The illusion of rising energy prices.

wittynamegoeshere

wild666 said:

Customers won't see a drop in prices until the suppliers have made back all the losses they have incurred by those on the SVR either through choice or slipping from a locked deal to SVR as the deal they were offered was far higher than being on the SVR.

This ignores competition.  If energy prices were to drop massively then, if the existing suppliers didn't drop their prices a new upstart company with no debt could spring up and outprice all the old companies.

I'm sure the big companies made plenty during the good times.  They won't have a specific debt to repay from all this, they just won't be handing their shareholders as much this year, but they'll forget about it and live in the present.

Companies can't just charge whatever price they like.  They all charge as much as they think they can get away with, and this is dictated by how much competition they have.