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Trying to freeze utility prices - can a labour supporter please explain how?
Comments
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I'm interested as to what margin of profit is acceptable for a gas/electricity supplier to make. I got the impression although the numbers sound huge that the actual profit made out of an average customer is less than a hundred pounds a year which doesn't leave a lot of scope if the wholesale market price increases and they are not able to pass on rises to customers.
Whether we like it or not we need the energy suppliers to be moderately successful to encourage them to invest to maintain future supplies. Miliband isn't going to help with crackpot ideas like this.
the 'official' figure is of an average bill of £1200 the profit is about £33
make of that what you will0 -
lies :eek:the 'official' figure is of an average bill of £1200 the profit is about £33
make of that what you will
quote:..
Its latest SMI says: “The rolling average net margin for a typical, standard-tariff, dual-fuel customer is approximately £95.” That implies a net margin of 6.7pc, based on Ofgem’s figure of £1,420 for a typical bill.“Life isn't about finding yourself. Life is about creating yourself.”
― George Bernard Shaw0 -
I'm interested as to what margin of profit is acceptable for a gas/electricity supplier to make. I got the impression although the numbers sound huge that the actual profit made out of an average customer is less than a hundred pounds a year which doesn't leave a lot of scope if the wholesale market price increases and they are not able to pass on rises to customers.
Whether we like it or not we need the energy suppliers to be moderately successful to encourage them to invest to maintain future supplies. Miliband isn't going to help with crackpot ideas like this.
I guess it depends on whether you are looking at retail profits alone or profits taken throughout the supply chain by parent companies.
Then consider the number of customers. It is volume market. with little in the way of alternative supply for a non differentiated essential product."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
lies :eek:
quote:..
Its latest SMI says: “The rolling average net margin for a typical, standard-tariff, dual-fuel customer is approximately £95.” That implies a net margin of 6.7pc, based on Ofgem’s figure of £1,420 for a typical bill.
Am I the only one that thinks a net margin of 6.7pc is not an astronomical profit?0 -
why the hell should people sit at home in onezees so the big six can make millions.
thousands die off lack of heating in the winter....“Life isn't about finding yourself. Life is about creating yourself.”
― George Bernard Shaw0 -
grizzly1911 wrote: »I guess it depends on whether you are looking at retail profits alone or profits taken throughout the supply chain by parent companies.
Then consider the number of customers. It is volume market. with little in the way of alternative supply for a non differentiated essential product.
I think this is perhaps where the problem lies. I thought it was OFGEM's job to ensure we are not ripped off but there does seem a need for more transparency of the figures. Have OFGEM said anything about this yet I wonder because isn't Ed basically saying they are a waste of space.
As a point of interest I used to work in the electricity supply industry before it was privatized and it was far from efficient then. I worked for a while in it after it was privatized and it was an industry becoming far more efficient when I left. I for one am convinced if it was left as a nationalized industry we would be paying far more!0 -
grizzly1911 wrote: »Aren't you clever, timing is all important..One increase out of many doesn't make a trend.
Well I've been 'clever' lots of times. Every time I've changed the price has either gone down or up by only a little. This year might be the first time in years that my YoY utility cost doesn't fall. To date water and electricity usage are down on the same period last year but gas is up due to the cold spring.
If people want to or have to they can reduce both consumption and cost.grizzly1911 wrote: »They will now doubt be able to afford the investment that they seem to have overlooked for so many years.
I sweat the small stuff. My utility bills are largely under my own control. How a new power station is funded is largely out of my control so I don't worry about it. However, if it's via my electricity bill then I'll be funding as small a proportion as I'm able.0 -
Profits at the big six energy companies have shot up 74 per cent since 2009 – dwarfing inflation’s rise of 13 per cent.
British Gas, E.On, EDF, npower, ScottishPower and SSE have enjoyed a £3.3billion surge in profits as households have been hit by a 29 per cent rise in bills.
Profits from the groups – which provide energy to 98 per cent of homes – rose from £2.15billion in 2009 to £2.22billion in 2010, £3.87billion in 2011 and £3.74billion in 2012.
The typical domestic dual fuel bill now stands at £1,420 a year, compared with £1,100 in May 2010, according to regulator Ofgem
poor old energy firms- not“Life isn't about finding yourself. Life is about creating yourself.”
― George Bernard Shaw0 -
I think this is perhaps where the problem lies. I thought it was OFGEM's job to ensure we are not ripped off but there does seem a need for more transparency of the figures. Have OFGEM said anything about this yet I wonder because isn't Ed basically saying they are a waste of space.
As a point of interest I used to work in the electricity supply industry before it was privatized and it was far from efficient then. I worked for a while in it after it was privatized and it was an industry becoming far more efficient when I left. I for one am convinced if it was left as a nationalized industry we would be paying far more!
I have no doubt it has become more efficient to a point. Whether we as consumers have benefited to the full extent I remain to be convinced.
What may be a benefit and in the ineterest of the suppliers and their investors may not be in the long term interest of the country as a whole.
It is not as though the market for their product can up and leave for something else the demand continues to grow."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0
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