MSE News: British Gas owner posts £1.3bn profit, so why the price hikes?

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  • polka_purpura
    polka_purpura Posts: 173 Forumite
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    MillicentBystander wrote: »
    Hmmmmm...not really sure this is a valid argument. What do we have now that we wouldn't have if it was still nationalised?

    1. 5 hugely expensive IT systems (BGs alone reportedly cost £500,000,000 and worked so poorly they sued the contractors!)
    2. 5 Customer service centres.
    3. 6 Sales Depts.
    4. 6 lots of [STRIKE]paid liars[/STRIKE] door knockers.
    5. 5 incredibly well paid CEOs.
    6. Millions of shareholders taking dividends, including foreign shareholders who presumably spend their dividend income/profits from selling shares in their own country.
    7. Actual foreign ownership - profits going overseas.
    8. Countless commission based switching sites (this expenditure is clearly recouped from the customer in the end).
    9. OFGEM?? :p

    I'm sure there's more. And as a fairly recent EDF customer I have to laugh about the alleged efficiency argument.

    What increases in bills to cover the cost of renationalisation do you think would be bearable?
    PAD to date: £1166-22

    Pay off as much as you can #127: £4,600 (£2,300 debt / £2,300 saved)in 2011.£660 / £4,600.(debt paid 28.7%; target 14.3%).

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  • posh*spice
    posh*spice Posts: 1,398 Forumite
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    We've drained the North Sea of Gas - peak UK Gas was way back in the year 2000.....


    ....no point in blaming BG or Centrica. You need to look at the facts and get real...


    the era of cheap energy is OVER....
    Turn your face to the sun and the shadows fall behind you.
  • MillicentBystander
    MillicentBystander Posts: 3,518 Forumite
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    polka_purpura wrote: »
    What increases in bills to cover the cost of renationalisation do you think would be bearable?


    Completely different argument and i suspect you know it. My post was in response to one claiming that the current situation leads to better efficiency than a nationalised industry; I was just pointing out what we wouldn't need compared to the current situation.
  • antrobus
    antrobus Posts: 17,386 Forumite
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    MSE_Helen wrote: »
    British Gas owner posts £1.3bn profit, so why the price hikes?

    Because British Gas's profits have halved??

    http://news.sky.com/home/business/article/16038988

    Or because whilst the 'British Gas owner' might have posted profits of £1.3bn, this is less than the £1.6bn it made last year?

    But I want an answer to the question - why can't MSE employ some decent journalists?
  • posh*spice
    posh*spice Posts: 1,398 Forumite
    edited 29 July 2011 at 8:22AM
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    Thought this might help posters to understand where the UK is :-

    chart.jpg
    Turn your face to the sun and the shadows fall behind you.
  • COVKID
    COVKID Posts: 277 Forumite
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    I would like to know how much the energy companies (us) are paying in extra carbon taxes to the government.Surely this must have some effect on profits.Can anyone enlighten me on the figures?
  • bengasman
    bengasman Posts: 601 Forumite
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    The price hike is for obvious reasons.

    1 To make more money.
    2 To be able to charge you more money.
    3 Because they will get more money.

    Energy suppliers charge whatever rate it is that they think will earn them most profit.
    Some poor souls seem to think they only charge what is needed to cover their cost, plus a modest mark up.
  • ihateyes
    ihateyes Posts: 1,326 Forumite
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    bengasman wrote: »
    The price hike is for obvious reasons.

    1 To make more money.
    2 To be able to charge you more money.
    3 Because they will get more money.

    Energy suppliers charge whatever rate it is that they think will earn them most profit.
    Some poor souls seem to think they only charge what is needed to cover their cost, plus a modest mark up.

    just remember bengas man, the UK is one of the cheaper countries fo energy costs......

    http://www.sust-it.net/europe_energy_costs.php

    and for gas e are one of the cheapest..... so is it the UK prices are too cheap, or UK energy industry trying to come in line with the rest of the world

    http://www.energy.eu/
    Promo codes are never always cheaper..... isnt that right EuropCar?
  • bengasman
    bengasman Posts: 601 Forumite
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    ihateyes wrote: »
    just remember bengas man, the UK is one of the cheaper countries fo energy costs......
    Without going into the how and what of energy costs abroad, it does not matter whether our prices are higher or lower compared to other countries; the fact remains that all energy suppliers operating in the UK are only after one thing: maximum profit.
  • eurmalian
    eurmalian Posts: 288 Forumite
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    bengasman wrote: »
    the fact remains that all energy suppliers operating in the UK are only after one thing: maximum profit.

    Ah yes. And all those big comanies in other industries only do it out of the goodness of their hearts and to see little children smile.

    I understand your issue with energy providers completely now.
    I am an employee of British Gas, however the views expressed on this post are mine and do not necessarily reflect the views of Centrica, its subsidiaries or affiliated companies.
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