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

DJ_Mike

As much as Labour's announcement is utter guff (how on earth they think the sensible way to tackle energy companies' profit-mongering is by fixing prices is unfathomable), I agree with others that it does at least throw the spotlight on energy companies again.

As much as having industries public can lead to bloat and poor value for money, there has to be a better solution than simply letting these companies be private, share-holder, profit-driven entities. When companies exist to make money from commodities that are essential in people's lives (gas and electricity can NOT be considered luxury items in this day and age), it's the consumers who lose out.

MakeitgoRIGHT

"Gas and electricity prices will be frozen"

That is typical of Labour and their way of getting elected. They offer money savings and ANYTHING to the voter, just so they can get voted in, and while in they continue to buy the support, lest they get voted out, all the way until our finances are near collapse, when the voter finally realises that Labour are just a incompetent wasters, and puts someone else in to fix up the mess.

And after a few years of protest at having to finally pay for all the sweetners they devoured under the incompetents, they go and vote them in AGAIN!

That is the dumb thing that I really find so hard to understand. Memory of goldfish, basically and desire for easy get now pay later.

KTF

Will the last one out please turn off the lights...

No need as they wont be on in the first place due to the black outs.

Parsimonious_pensioner

I don`t believe that this will work because :-
a. Energy companies are private companies with shareholders etc., I don`t think governments can tell them what to charge.

b. What`s to stop them increasing prices before 2015? BG are threatening this right now.

c. I don`t trust labour. They are only saying this to get back into power and control us again.

d. If they do it, labour will tie us up in red tape as usual, as they just love bureaucracy.

Joe_Bloggs

What if the Energy companies get their retaliation in first by announcing extra price hikes ahead of a general election. ?

EDF is state owned by France and generates/distributes in the UK.
What is their say rather than that of Angela Knight ? Does it differ across the channel ?

Any one know of any other state involvement in energy production/ distribution ?

Perhaps Canadian Teachers should hold Centrica to account if these plans would lead to the 'firms economic ruin' as mentioned in an attributable quote By the BBC from a senior executive.

NittyGritty

which ever way you look at things, prices always rise regardless of it being through an official rise (normally every winter) or through a stealth rise under the guise of a new tariffs coming out, either way the only way is up.

I,m safe in the knowledge I,m fixed for 3 winters at least, with the 2017 tariff, yes its high, but looking at the state of things id save in the longer run, even with millibands statement, and that's a BIG if. 1. he gets into power, and 2. he acutally implements it. and 3 you acutally believe what he says

undaunted

Totality wrote: »

Because the fat cat bosses aren't going to like being told they can't put up their prices for a certain period of time.

You honestly think that if this happens, we'll get to 2017, the price freeze ends, and the likes of British Gas and nPower WON'T put prices right up?

I just don't see this happening, even if Labour do win the next election.

However, if the prize freeze was to happen, is there a chance Ed will just hand the costs to the energy companies through general taxation?

Genuinely can't believe anybody believes this would happen without us all getting stiffed in the pocket somewhere along the line.

Parliament could pass a law to do it. The energy companies could try going to europe - but will they? (remember that Energywatch & the like has previously suggested they ought to be referred to the competition commission so I'm not sure that they'll want to get involved in too much European involvement personally)

Labour could always try renationalising the industry too if that were to happen, no more rising profits then boys

Short of that happening I don't believe for a moment all this guff about n one investing or the lights going out. These people make massive profits overall & will retain as much of that as they can - but hopefully a little less than they'd like!

undaunted

In reality however I'm not necessarily convinced this will to fruition in the end. Just look at some of the promises the current lot made before they got in - and then immediately used the coalition factor to renege upon - but that doesn't mean it wont become a game changing announcement from both the energy consumer and electorates point of view. What are the polls saying today I wonder? (I'd bet Labour are up on yesterday morning! Also that the Govt will be forced to respond if they don't want them to stay there.)

ollski

Presumabley miliband will reduce the tax burden on us and energy companies to allow that to happen. Don't see a problem with that.

insanegloss

setmefree2 wrote: »

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

Source BBC


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.

You've got to look at rising profits not in absolute terms, but in % of turnover other wise it doesn't show how efficient a company is converting its turnover into net profit. On that measure energy companies have been at a fairly consistent margin of 5-10% (closer to 5% on average) over the last few years.

Now, I don't know about you, but those figures are fairly low (yet produce sizeable absolute profit figures) simply as they have so many customers.

It also means, that there wouldn't be much of a reduction on your bills if they made no profit. Between £65 and £130 pounds a year off on a £1300 dual fuel bill, or £5.41 to £10.82 per month. Also, that would mean that they couldn't build any new infrastructure (after all, you've just covered the costs of the bill and no more) and shareholders wouldn't get a dividend.

Now, most people scoff at 'shareholders and their dividends'. However you're more than likely one of them if you have a pension, and the profits these companies make indirectly would be yours building up in your pension pot.

So, for me the whole debate around energy companies is a distraction and not a good one. Yes, there are issues to be tackled such as customer service and ensuring profiteering doesn't occur. However, the problem in my eyes is the inequality in the economic fortunes of the customers, i.e all of us. Surely that is where to target big reform instead of damaging something as fundamental as energy?