Trying to freeze utility prices - can a labour supporter please explain how?

michaels

Genuine question, how could utility prices be frozen, will the companies receive a tax subsidy when international gas prices exceed what the gas can be sold for or will the companies be forced in some way to sell at a loss? What happens when they go bankrupt?

There are labour supporters on this board, please explain it.

chucky

Not a labour supporter, not any political party supporter.

They probably can't explain or even do it a bit like the guys that said there wouldn't be VAT rises before the last election... But the VAT rises happened anyway.

lvader

If they freeze prices then are the cheaper suppliers locked into cheaper deals? Or are they going for a fixed price for everyone? It's the type of idea a child would come up with, no thought of the consequences.

Loughton_Monkey

michaels wrote: »

Genuine question, how could utility prices be frozen, will the companies receive a tax subsidy when international gas prices exceed what the gas can be sold for or will the companies be forced in some way to sell at a loss? What happens when they go bankrupt?

There are labour supporters on this board, please explain it.

I am no Labour supporter. And I can't explain it. I suspect nor can he.

In the unlikely event he got in, though, I would welcome it. The thought of a well-off old pensioner like me getting frozen fixed prices to heat my swimming pool is manna from heaven. All the millionnaire Tottenham footballers that live around here (and Chigwell) would love it too. Energy Costs must bit hard into their £200K a week salaries.

And, I assume I'll keep the heating allowance.

If Miliband can save me, say, a 5% rise, then that's worth almost £300 to me. Probably only about £30 to the great unwashed who might vote for him.

Innys1

Loughton_Monkey wrote: »

I am no Labour supporter. And I can't explain it. I suspect nor can he.

In the unlikely event he got in, though, I would welcome it. The thought of a well-off old pensioner like me getting frozen fixed prices to heat my swimming pool is manna from heaven. All the millionnaire Tottenham footballers that live around here (and Chigwell) would love it too. Energy Costs must bit hard into their £200K a week salaries.

And, I assume I'll keep the heating allowance.

If Miliband can save me, say, a 5% rise, then that's worth almost £300 to me. Probably only about £30 to the great unwashed who might vote for him.

What??? How much is your annual utility bill? Are you saying it's nearly £6,000 a year?

Loughton_Monkey

Innys1 wrote: »

What??? How much is your annual utility bill? Are you saying it's nearly £6,000 a year?

£5,964 to be precise - although that's the annual amount of Direct Debits, calculated by current (fixed) prices at known prior usage. Actual usage might turn out to be higher because we had the pool on quite late this year. Turned it off in August last year. I got away with just under £5K last year, but it rocketed up for this year.

Thrugelmir

Makes good headlines for the Conference. Doubt the idea will ever see the light of day.

grizzly1911

Don't support any of them.

Doubt if it will lead to any of the big six going under, doubt it will create fuel shortages (that aren't already a possibility due to limited storage or generating capacity).

The energy companies will recover charges by loading prices (more than usual) ahead and recovering losses later.

It will have limited benefit if any for the consumer over the cycle.

Vertical integration of supply and retail obfuscates the true costs and profits. Do Spanish Power, EDF and npower have additional crossborder charges levied by their parents?

Consumers are probably being overcharged , as a whole, but competition brings efficiency, so we are told, so we must be benefiting from the current arrangements. :think:

CLAPTON

anyone know the percentage of the gas and electricity retail price that is tax?

michaels

5% on retail bills although of course all the producer nations extract various royalties from the production companies

CLAPTON

michaels wrote: »

5% on retail bills although of course all the producer nations extract various royalties from the production companies

it is the total tax take I was after