MSE News: Co-op Energy trims price hike as green tax cut expected

Bark01

footyguy wrote: »

No they aren't. With both companies it is totally reliant on the government reducing the levies the suppliers have to pay.

EDF took a wild guess (and reserve the right to re-assess the situation if the government don't reduce the levies by the amount they anticipate)
With the Co-op, it seems they will only give us about 1/3rd of any reduction in levy the goverment allow them.


Did you not read my previous post at all?

Ok, it may only have been 3 of the big 6 suppliers that were answering questions at the time, but the big 6 do supply over 95% of british households. I don't know how they could have made their answers any clearer.

They are not passing on the full increase of government levies (which have already happened) but may do so in the future. So as of right now the suppliers are taking the hit. So customers are benefiting

If the government don't reduce the levies then then the suppliers will increase prices to match the rises in levies that were introduced in October 2013.

Bark01

smala01 wrote: »

Profits on average for a dual fuel customer are about £60, so would the problem be fixed if all our bills were £60 loweer? I dont think so...

smala01

The £60 has risen to £85 in the latest OFGEM SMA.

BUT the £60/85 is only the profit from the supply business it doesn't factor in the profit from the wholesale side of the business.

Each of the big suppliers makes most of there profit from selling energy to themselves at the market rate rather than the cost rate. So the actual profit per customer is hidden. Unless there is transparent vertical integration, the actual profit per customer is hidden. The OFGEM SMA is a poor guide of profitability.

Pincher

Assuming the removal of ECO subsidies goes ahead,
I expect the new lower tariffs will start appearing AFTER the winter is over.

So the people who abandoned their April 2014 fix in favour of a January 2017 fix will have

1. Lost a cheap winter on the April 2014 fix.

2. Paid over the odds for this winter at January 2017 rate.

3. Might have to pay a penalty to switch to another tariff to avoid paying over the odds for the next three years.

The Scottish Power March 2015 fix is below standard tariff, so those coming off the SP November 2013 fix will have achieved the critical path if they

1. Got £70 cashback through MSE in August 2012

2. Was alert enough to grab the SP March 2015 fix during the ten day window before it was withdrawn.

3. Switch penalty free in April 2014 using the Freedom clause to a post ECO subsidy removal tariff.

Marry the right woman at the right time, and you are happy.
Marry the wrong woman, and you are miserable, and then the divorce is gonna cost you.

So the lesson is, marry a Scottish lass who is frugal with money?

benwarwick123

I just saw this on the BBC's red button service and it says RWE parent company of Npower is to shed 6,750 jobs across Europe due to the low wholesale prices of energy. All this talk from the energy companies about rising wholesale prices couldn't be further from the truth.
http://www.bbc.co.uk/news/business-24937415

kingstreet

Co-oP is now offering a fix until March 2017.

It's marginally better than the EDF fix in the MSE fixed tariff guide.

Nada666

What do you use to receive a fix that lasts until March 2017? That is one long high. Paul Flowers will be happy. (Yes, yes, I know, Co-operative Group is not Co-operative Energy.)

chanz4

http://www.theguardian.com/uk-news/2013/nov/17/co-operative-bank-chairman-drugs-paul-flowers is how ethical the company is

smala01

spikyone wrote: »

As I've previously posted on these boards, that's absolutely not true, because that amount doesn't include the profit made by the generation side of energy companies. Energy companies generate the energy, then make a useful profit by selling it to themselves, then make a much smaller profit when they sell it to the end user.

If you take the parent company profit (both retail and generation) it equates to an average of 7.5% across the big six.

Your welcome to your own opinion if you feel this is excessive, but i maintain even if you cut bill by 7.% it doesn`t make a jot of difference.

[/QUOTE]

spikyone wrote: »

Only 26.6% of UK energy resources are imported (http://www.energy.eu/) - so it's highly unlikely that competition for resource is a significant contributor.

If we exclude nuclear and renewables which have huge fixed costs and are subsidised and not subject to fair market – It’s the opportunity cost of exporting coal and gas that determines the price, not the UK demand necessarily.


Smala01