MSE News: We'll freeze energy prices, Ed Miliband tells Labour conference

Ectophile

A freeze on excessive fuel prices sounds good. however, the daft thing is that if he announces in advance when the freeze is going to start, then the energy companies will just hike up the prices before it starts.

Pincher

They say Greece is the cradle of democracy, and they have certainly shown us what the future of democracy is. Compete to bribe the electorate, funded by unlimited borrowing, which the ones in power siphon off. Cook the books until nobody will lend you any more, and then leave the mess for somebody else to sort out.

In some countries, £50 is the going rate for a vote.
Fixed energy for two years, that's about £400.

I hope the polls contain the question: "Should Ed Millipede be deported to Greece where he should have a brilliant political career?"

DragonQ

TattyBear wrote: »

This Marxist idiot makes Kinnock look useful.

God help this country if Labour wins the next general election.

Are you suggesting the Conservatives would be any better? May I point you to exhibit A, the past 3 years?

wakeupalarm

Rather then turn this into a political debate about the merits of Labour! at least this story has bought the energy cartel's prices to the front and centre just before they launch their rip-off winter price increases.

Not a single person can demonstrate how the current pricing structure is calculated not even the energy cartel themselves which just goes to show how much the market is broken, competition or lack there of is not working.

insanegloss

wakeupalarm wrote: »

Rather then turn this into a political debate about the merits of Labour! at least this story has bought the energy cartel's prices to the front and centre just before they launch their rip-off winter price increases.

Not a single person can demonstrate how the current pricing structure is calculated not even the energy cartel themselves which just goes to show how much the market is broken, competition or lack there of is not working.

I think you fail to understand how things work in the real world of commerce. There isn't a single mechanism of how pricing is calculated and that's why nobody can demonstrate it.

What really exists are analysts who model external costs over time and then balance that with a price that would fit the particular aims of the tariff along with simple human decisions.

Not only to mention, the modelling methods they employ are trade secrets (after all if your competition know what your prices are to be in the future, they can out compete every step of the way).

Therefore, don't ever expect to see how a company comes up with a price.

mat5664

Price controls in a market economy do not work. Providers will simply stop investing and put up prices drastically both before and after the freeze. Anyone who falls for this needs to have a look back in history at the last time we had price controls.

smerch1468

Ed Milliband LOL.

ashleyriot

Still no idea whom I will vote for in 2015 but here we see Milliband now forcing the Conservatives to put a stake in the ground on the rising prices of electricity and gas.

Is it OK for prices to continue rising at the rate they do whilst ensuring that profit levels remain consistent for these companies?

Milliband is attempting a slightly more left-of-current-position for the party so we will now see whether the Conservatives stay where they are (therefore continuing to promote big business over the population) or accept some changes for people paying their bills.

I don't know how we will afford it and I don't know how we stop the companies raising prices before the freeze. I do know that tax evasion costs the government four times as much as benefit fraud, however:

http://www.theguardian.com/commentisfree/2013/feb/01/welfare-fraud-tax-avoidance

MillicentBystander

wakeupalarm wrote: »

Rather then turn this into a political debate about the merits of Labour! at least this story has bought the energy cartel's prices to the front and centre just before they launch their rip-off winter price increases.

Not a single person can demonstrate how the current pricing structure is calculated not even the energy cartel themselves which just goes to show how much the market is broken, competition or lack there of is not working.

Looking at it in the cold light of day I think this is the real advantage of the 'pledge'. ANYTHING that puts the spotlight on this most distrusted of industries is a very good thing imo. Of course, the posters who derive their livelihoods from this industry will be out in force today but let's not allow them to sway opinion too much.

setmefree2

insanegloss wrote: »

I think you fail to understand how things work in the real world of commerce. There isn't a single mechanism of how pricing is calculated and that's why nobody can demonstrate it.

We can however see that the profits of the utility companies are rising.

This has contributed to overall industry profits of £2.15bn in 2009, £2.22bn in 2010, £3.87bn in 2011 and £3.74bn in 2012.

Source BBC

Since 2007, gas bills have risen by an average of 41% in real terms, while electricity has gone up by 20%, according to the Office for National Statistics.

Why???

So where has this extra profit gone??? To the shareholders???

Utility stocks are well known for their high dividend yield. Question is are the utility companies actually making supernormal profits?

We need answers.

Sadly the present government aren't providing us with any.
Good on Labour. Didn't know they had it in them.