Energy price cap - cap the profits

EssexHebridean

@matt_drummer - so IS that how the allowance was intended to be applied? As I said, I don't know the answer to that one, hence being very careful not to imply wrongdoing. 

matt_drummer

EssexHebridean said:

@matt_drummer - so IS that how the allowance was intended to be applied? As I said, I don't know the answer to that one, hence being very careful not to imply wrongdoing. 

I don't know, I haven't looked because I don't really care.

But recognising it at the earliest opportunity gave them no financial advantage because they have to pay corporation tax earlier than if they had deferred the allowance (income) to a later period.

I am sure that they and their auditors would have included the allowance in the correct accounting period as deferring it would have given them a cash flow advantage.

The only reason a company would include income earlier than it should have done is to make the company's performance look better than it really was. That might be done to satisfy lenders and investors.

matt_drummer

I really don't understand why any normal customer would concern themselves with what profits any energy retailer makes in this country. Especially those customers that haven't got a clue about energy supply or accounting!

They make so little per customer that even if they made no profit at all, most of us would see barely any difference in our bills.

Why shouldn't they make a profit?

Who wants to run a business where you have to continue to supply customers even if the can't/refuse to pay?

Who wants to run a business where if one average customer doesn't pay it wipes out the profits from fifty other average customers who did pay?

Who wants to run a business where somebody else dictates what you can charge, and at times, forces you to sell for less than you paid?

The energy retailers deserve every penny of profit they make in my opinion.

MeteredOut

QrizB said:

susansue said:

What do you think?

I think this thread will last 3-4 pages before being closed. During those 3-4 pages, we'll get the usual suspects claiming that energy suppliers are making huge profits by pointing to the financial data of eg. BP and Shell, big petroleum companies who have zero presence in the UK domestic energy market.

We reached 5 pages. Congratulations everyone 

EssexHebridean

MeteredOut said:

QrizB said:

susansue said:

What do you think?

I think this thread will last 3-4 pages before being closed. During those 3-4 pages, we'll get the usual suspects claiming that energy suppliers are making huge profits by pointing to the financial data of eg. BP and Shell, big petroleum companies who have zero presence in the UK domestic energy market.

We reached 5 pages. Congratulations everyone 

You've forgotten the next stage though - when the thread get reported, half a dozen posts get removed and then it gets closed at....well, 3 - 4 pages...! 

Gerry1

EssexHebridean said:

MeteredOut said:

QrizB said:

susansue said:

What do you think?

I think this thread will last 3-4 pages before being closed. During those 3-4 pages, we'll get the usual suspects claiming that energy suppliers are making huge profits by pointing to the financial data of eg. BP and Shell, big petroleum companies who have zero presence in the UK domestic energy market.

We reached 5 pages. Congratulations everyone 

You've forgotten the next stage though - when the thread get reported, half a dozen posts get removed and then it gets closed at....well, 3 - 4 pages...! 

You've forgotten the Next + One stage though - when the thread get reported, half a dozen posts get removed, a knowledgeable and helpful poster (think Dolor et al) gets banned and then it gets closed at....well, 3 - 4 pages...!

susansue

Thank you for all the informative replies. I have learned a lot and particularly that Ofgem were ineffective and asleep on the job.
https://committees.parliament.uk/committee/127/public-accounts-committee/news/174285/pac-ofgem-failures-come-at-considerable-cost-to-energy-billpayers/