Energy news in general

The_Green_Hornet

Shell’s ‘obscene’ $5bn profits prompt outrage amid climate crisis

Campaigners criticise plan to increase oil and gas production despite extreme heat in Europe

Shell has reported profits of just over $5bn (£3.9bn) for the second quarter of the year, prompting outrage among campaigners who called the figures obscene, and a protest at the company’s London headquarters.

https://www.theguardian.com/business/2023/jul/27/shell-profits-oil-gas-price-shareholders

Scot_39

The_Green_Hornet said:

The BBC have since changed their article to read:

British Gas: Anger as energy bill change leads to record profits

There has been an angry reaction to British Gas reporting record half-year profits as millions of households continue to struggle to pay for energy costs.

British Gas reported profits of £969m after price cap rises allowed it to make more money from household bills.

Regulator Ofgem said the bumper profits were a "one-off" due to the changes.

But poverty campaigners said the profits "are a further sign of Britain's broken energy system".

The BBC has far too regularly sunk to the same low levels as others in the press.

Click bait style headlines designed deliberately to rouse the HYS warriors.

If read article, it states firms made loses in 2022, profits from 1st 6m in 2023 c£100 average.

It therefore really didn't impact customer bills to any meaningful level - as the period in question for the profits was entirely under EPG.

So why quote poverty campaigners at all - other than as a typical politicised attack on govt and industry.

And the chances are those who the poverty charities represent - will not be the ones paying the net future taxes (after their govt services costs) to cover EPG debt.

Ofgem weak regulation then cap lost 30+ suppliers.  Its reliance on the switch to save failed to save the millions who didnt or the minority who couldnt switch to new cheaper suppliers a single penny.  And yet we all - including those who didnt save a penny - paid for that failure - we still are via SC and cap network costs.

The low profit and continual hounding of suppliers is about to lose us another as Shell looks to sell up.  Who can blame them - given the political and media hounding typified in such articles.

Scot_39

MattMattMattUK said:

The_Green_Hornet said:

Record British Gas profit after energy bill change

British Gas has reported record half-year profits of £969m after rule changes allowed it to make more money from household bills.

About half of the profit was due to the changes made by the energy regulator.

Ofgem had raised the allowance suppliers can claim from household bills to make up for costs incurred during the pandemic.

https://www.bbc.co.uk/news/business-66315117.amp

Before the usual culprits come along and rant about how they are robbing their customers, British Gas Retail currently has around 12.3 million customers, that means that they made around £78.78 profit over six months per customer, or £13.13 per month, so it is not as if them even making no profit would have significantly changed people's bills. Also note that BG Retail lost £2.6 billion due to the price cap previously, so even at the current rate it will take two and a half years before they have broken even from that. 

And it would be future taxpayers - future net taxpayers at that - not all customers.

The profit - average £100 z came from 1st 6m in 2023 - entirely under EPG at fixed £2500.

Ofgem £4279 and £3280 isolated from domestic bills by EPG of £2500 - the rates that were thrn used on domestic bills at all.

Lowering the Ofgem cap by £100 or say £200 as only 6m - would not have reduced below £2500.  So no immediate impact on consumers.

[Deleted User]

littleteapot said:

Yes tantrums do seem to be the order of the day in lobby groups 'championing' cost of living related issues, and the media reporting thereof!

Although energy companies that produce, as well as retail energy have been making eye-watering profits, it is certainly regressive to legislate retail profit margins to the point where they are no longer viable businesses and go bust, resulting in even less competition than we have now.

The only way to stop humongous producer profiteering is to have fully state-owned generation and supply. But that's another story and most of us over 40 know both the benefits and drawbacks of that model...

And none of us have any idea what it would cost consumers to buyout all the existing energy suppliers. When people propose re-nationalisation, I suspect they think it is just a case of a Minister standing up in Parliament and making a statement. 

CSI_Yorkshire

[Deleted User] said:

littleteapot said:

Yes tantrums do seem to be the order of the day in lobby groups 'championing' cost of living related issues, and the media reporting thereof!

Although energy companies that produce, as well as retail energy have been making eye-watering profits, it is certainly regressive to legislate retail profit margins to the point where they are no longer viable businesses and go bust, resulting in even less competition than we have now.

The only way to stop humongous producer profiteering is to have fully state-owned generation and supply. But that's another story and most of us over 40 know both the benefits and drawbacks of that model...

And none of us have any idea what it would cost consumers to buyout all the existing energy suppliers. When people propose re-nationalisation, I suspect they think it is just a case of a Minister standing up in Parliament and making a statement. 

Yes, it often seems to be "renationalisation without compensation" that gets suggested - there are a few countries that have tried that in 'peacetime' including 1950s/60s Venezeula and Cuba, 1990s/2000s Zimbabwe and 2022 Russia.

All upstanding beacons of the international community.

Scot_39

To be fair McDonnell did acknowledge they would have to pay.

Just no one thought his funding method  was likely to fly under EU rules (but that block has now gone for at least uk based suplliers I guess).

Inability to impose nationalisation - has always been on the far lefts reasons for wanting out of EC /EU.

It was one of my pros that EU prevented it on my pros/cons list for remaining in 2016.

michaels

The_Green_Hornet said:

Shell’s ‘obscene’ $5bn profits prompt outrage amid climate crisis

Campaigners criticise plan to increase oil and gas production despite extreme heat in Europe

Shell has reported profits of just over $5bn (£3.9bn) for the second quarter of the year, prompting outrage among campaigners who called the figures obscene, and a protest at the company’s London headquarters.

https://www.theguardian.com/business/2023/jul/27/shell-profits-oil-gas-price-shareholders

I think there should b a ban - on quoting numbers out of context.

Shell is a huge multinational company, this number is not that large in terms of return on investment compared to most companies.

And they supply oil and gas, perhaps those who are complaining should reduce their energy consumption by going cold and not travelling especially not flying aboard - didn't think so.

Scot_39

News media have their own agendas.

And a need to attract attention.

Click bait or attention grabbing headlines attract that attention.

The Guardian is hardly renowned for its political independence.

Just as per Telegraph, the Sun (although it did flip sides for Blair) Mirror, Mail etc etc

Sea_Shell

Scot_39 said:

News media have their own agendas.

And a need to attract attention.

Click bait or attention grabbing headlines attract that attention.

The Guardian is hardly renowned for its political independence.

Just as per Telegraph, the Sun (although it did flip sides for Blair) Mirror, Mail etc etc

Which news outlets are truly independent, with no political bias or agenda?   Are there any?

dealyboy

Sea_Shell said:

Scot_39 said:

News media have their own agendas.

And a need to attract attention.

Click bait or attention grabbing headlines attract that attention.

The Guardian is hardly renowned for its political independence.

Just as per Telegraph, the Sun (although it did flip sides for Blair) Mirror, Mail etc etc

Which news outlets are truly independent, with no political bias or agenda?   Are there any?

The Independent ?