Why aren’t energy prices falling faster?

Chris_b2z

BarelySentientAI said:

Chris_b2z said:

I'm not an accountant but the energy sector profits do look fairly healthy to me - 

https://www.ibisworld.com/united-kingdom/industry-trends/industries-highest-profit-margin/

Just to clarify this for people - the companies included in that list are:

National Grid Electricity Distribution
Electricity North West
Northern PowerGrid
UK Power Networks
Scottish & Southern Energy Networks
Scottish Power Energy Networks
SGN
Cadent
Wales and West Utilities

Return on investment is regulated for all of them, and they have to submit plans for any investments they want to make (which are refused if they are not value for money).

Cross-subsidy for any that are part of a larger group is prohibited due to regional monopoly regulations.

Thank you. Can you also confirm that these companies have nothing to do with oil and gas exploration as was previously stated.

Netexporter

Chris_b2z said:

BarelySentientAI said:

Chris_b2z said:

I'm not an accountant but the energy sector profits do look fairly healthy to me - 

https://www.ibisworld.com/united-kingdom/industry-trends/industries-highest-profit-margin/

Just to clarify this for people - the companies included in that list are:

National Grid Electricity Distribution
Electricity North West
Northern PowerGrid
UK Power Networks
Scottish & Southern Energy Networks
Scottish Power Energy Networks
SGN
Cadent
Wales and West Utilities

Return on investment is regulated for all of them, and they have to submit plans for any investments they want to make (which are refused if they are not value for money).

Cross-subsidy for any that are part of a larger group is prohibited due to regional monopoly regulations.

Thank you. Can you also confirm that these companies have nothing to do with oil and gas exploration as was previously stated.

The are DNOs and pipeline operators.

BarelySentientAI

Chris_b2z said:

BarelySentientAI said:

Chris_b2z said:

I'm not an accountant but the energy sector profits do look fairly healthy to me - 

https://www.ibisworld.com/united-kingdom/industry-trends/industries-highest-profit-margin/

Just to clarify this for people - the companies included in that list are:

National Grid Electricity Distribution
Electricity North West
Northern PowerGrid
UK Power Networks
Scottish & Southern Energy Networks
Scottish Power Energy Networks
SGN
Cadent
Wales and West Utilities

Return on investment is regulated for all of them, and they have to submit plans for any investments they want to make (which are refused if they are not value for money).

Cross-subsidy for any that are part of a larger group is prohibited due to regional monopoly regulations.

Thank you. Can you also confirm that these companies have nothing to do with oil and gas exploration as was previously stated.

At least two of those are in groups that also contain an exploration business and a generation business, but none are directly associated with that sector.

spot1034

What you have to remember with the exploration companies, who can and recently have made large profits, is that they can and sometimes do also make horrendous losses which they have to bear without any support, and usually not much sympathy, from anyone else. 

Scot_39

Or that when they do post the profits quoted in media most are earned overseas and outwith the realms of much of the special taxes on them.

The specials that lift coropration tax from the old 19 to c40% - only apply on uk territorial production profits.

Multinational Oil companies do not have to register in UK.

We should be greatful for those who are and pay even the normal taxes - on staff wages and profits - now 25% corporation tax for large profit companies

They could easily jump ship to Ireland and pay just 15% corporation tax - the lowest in EU iirc - the reason big multinationals have EU headquarters there.

Given the headlines in the left wing media every time they report those profits and pay UK taxes they don't have to - I am surprised they don't just do so.

It's not difficult - Shell only recently moved it's split off NL HQ and reporting to UK.  It could easily move the combined operation again.

The UK is not isolated from the potentially complex realities of global multinationals - business structuring and taxation.

They just dont make for good clickbait headlines.