Government gives in to energy suppliers

TruckerT

CLAPTON wrote: »

ofgem have considered whether the market i s rigged (i.e. a cartel is operating)

broad conclusions here:-



https://www.ofgem.gov.uk/retail-market-review/background-energy-supply-probe

In a very few words in the opening paragraphs of your quote, OFGEM completely exonerates the Big6 of any misconduct regarding their prices. It gives no figures, and proceeds to a lengthy description of a range of changes in the window-dressing departments of the big 6 suppliers.

In the last few years, I have not noticed any change at all in the way in which energy suppliers operate. Their call centres are equally unavailable, their information is equally unreliable, and their paperwork is equally unfathomable.

But their price rises continue relentlessly, and nobody seems to be able to explain why.

TruckerT

Loughton_Monkey

CLAPTON wrote: »

ofgem have considered whether the market i s rigged (i.e. a cartel is operating)

Ofgem are a complete load of "bankers".

So-called 'regulators' are just like a pack of puppy Jack Russells. A load of dogs trained to yap like hell, but couldn't harm you for toffee. Energy companies presumably treat them with the absolute derision they deserve.

I perceive them as equivalent to some wet vicar during the Tottenham riots. There is a hoard of hooligans rampaging, pillaging, and stealing as much as they can, admidst all the mayhem and noise, and some little vicar cowering round the corner trying to whisper "this is not a good idea.... the lord said.... I really think..... it would be a good idea if.... now come on lads.... "

Price changes should be authorised by the regulator who could say to different suppliers in turn, things like....

1. British Gas! You have the largest admin cost in the world, so until you've reduced them to X%, no rate rise for you....
2. NPower! The wholesale prices you are paying - compared to others - is the joke of the century. No rate rises until you start paying the market rate.....
3. Scottish & Southern! Your directors salaries & bonus are laughable. You are conning the public. Reduce your rates immediately....

I have just filled in the company names at random, because I don't have the information that ofgem do, but you get the idea....

grizzly1911

It's a bit like trying to tie the personal investment market down and make pricing more competitive. Regulated salesmen.


Look how long that has taken and how the cost has remained pretty much the same just apportioned differently.

Obviously there is a load more costs involved, massive complex engineering together with logistics.

TruckerT

michaels wrote: »

With a 'big one' there would be no 'price discovery' - how would anyone know if they were being efficient or not? Profit would probably be regulated to a percentage of turnover thus for the supplier it would actually make sense to be as inefficient as possible as the bigger the cost base, the bigger the profit they could make

The Big6 seem to be operating in exactly the same way as the pre-Thatcher nationalised monopolies. Price Discovery is upwards rather than downwards, and customer service is non-existent.


Amazon is experimenting with using drones in order to provide a 30 minute delivery service for people within a 10-mile radius of a distribution centre. My pizzas take longer than that, sometimes.


That's what they call Competition! It's also a whole lot of fun.


TruckerT

grizzly1911

[QUOTE=TruckerT;6396942


Amazon is experimenting with using drones in order to provide a 30 minute delivery service for people within a 10-mile radius of a distribution centre. My pizzas take longer than that, sometimes.




TruckerT[/QUOTE]

Just hope some donut munching, coke swilling, jarhead based in an air cooled bunker in Arizona doesn't get the routes mixed up. Might get more than you bargained for.

CLAPTON

there are practical things that can be done

- separate of electricity generation from distribution
- ensure transparency in the accounts
- proper transparency of green taxes
- proper audit of green taxes
- proper audit of the outcomes of green levies
- publication of green power production figures
- encourage further competition

It would then be possible to see what the real costs and profits were.

Scrap the nuclear deal which guarantees a doubling in wholesale electricity prices in 10 years (before inflation adjustments).