An explanation as to why your bills aren't dropping.

[Deleted User]

Andy_WSM wrote: »

Blame Millipede...

http://www.bbc.co.uk/news/uk-politics-30766452

Dont be stupid ! as Ed Miliband has been saying today the freeze is , of course, an upward freeze not a downward. I dont suppose they thought about the oil price falling through the roof, but my local MP for Doncaster North would nt be that stupid now..would he, as to freeze a downward price. "Millipede" is a bit disrespectful also. You should be keeping your tribal alliegiances out of a money saving forum and not get into petty party politics

Andy_WSM

sacsquacco wrote: »

You should be keeping your tribal alliegiances out of a money saving forum and not get into petty party politics

What's political about calling someone I dislike Millipede? I think the entirity of your post contains far more political nonsense than anything I have posted in the entire thread.

WestonDave

sacsquacco wrote: »

Dont be stupid ! as Ed Miliband has been saying today the freeze is , of course, an upward freeze not a downward. I dont suppose they thought about the oil price falling through the roof, but my local MP for Doncaster North would nt be that stupid now..would he, as to freeze a downward price. "Millipede" is a bit disrespectful also. You should be keeping your tribal alliegiances out of a money saving forum and not get into petty party politics

You miss the point. Because he threatened not to allow them to increase prices, they all went out and bought their gas for the relevant period so they knew what price they would be paying and could set prices accordingly- matching their inability to raise prices with similarly fixed costs. The problem is that this happened at the top of the market so they fixed their costs in at the top - they now have to buy that gas at those top prices which in turn means they have to maintain retail prices to recover their money. It was always a very stupid thing for Milliband to say and demonstrated his lack of understanding of how the market would react to it.

zeupater

sacsquacco wrote: »

Dont be stupid ! as Ed Miliband has been saying today the freeze is , of course, an upward freeze not a downward. I dont suppose they thought about the oil price falling through the roof, but my local MP for Doncaster North would nt be that stupid now..would he, as to freeze a downward price. "Millipede" is a bit disrespectful also. You should be keeping your tribal alliegiances out of a money saving forum and not get into petty party politics

Hi

The issue isn't anything to do with a 'downward' freeze. What's happened is that the wholesale energy fuel market has become extremely price volatile recently - prices are falling rapidly at the moment, but could quite as easily rebound just as quickly if far-east demand recovers or middle-east production is reduced by the major players.

This leaves the UK energy market looking at the future of their respective businesses - do they reduce energy prices to the consumer whilst there's the promise of a multi-year price freeze hanging over the result of the general election which is only a few months away? .... If you think about it logically, if they did reduce the prices and Labour formed the next government (and fulfilled their freeze pledge) there are three possible outcomes ... foreign suppliers close their UK operations, the UK operations (as subsidiaries of parent organisations) enter administration, or massive government financial support is offered to the sector - whatever the outcome, economic growth and deficit reduction plans take a huge hit .... I doubt that the shadow chancellor is bright enough to have figured this out yet, and am almost certain that his boss still wouldn't have a clue even if it was explained in the most basic terms ...

Ah well, so much for the intellectual capacity of front bench politicians ... 'The difference between stupidity and genius is that genius has it limits' ...

HTH
Z