Energy companies competition

BazNoResults

All remaining energy suppliers seem to offer the same pricing. When privatised it was reasoned that competition  between them would drive prices down.
As this no longer exists should they now be nationalised?

400ixl

The current position of the cast being capped is the reason, whether this is short term or long term remains to be seen. As the caps are only going in an upwards direct, the fixed rates are currently higher than the capped rate, but are in some level of competition.

You also have some other rates which include cheaper rates off peak for electric cars etc.

So no, the competition is still there, just not widely at the current moment, so no need to nationalise, they are essentially controlling the price through the caps.

ripple34

They are not all priced the same, though. Of course it's almost impossible to know this at the moment as the comparison tools have all stopped 'due to the (latest) continuing crisis'.
I moved meaning a change from EON to British Gas and the standing charge doubled. I asked the (India-based) BG agent why this was so and he informs me prices have gone up 'because Russia THREATENED to cut off the supply'. Any old garbage, really. Just mention 'Covid' or 'Russia' these days and business expects a free pass. 
In researching all this I find there are also regional differences in energy charges - why is this not public knowledge?

Pollycat

This board would be more appropriate for your question:
Energy — MoneySavingExpert Forum

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MattMattMattUK

BazzMSE said:

All remaining energy suppliers seem to offer the same pricing. When privatised it was reasoned that competition  between them would drive prices down.

The price cap has broken the market, for much of the last year it has forced suppliers to sell their product below cost, which is why so many went bust, now it allows them to sell their product at a very narrow margin (around 2-3% maximum). The government have in the short term broken the market.

BazzMSE said:

As this no longer exists should they now be nationalised?

Which part? If you mean the suppliers there is no need, the government could just set up a supplier and sell at cost, but that would at most save 3% from bills and in reality less. If you mean the wider exploration, extraction, refining business then absolutely not because it would cost trillions.

pochase

ripple34 said:

They are not all priced the same, though. Of course it's almost impossible to know this at the moment as the comparison tools have all stopped 'due to the (latest) continuing crisis'.
I moved meaning a change from EON to British Gas and the standing charge doubled. I asked the (India-based) BG agent why this was so and he informs me prices have gone up 'because Russia THREATENED to cut off the supply'. Any old garbage, really. Just mention 'Covid' or 'Russia' these days and business expects a free pass. 
In researching all this I find there are also regional differences in energy charges - why is this not public knowledge?

Not sure why you believe this is not public knowledge. The only reason would be that the "public" ignores it.

It is part of the Ofgem documentation. It was discussed in the press. Supplier price lists like this one 

https://www.edfenergy.com/sites/default/files/r1299.pdf

show the differences, and why do you think you need to give them your address when you want a quote?


In regard to the missing competition, it is quit easy, if you are forced to sell with loss, or if you are lucky with very small profits (2%) you will not compete to make even more loss.

Most suppliers don't even want you on their SVT because new customers mean more loss, so they refuse to take on new customers.

Evan3020

And governments are the worst at running businesses.
If you got your wish we would still be driving Morris Marinas and Austin Allegros

[Deleted User]

BazzMSE said:

All remaining energy suppliers seem to offer the same pricing. When privatised it was reasoned that competition  between them would drive prices down.
As this no longer exists should they now be nationalised?

There is a minor complication associated with re-Nationalisation. Unless the Government brings in War Powers and has the the right to requisition services, then re-nationalisation would require the Government to buyout all the suppliers. The cost of this would run to many £Bn - paid for either by taxation or by existing energy consumers in the form of higher bills.

A politician made the point this morning about Water. He opined that privatisation wasn't perfect but there has been considerable investment in the infrastructure that Governments might not have been willing to pay if there were higher priorities for public spending.

wittynamegoeshere

Evan3020 said:

And governments are the worst at running businesses.
If you got your wish we would still be driving Morris Marinas and Austin Allegros

That's a false comparison.  Many cars made by private companies at that time were also terrible.  As time goes on, most things improve.  There's absolutely no reason why a state-run industry has to be as bad as any in the past, and lots of reasons why they could do a lot better than the rigged market we're now lumbered with.

BUFF

[Deleted User] said:

A politician made the point this morning about Water. He opined that privatisation wasn't perfect but there has been considerable investment in the infrastructure that Governments might not have been willing to pay if there were higher priorities for public spending.

Scottish Water is still "nationalised" yet has continued to invest (& above the level of the "average" water company) in it's infrastructure.

Evan3020

Capitalism is terrible but not as terrible as the alternatives.