MSE News: Explain your prices, Ofgem tells big six energy giants
Former_MSE_Paloma
Former MSE 531 Posts
in Energy
Ofgem said suppliers' failure to engage with consumers on wholesale prices rises is undermining public confidence ...
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Explain your prices, Ofgem tells big six energy giants
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Explain your prices, Ofgem tells big six energy giants
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Wholesale prices increase => "We have to increase prices as wholesale costs have gone up and we can't absorb the price rises any more" => Prices go up by 10-20% 2 weeks later.
Wholesale prices decrease => Nothing happens => 6 months later "Wholesale prices are only a small part of the cost of supplying gas/electricity and other factor have to be taken into account. Also we bought 6 years worth of gas/electricity at the high price to stabilise prices so we'll pass on the cuts once that has been used up" => Prices go down by 1% Six months later and only one utility.
What are you blithering on about? Prices go down by 1%? Huh?
They're own report actually broadly explains why bills haven't come down.
https://www.ofgem.gov.uk/gas/retail-market/monitoring-data-and-statistics/understanding-energy-prices-great-britain/supply-market-indicator
Essentially the huge figures reported in the media are next to meaningless. It refers to the spot price for next day delivery, whilst demand is low (it's summer!) And storage is already pretty much full. Hence no one can take advantage of such prices.
as whenever i do a price comparison of all the energy companies none of them ever are at the top of the lists.
the regulator and government needs to something about them. and soon.
The last time they opened their traps they forced bills to go up, by meddling with the number of tariff's on offer and forcing suppliers to charge daily standing charges.
Waste of space. The energy companies can do as they please, make their share holders and directors very happy and know that no one will stop them.
Guest comment: 'You've got the right to buy energy at a fair price', Ofgem says
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Give us a figure that's based on trends on forward pricing taken into account various hedging strategies (to give a realistic range of wholesale pricing) with the best forecast of costs they have to get a true sense of if the companies are increasing their margins significantly. Also remember to include margins of error, otherwise the whole thing is meaningless.
Surely it's simply stuff?!