_Screen wrote: »

True worldwide energy use is rising, population increase and the rise of the BRIC countries. However if every single person in the UK were to insulate, change their boilers for the most energy efficent possible and drop their usage, this would eat in to the profits of the Energy companies.

Do you think they would just sit back and take this? What would their shareholders say?

Remember the energy companies first responsibility is to their shareholders not their customers, although they may like to dress it up like it is?
If companies start making less money due to customers usage dropping they will simply put up the cost to make up the difference.

Precisely. And this is something the industry shills on here won't admit to. Fact is, once you privatise an industry like heat and light you allow people to be ripped off simply because these companies are there to make/maintain a level of profit that no amount of populace cost cutting is going to affect. That's why it's an absolute nonsense when the Govt encourage people to use less gas and electricity - the industry is set up in such a way that they aren't really going to save any money (as a populace) whatever they do. The industry is basically a crock of **** but enough people (including the Govt) are making enough money out of it to just let it continue as before.

MillicentBystander

Don't forget you can almost multiply these figures by 6 when you take into account the Big 6 who dominate the industry.

British Gas boss Phil Bentley saw his total remuneration leap to £3.1m in 2012 from £2.1m a year earlier.

http://www.morningstaronline.co.uk/news/content/view/full/131084