MSE News: EDF to hold prices until 2014, as energy bosses appear before MPs

edited 29 October 2013 at 6:38PM in Energy
20 replies 3K views
Former_MSE_DarrylFormer_MSE_Darryl
210 Posts
edited 29 October 2013 at 6:38PM in Energy
"Energy giant EDF has pledged not to hike prices before the end of the year, as power bosses were grilled about price hikes by a committee of MPs...."
Read the full story:

EDF to hold prices until 2014, as energy bosses appear before MPs

OfficialStamp.gif

Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
«1

Replies

  • sheffield_ladsheffield_lad Forumite
    2K Posts
    Part of the Furniture Combo Breaker
    ✭✭✭
    When are we all going to wake up,

    The UK is in the same boat as most other European countries energy prices are rising we are no dearer or cheaper just somewhere in the middle.

    Instead of gojng on about gready energy companies, shareholders, fat cats, nationalisation etc why don't we just face it.

    The era of cheap fuel is over we had a great run but for the last 5yrs and for the next 50-100 (bar them not getting cold fusion to work), we are all (the world), going to have to pay more for our energy be that petrol, gas or electricity.
  • shadowspy24shadowspy24 Forumite
    238 Posts
    Part of the Furniture 100 Posts Combo Breaker
    ✭✭
    So EDF will announce price rises on the 1st January then...

    I've been watching the grilling and so far if I understand correctly, the big six have retail division and an energy generating division. The energy generating division then sells energy to the retail division at a "fair price" and then the retail division then sells it onto the customer and passes on any increases in costs.

    So basically they're selling energy to themselves and charging whatever they feel like for it and then blaming a rise in prices which they themselves set! Ridiculous...
  • Stephen Fitzpatrick, managing director of smaller firm Ovo Energy, told MPs he "can't explain" the price rises being imposed, because his company was buying gas at a cheaper price than it had in 2009. :eek:
  • sheffield_ladsheffield_lad Forumite
    2K Posts
    Part of the Furniture Combo Breaker
    ✭✭✭
    So EDF will announce price rises on the 1st January then...

    I've been watching the grilling and so far if I understand correctly, the big six have retail division and an energy generating division. The energy generating division then sells energy to the retail division at a "fair price" and then the retail division then sells it onto the customer and passes on any increases in costs.

    So basically they're selling energy to themselves and charging whatever they feel like for it and then blaming a rise in prices which they themselves set! Ridiculous...

    But if I heard it right are BG only buying 10% of their total fuel from their parent company Centrica?

    That means they buy in 90% of the fuel off the wholesale market.
  • shadowspy24shadowspy24 Forumite
    238 Posts
    Part of the Furniture 100 Posts Combo Breaker
    ✭✭
    But if I heard it right are BG only buying 10% of their total fuel from their parent company Centrica?

    That means they buy in 90% of the fuel off the wholesale market.

    Well if that's the case then if Stephen Fitzpatrick is to be believed, then we should still be be paying 2009 prices, as apparently the highest prices were in 2009.

    Also watch the second video on this news article where he gives this explanation:

    http://www.bbc.co.uk/news/business-24730122

    The guys behind him don't seem to pleased to hear him say this..
  • But if I heard it right are BG only buying 10% of their total fuel from their parent company Centrica?

    That means they buy in 90% of the fuel off the wholesale market.


    You are backing yourself into a bit of a corner here and I'm quite surprised you didn't see it coming. Don't believe everything your employer tells you would be my advice. ;)
  • zennith wrote: »
    Stephen Fitzpatrick, managing director of smaller firm Ovo Energy, told MPs he "can't explain" the price rises being imposed, because his company was buying gas at a cheaper price than it had in 2009. :eek:


    Astonishing.

    His own company have risen prices to the same degree and at the same time as the big 6. Perhaps he can explain that?
  • davidgmmafandavidgmmafan Forumite
    1.5K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
    ✭✭✭
    "So basically they're selling energy to themselves and charging whatever they feel like for it and then blaming a rise in prices which they themselves set! Ridiculous..."

    Yawn. This has been covered many times on here. People just need to think about it a little bit. Centrica is massive. Lets say they were selling to themselves in the cosy way currently being suggested.

    If they were able to do whatever they wanted they could probably put all of the other suppliers out of business. Would this be good for the consumer? I doubt it.

    All it means if you are involved in both generation and supply is there is a better balance to the business as if one does badly then they other may pick up the slack and vice versa.

    OVO's argument isn't as powerful as people seem to be making out. Other suppliers often speak of hedging strategies, their comments are just backing this up.

    Any new entrant would be mainly focused on current wholesale prices as by definition they haven't had much chance to thin about a hedging strategy.
    Mixed Martial Arts is the greatest sport known to mankind and anyone who says it is 'a bar room brawl' has never trained in it and has no idea what they are talking about.
  • davidgmmafandavidgmmafan Forumite
    1.5K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
    ✭✭✭
    So EDF will announce price rises on the 1st January then...

    .

    Technically they can announce it before then and still have it start then as they have to give 30 days notice.
    Mixed Martial Arts is the greatest sport known to mankind and anyone who says it is 'a bar room brawl' has never trained in it and has no idea what they are talking about.
  • sheffield_ladsheffield_lad Forumite
    2K Posts
    Part of the Furniture Combo Breaker
    ✭✭✭
    You are backing yourself into a bit of a corner here and I'm quite surprised you didn't see it coming. Don't believe everything your employer tells you would be my advice. ;)

    Err no I don't work for them but I must declare an interest. I have my mates share save allowance. ;)
This discussion has been closed.
Latest MSE News and Guides

Top savings accounts

Up to 1.7% fixed or 0.6% easy access

MSE Guides

24 craft beers for £26 delivered

Flavourly newbies only (norm £70ish)

MSE Deals