Energy bills will rise by a typical £139/year for 11 million households in October, as regulator Ofgem revealed the new price cap level this morning – but most can beat the hikes by switching supplier....
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'Energy bills set to rocket for millions as price cap is hiked by £139/yr to its highest-ever level – but many can save £240/yr by switching'
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MSE News: Energy bills set to rocket for millions as price cap is hiked by £139/yr
edited 6 August 2021 at 8:49AM in Energy
23 replies 2.3K views
MSE_Andrew MSE StaffMSE Staff
edited 6 August 2021 at 8:49AM in Energy
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How can they justify hiking prices so much during a pandemic. Share holders should bear the brunt and profit expectations should be downgraded. All of the utilities companies should not cause more financial hardship.
Im disgusted with this.
Their moral compass needs some serious adjustment.😤😤😤😤😤😤😤
Very few of the smaller suppliers actually have shareholders as such, and many suppliers are making significant losses. A former CEO of Ofgem is predicting that there will be a raft of energy supplier failures this coming Winter. Sadly, the cost of these failures will be added to the Cap in April next year.
The UK energy market is not in a good place.
If there were any governments that weren’t owned by them we could fight back. Centralisation of assets and wealth has ruined democratic societies.
The wholesale energy price has gone through the roof, the rises on the wholesale market are far more than is being passed on to consumers.
Why? And it needs to be a proper reason, not just "I don't like it".
The utility companies are not causing financial hardship, the are providing a service and charging for it.
Shouting does not achieve anything. Their "moral compass"? I would question yours, you seem to expect to receive a service below cost, because you do not want to pay the cost.
The financial services sector is first and foremost a business, second it is owned by shareholders who engage in that business for a (very low) return on their investment. The choice is that either the sector offers a service at a profit, or that service is not offered.
So do you expect the people who work at utilities or financial services to work for free? Do you expect shareholders to invest and risk their money for no reward? Or would you rather just shout and post emojis?
Financial services have a net margin of around 2-3%, it is similar for utilities. The government makes 5% VAT on utilities, more than the profit. If all of the profit was eradicated from mortgages and they were somehow done on a charity basis the average cost of a mortgage would drop by £4 pcm, the average utility bill would drop by around £2 pcm.
Markets can be manipulated to an extent, but not in the way you think, most of the time they just predict trends, which are fairly obvious. Even MSE and Martin Lewis have been saying again and again for 2-3 years now that energy bills will be rising long term due to the global trends.
People can vote for whoever they want, but at the end of the day we do not want some lunatic fringe wholesale redistribution, most people are quite happy with their lives.
Just as a point, we have some of the cheapest utilities in Europe, away from countries where they are subsidised (mostly in Eastern Europe), we have about mid priced petrol, but the profit is actually the second lowest in Europe, most of the cost of petrol is tax and duty. We have some of the cheapest financial services in the world, lowest interest rates, most free banking etc.
If they switched they would save money. There is help out there for them to enable them to switch to a cheaper tarrif.
Sorry, not much sympathy especially when utility companies put on their bills when a tarrif they offer can be bettered by another tarrif offered by themselves - not perfect but hey......how much effort does it take to contact to be put on a cheaper tarrif offered by the same company?