Big six energy firms face competition probe

Former_MSE_Michael

"The big six energy companies could face an investigation into whether they are preventing competition in the market"

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Big six energy firms face competition probe



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I_luv_cats

Give them time to cook the books!!!



Is this just another (long line) of probes ?



Where they generate and sell it too there's a possibility of jiggery-pokery



Won't hold my breath

captainhindsight_2

It is ridiculous that Labour allowed such a small amount of companies to have such a large share of the market, it just shows how competent they really are.

Its about time something was done about it to allow small companies to be a part of the market and create competition and more competitive prices for everyone.

Bluebirdman_of_Alcathays

captainhindsight wrote: »

It is ridiculous that Labour allowed such a small amount of companies to have such a large share of the market, it just shows how competent they really are.

Its about time something was done about it to allow small companies to be a part of the market and create competition and more competitive prices for everyone.

Is this a joke?

captainhindsight_2

Bluebirdman_of_Alcathays wrote: »

Is this a joke?

Nope, how many energy companies were there before Tony Blair became prime minister and how many are there now?

Labour clearly supports monopolies, just look at the likes of Tesco wiping out highstreets all over the UK all allowed to happen by a Labour government.

British Gas has a whopping 40% market share its scandalous and shouldn't be allowed to happen. There should be loads of energy companies all competing with each other to deliver true value to the consumer.

Smiley_Dan

Bluebirdman_of_Alcathays wrote: »

Is this a joke?

I can't see many punchlines right now.

Bluebirdman_of_Alcathays

captainhindsight wrote: »

Nope, how many energy companies were there before Tony Blair became prime minister and how many are there now?

Labour clearly supports monopolies, just look at the likes of Tesco wiping out highstreets all over the UK all allowed to happen by a Labour government.

British Gas has a whopping 40% market share its scandalous and shouldn't be allowed to happen. There should be loads of energy companies all competing with each other to deliver true value to the consumer.

I have never, am not planning to and probably never will vote Labour. But to say the current system of oligopoly is down to them is laughable. If you don't believe me, go to any European country. The days of meat from the butcher, veg from the grocer etc. have been dwindling for years. Even the French can't do without Carrefour. Consumers like it.

In terms of the energy specifics, in 3 years the big 6 have gone from 99% of the industry, to 95%

https://www.gov.uk/government/news/huhne-calls-energy-summit-for-small-suppliers

http://www.bbc.co.uk/news/business-26734203

The energy industry puts new competitors at a much higher advantage, they have an effective tax break when it comes to the green levies. The barriers to entry for new competition in energy are therefore much lower than other industries.

There are plenty of posters on here banging on about the success of Utility Warehouse's financial performance; if you don't believe there are other players.

I would be looking at banking, detergent and groceries for having too large a market share before energy every day of the week.

There is plenty wrong with the energy industry as we all know, but pure oligopoly isn't where we should be looking imho.

JezR

There were plenty of people warning at the time what the possible long-term adverse effects of the changes would be in the New Electricity Trading Arrangements brought in under the Labour Government in 2001, and the relaxation of constraints to vertical integration that had been put in the original privatisation scheme. A fairly transparent wholesale market was replaced by bilateral trading, and the integration subsequently internalised much of that anyway.

Cardew

captainhindsight wrote: »

Nope, how many energy companies were there before Tony Blair became prime minister and how many are there now?

.

There were probably 30 such companies who dived in when the market was deregulated, no doubt thinking it would be easy to 'make a killing.'


However they found that they couldn't make a profit so sold their customer base to the companies who quickly became the Big 6 dominating the market. That includes firms like Sainsbury and Virgin who simply lend their name to one of the Big 6.


My hope is that the investigation will have the power to uncover the relationship between the distribution companies and their parent generating companies e.g. British Gas/Centrica. In the past they have pleaded commercial confidentiality on pricing contracts.

captainhindsight_2

Bluebirdman_of_Alcathays wrote: »

I have never, am not planning to and probably never will vote Labour. But to say the current system of oligopoly is down to them is laughable. If you don't believe me, go to any European country. The days of meat from the butcher, veg from the grocer etc. have been dwindling for years. Even the French can't do without Carrefour. Consumers like it.

In terms of the energy specifics, in 3 years the big 6 have gone from 99% of the industry, to 95%

https://www.gov.uk/government/news/huhne-calls-energy-summit-for-small-suppliers

http://www.bbc.co.uk/news/business-26734203

The energy industry puts new competitors at a much higher advantage, they have an effective tax break when it comes to the green levies. The barriers to entry for new competition in energy are therefore much lower than other industries.

There are plenty of posters on here banging on about the success of Utility Warehouse's financial performance; if you don't believe there are other players.

I would be looking at banking, detergent and groceries for having too large a market share before energy every day of the week.

There is plenty wrong with the energy industry as we all know, but pure oligopoly isn't where we should be looking imho.

I'm not saying there aren't any other energy companies because there are, what I am saying is such a large proportion of the market should not be in the hands of such few companies and it should never been allowed to happen.

Things are obviously moving in the right direction and hopefully it will lead to a fair and competitive market.

BusyBoy

I never believed that something as essential as energy could be left with six private companies without any regulation and expect a free and fair competitive market. The market was never competitive from day one of privatisation. As a consumer it always felt to me to be a collusive operation between the six. It didn't really need OFGEM to come out a say that the six may have been preventing competition, we the consumers have known it for years.

They gave an impression of competition what with the price comparison sites also being in with it. I have always been a serial switcher and never really managed to save more than the odd £50 a year each time that I switched. Then over the years we have had firms duping vulnerable consumers at the door step into switching to expensive deals. These companies have been raking it for years. And now its going to take another 2 years for the findings of collusion to come out.

What I want know is - How are these companies going to compensate us for many years that we have we have been fleeced by them. Some of us had to make a choice between eating or heating?
And we have had some of the most cold winters centuries.