Energy Talking Pointsk

Graywisdom

After the recent heatwave wouldn't it be great if we had a really mild winter and the suppliers were unable to make any massively obscene profits!
One other point (possibly niave),, Esso Energy are extolling the fact that their supplies are from 100% renewable sources. The common reasoning is that the massive increase in energy is due to the wholesale cost of Gas and Oil. Therefore how does Esso warrant the same increases as fossil fuel suppliers? Also I cannot see on any market website a listing of 'futures' for renewable energy. Are they just coat-tailing other suppliers!

[Deleted User]

Graywisdom said:

After the recent heatwave wouldn't it be great if we had a really mild winter and the suppliers were unable to make any massively obscene profits!
One other point (possibly niave),, Esso Energy are extolling the fact that their supplies are from 100% renewable sources. The common reasoning is that the massive increase in energy is due to the wholesale cost of Gas and Oil. Therefore how does Esso warrant the same increases as fossil fuel suppliers? Also I cannot see on any market website a listing of 'futures' for renewable energy. Are they just coat-tailing other suppliers!

That would be great if the suppliers were making ‘massively obscene profits’. They are not, which is why Ofgem is changing the Cap formula to take into account some forward pricing. Ofgem hopes that this will avoid future supplier failures: failures that all consumers pay for.

Shell Energy Retail made a  loss of £121M last year. Octopus Energy made about £11.50 profit a customer.

‘Greenwashing’ allows suppliers to claim that all their energy is from renewable sources. Suppliers buy what are known as REGOs (Google it). There are 3 energy suppliers that are exempt from the Ofgem Cap: Ecotricity; Good Energy UK and Green Energy: look at their tariffs.

The price of electricity is based on marginal costs: that is, the cost of the highest generation component which at the moment is gas. As I post 35% of our electricity is generated using gas (19.85% from solar and 6.24% from wind). The Government has initiated a review on on the use of marginal cost pricing.

PS. All ‘massively obscene’ profits are taxed. Taxes pay for schools; hospitals; defence etc. 

The TOP 100 LISTED COMPANIE

• The TTC of the 100 Group was £77.1bn in 2020/21, including:
  • £24.7bn in taxes borne
  • 
    Taxes borne by a company are those that represent a cost to the company and are reflected in its financial results, e.g. corporation tax, employer NIC and business rates, etc.
  • 
    
  • £52.4bn in taxes collected on behalf of government
    Taxes collected are those which are generated by a company’s operations, and are not a tax liability of the company, e.g. income tax deducted under PAYE and net VAT, etc. The company generates the commercial activity that gives rise to the taxes and then collects and administers them on behalf of HMRC.
  • 
    
• The 100 Group’s total tax contribution represented 11.4% of total government receipts in 2020/21.