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  • FIRST POST
    • MSE Guy
    • By MSE Guy 6th Aug 09, 3:39 PM
    • 1,628Posts
    • 1,255Thanks
    MSE Guy
    MSE news: Energy firms told to slash prices by regulator
    • #1
    • 6th Aug 09, 3:39 PM
    MSE news: Energy firms told to slash prices by regulator 6th Aug 09 at 3:39 PM
    This is the discussion thread for the following MSE news story:

    "Energy regulator Ofgem has finally got tough with suppliers by demanding they cut household bills to reflect the falling price they pay for power.

    Campaigners have been calling for price cuts for months because the wholesale prices the major firms pay for gas and electricity have slumped by around ..."

    Last edited by MSE Guy; 06-08-2009 at 3:57 PM.
Page 1
    • Alias_Omega
    • By Alias_Omega 6th Aug 09, 3:42 PM
    • 7,259 Posts
    • 3,954 Thanks
    Alias_Omega
    • #2
    • 6th Aug 09, 3:42 PM
    • #2
    • 6th Aug 09, 3:42 PM
    Good news,

    Though how long do they have to cut the prices.

    • Alias_Omega
    • By Alias_Omega 6th Aug 09, 3:43 PM
    • 7,259 Posts
    • 3,954 Thanks
    Alias_Omega
    • #3
    • 6th Aug 09, 3:43 PM
    • #3
    • 6th Aug 09, 3:43 PM
    This is the discussion thread for the following MSE news story:

    "Energy regulator Ofgem has finally got tough with suppliers by demanding they cut household bills to reflect the falling price they pay for power.

    Campaigners have been calling for price cuts for months because the wholesale prices the major firms pay for gas and electricity have slumped by around ..."




    Originally posted by MSE Guy
    Did you know that your bottom link goes to some article about insurance prices.
    • 1carminestocky
    • By 1carminestocky 6th Aug 09, 3:44 PM
    • 6,450 Posts
    • 2,477 Thanks
    1carminestocky
    • #4
    • 6th Aug 09, 3:44 PM
    • #4
    • 6th Aug 09, 3:44 PM
    Recent pic of Ofgem Head Honcho getting tough:

    Last edited by 1carminestocky; 06-08-2009 at 3:46 PM.
    Call me Carmine....

    HAVE YOU SEEN QUENTIN'S CASHBACK CARD??
  • fullstop
    • #5
    • 6th Aug 09, 4:27 PM
    • #5
    • 6th Aug 09, 4:27 PM
    Nothing will happen, first off all there will be a "consultation" which will last about a year, then energy firms will appeal, leading to another delay and by the time that has finished energy wholesale prices will have risen so we will be back to square one.
    "When the Government borrows, the citizen has to save".

    Machiavellii
  • kuczer2
    • #6
    • 7th Aug 09, 9:16 AM
    • #6
    • 7th Aug 09, 9:16 AM
    Nothing will happen, first off all there will be a "consultation" which will last about a year, then energy firms will appeal, leading to another delay and by the time that has finished energy wholesale prices will have risen so we will be back to square one.
    Originally posted by fullstop
    Agree with this - consumer just gets shafted once again while Energy companies make HUGE profits and still moan about their lot in life.

    I personally think it is time for a cap to be put on the profits these companies can make above their actual costs - kind of like a variable rate mortgage rising and falling with the interest rate. This is an ESSENTIAL spend for everyone goodness sake! We are not talking about a luxury item here!
  • littletommytucker
    • #7
    • 7th Aug 09, 9:49 AM
    • #7
    • 7th Aug 09, 9:49 AM
    If you get your calculator out... Those HUGE profits you talk about only equate to a 2% profit margin. What do you suggest they set the cap at? 1% ? 0.5%? Would you even notice that kind of reduction in your bill?
    Sunny in Southampton.
    • 1carminestocky
    • By 1carminestocky 7th Aug 09, 11:58 AM
    • 6,450 Posts
    • 2,477 Thanks
    1carminestocky
    • #8
    • 7th Aug 09, 11:58 AM
    • #8
    • 7th Aug 09, 11:58 AM
    If you get your calculator out... Those HUGE profits you talk about only equate to a 2% profit margin. What do you suggest they set the cap at? 1% ? 0.5%? Would you even notice that kind of reduction in your bill?
    Originally posted by littletommytucker

    Conglomerate accounting? Your employer, Centrica, for instance, splits the gas exploration and gas retail businesses into 2 separate entities. Why? When one does badly the other does great. And vice versa. And profits are calculated after costs incurred running the business. Did you really need to pay HALF A BILLION POUNDS for a computer system that was reportedly so unfit for purpose that your company instigated court proceedings against the suppliers?
    Call me Carmine....

    HAVE YOU SEEN QUENTIN'S CASHBACK CARD??
  • galba
    • #9
    • 7th Aug 09, 4:12 PM
    • #9
    • 7th Aug 09, 4:12 PM
    It would be silly of the govt. to rock the boat at this stage. This time next year there will be lots of ex-ministers and senior MPs looking for comfy seats on the boards of all these utility companies .
  • mech
    If you get your calculator out... Those HUGE profits you talk about only equate to a 2% profit margin. What do you suggest they set the cap at? 1% ? 0.5%? Would you even notice that kind of reduction in your bill?
    Originally posted by littletommytucker
    That's odd because Centrica's results for the first half of 2009 show a 6.8% margin for British Gas Residential.

    And Centrica's gas production arm made a bigger profit than that in addition.

    • icefall
    • By icefall 8th Aug 09, 10:44 PM
    • 1,105 Posts
    • 721 Thanks
    icefall
    Its about time too.

    Hopefully someone in there ivory tower has noticed that the ordinary utility payer is suffering for the benefits of the execs who need their squillions each year to live on of course...
    I always wanted to be a procrastinator, never got round to it...
  • dkwhitaker
    High Electricity Prices upto 4 times the whlosale price
    Why are electricity prices so high when the market price has fallen by over 50%.

    Anyone can see the half hourly wholesale prices at the brmeports.com website. This site covers the day to day market prices and contains historical data for years back.

    The prices are in .MWh and are directly translared to pence/KWhr by dividing by 10.

    eg 25 MW/hr is 2.5p/KW/hr

    Placing this in the public domain would have a immediate impact.

    • 1carminestocky
    • By 1carminestocky 12th Aug 09, 7:54 AM
    • 6,450 Posts
    • 2,477 Thanks
    1carminestocky
    Ah, but the enery suppliers will tell you that they are basing their current retail prices on the stuff they purchased in advance several months ago. They seemingly have a knack of buying all their wholesale supplies when the price is high. Curious, isn't it? :rolleyes:
    Call me Carmine....

    HAVE YOU SEEN QUENTIN'S CASHBACK CARD??
  • Windmill_Farmer
    Ah, but the enery suppliers will tell you that they are basing their current retail prices on the stuff they purchased in advance several months ago. They seemingly have a knack of buying all their wholesale supplies when the price is high. Curious, isn't it? :rolleyes:
    Originally posted by 1carminestocky

    Well this time last year they were saying they bought all the winter gas in the summer when prices were highest, so the same should happen again
    and we should get the very low prices.

    The gas companies are getting away with murder on prices.

    Basically OFGEM says cut your pprices and the companies say no and then OFGEM does nothing, it's disgusting.

    Something must be done about it.
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