Renewed pressure on energy suppliers to cut household bills as gas costs tumble.

Andy_WSM

http://news.sky.com/story/1363983/energy-bills-uk-gas-prices-hit-record-low

I can see the headlines now in the New Year...

Families struggle to pay their bills while energy companies announce record profits.

Greed!

tberry6686

Are you aware that although wholesale gas prices are currently low, the gas that is currently being used will have been purchased months ago at the prices that existed then. Price reductions in gas take time to filter through same with petrol.

It is also likely that the current lower price is being used to smooth out the upwards/downwards movement over a period of time.

The green levy on everyones bill has not been removed so still has to be paid.

In short there are a hundred and one reasons why the price has not yet reduced but I doubt if greed is one of them.

Bark01

2 Points need to be taken into account:

Products are dropping in price week by week and have dropped by more than wholesale costs in the last year, is this ever reported? If you want to see the reduction engage in the market. Even the PPM market has shown signs of life recently.

Standard products have not dropped in price since Q1 2014 so have not fully factored in reduced wholesale costs. The latest figures from Ofgem show this is a short term decrease and wholesale cost will be back to normal by this time next year. I’m afraid I can’t see anyone reducing their standard tariff whilst Labour threaten to force suppliers to freeze prices next year. Npower have stated that they would have reduced price prices if it wasn't for the threat of a price freeze.

System

The 'winter season' is already about 3 weeks late so energy sales are down = less profit. And, energy companies will resist cutting prices ahead of the coming General Election: some have said as much.

Andy_WSM

Hengus wrote: »

The 'winter season' is already about 3 weeks late so energy sales are down = less profit. And, energy companies will resist cutting prices ahead of the coming General Election: some have said as much.

I made the point elsewhere about Labour sticking their mucky snout in causing artificially high prices right now.

Andy_WSM

tberry6686 wrote: »

Are you aware that although wholesale gas prices are currently low, the gas that is currently being used will have been purchased months ago at the prices that existed then.

Very aware, but are you aware the wholesale prices have been in steady decling since last Winter? There really is no excuse other than greed.

If the wholesale prices goes up it's an almost immediate jump in retail prices (certainly within a few months), when they go they other way, well, the retail prices simply don't!

There's really no need to make excuses for the energy companies, unless of course you work for them, or the Government, in which case, I understand.

tberry6686

don't work for any of the gas or electricity supply companies and definitely not the government - far too much self respect for that but am aware that in percentage terms the gas companies profit margins are low compared to most other industries and that gas/electricity prices in this country are lower than most EU countries