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  • FIRST POST
    • MSE Callum
    • By MSE Callum 10th Apr 18, 10:18 AM
    • 193Posts
    • 89Thanks
    MSE Callum
    MSE News: British Gas to increase gas and electricity prices by 5.5%
    • #1
    • 10th Apr 18, 10:18 AM
    MSE News: British Gas to increase gas and electricity prices by 5.5% 10th Apr 18 at 10:18 AM
    British Gas has announced that the price of its standard variable tariff will be increasing by an average of 5.5% from 29 May 2018...
    Read the full story:
    'British Gas to increase gas and electricity prices by 5.5%'

    Click reply below to discuss. If you havenít already, join the forum to reply.
    Read the latest MSE News
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Page 1
    • minislim
    • By minislim 10th Apr 18, 10:24 AM
    • 291 Posts
    • 163 Thanks
    minislim
    • #2
    • 10th Apr 18, 10:24 AM
    • #2
    • 10th Apr 18, 10:24 AM
    why? wholesale fuel prices went down last year? and we didn't see a reduction?
    as usual BG customers get fleeced to give hefty profits back to the shareholders.
    how anyone is still with BG i dont know!
    • Katapolt
    • By Katapolt 10th Apr 18, 10:27 AM
    • 178 Posts
    • 246 Thanks
    Katapolt
    • #3
    • 10th Apr 18, 10:27 AM
    • #3
    • 10th Apr 18, 10:27 AM
    christ. i just got a £700 bill from them (issue causing this now rectified) but bloody hell am i staying with them now this is happening!
    FTB 2017
    Currently dealing with a Quarter Life Crisis
    • miller
    • By miller 10th Apr 18, 10:49 AM
    • 1,239 Posts
    • 433 Thanks
    miller
    • #4
    • 10th Apr 18, 10:49 AM
    • #4
    • 10th Apr 18, 10:49 AM
    as usual BG customers get fleeced to give hefty profits back to the shareholders.
    Originally posted by minislim
    I've had a very small shareholding in Centrica since 2010, it has been an atrocious stock pick.

    Iain Conn (what an unfortunate surname) the CEO seems to have done alright though.
    • minislim
    • By minislim 10th Apr 18, 12:04 PM
    • 291 Posts
    • 163 Thanks
    minislim
    • #5
    • 10th Apr 18, 12:04 PM
    • #5
    • 10th Apr 18, 12:04 PM
    I've had a very small shareholding in Centrica since 2010, it has been an atrocious stock pick.

    Iain Conn (what an unfortunate surname) the CEO seems to have done alright though.
    Originally posted by miller
    really? as i recall for the last ten years they've reported bumper profits year on year?

    if that's the case and you don't seem to be seeing a decent return i'd be suspicious of who's reaping the rewards? like you say. CEO etc.
    • miller
    • By miller 10th Apr 18, 12:20 PM
    • 1,239 Posts
    • 433 Thanks
    miller
    • #6
    • 10th Apr 18, 12:20 PM
    • #6
    • 10th Apr 18, 12:20 PM
    From their website, the opening price on 31/12/2010 was £3.34, the share price just now is £1.43.

    I make the dividends going back in time since then roughly something about 98p
    (4p 8p 3p 8p 3p 8p 5p 12p 5p 12p 5p 11p 4p 10p)

    I work that out as a loss of about 28%.
    • PaschalFun
    • By PaschalFun 10th Apr 18, 12:31 PM
    • 178 Posts
    • 50 Thanks
    PaschalFun
    • #7
    • 10th Apr 18, 12:31 PM
    • #7
    • 10th Apr 18, 12:31 PM
    really? as i recall for the last ten years they've reported bumper profits year on year?

    if that's the case and you don't seem to be seeing a decent return i'd be suspicious of who's reaping the rewards? like you say. CEO etc.
    Originally posted by minislim
    I fear you memory is failing badly; it happens to us all eventually

    Here are the results from the Centrica jury...

    2013 £950m profit (based on £26.57bn t/o)
    2014 £1bn loss (based on £29.41bn t/o)
    2015 £884m loss (based on £27.97bn t/o)
    2016 £1.66bn profit (based on £27.10bn t/o)
    2017 £303m profit (based on £28.02bn t/o)
    • Lagamorph
    • By Lagamorph 10th Apr 18, 1:49 PM
    • 12 Posts
    • 3 Thanks
    Lagamorph
    • #8
    • 10th Apr 18, 1:49 PM
    • #8
    • 10th Apr 18, 1:49 PM
    So the rest of the big suppliers will follow suit soon enough.
    As soon as one of them takes the plunge the rest all stop holding back.
    • Xbigman
    • By Xbigman 10th Apr 18, 4:18 PM
    • 3,064 Posts
    • 1,314 Thanks
    Xbigman
    • #9
    • 10th Apr 18, 4:18 PM
    • #9
    • 10th Apr 18, 4:18 PM
    Centrica's business is primarily in gas and oil production which was hit badly by the oil price collapse. You are confusing Centrica with their retail energy subsidiary British Gas which is profitable but not massively so.
    Its just the first of the big energy providers to raise prices this year, there will be more to follow.



    Darren
    Xbigman's guide to a happy life.

    Eat properly
    Sleep properly
    Save some money
    • miller
    • By miller 10th Apr 18, 4:48 PM
    • 1,239 Posts
    • 433 Thanks
    miller
    So the consumers lose out through large energy bills and the shareholders lose out because the relatively small BG profits got swallowed by historical issues (i.e. the oil price) in the parent company.

    The winners are solely the CEO/Executive team then!
    • Hengus
    • By Hengus 10th Apr 18, 5:56 PM
    • 5,595 Posts
    • 3,432 Thanks
    Hengus
    Quite a telling comment from the Telegraph:

    Quote: Centrica, the supplier's FTSE 100 parent company, said its decision was driven by the same "rising wholesale and policy costs" that prompted a similar rise earlier this year for the "safeguard tariff" that covers four million of Britain's most vulnerable energy consumers, which is set by the regulator Ofgem. Unquote

    If Ofgem can raise Safeguard Tariffs by x%, then why should people be surprised when other tariffs increase by the same %.
    • thor
    • By thor 11th Apr 18, 7:14 PM
    • 5,224 Posts
    • 1,874 Thanks
    thor
    So the rest of the big suppliers will follow suit soon enough.
    As soon as one of them takes the plunge the rest all stop holding back.
    Originally posted by Lagamorph
    That's the benefits of competition apparently. If you don't like it you can go to another company which will increase it's prices.
    • Xbigman
    • By Xbigman 11th Apr 18, 11:56 PM
    • 3,064 Posts
    • 1,314 Thanks
    Xbigman
    That's the benefits of competition apparently. If you don't like it you can go to another company which will increase it's prices.
    Originally posted by thor
    Quite right. Martin usually advises you wait until after everyone has raised their prices before deciding to move supplier. Sound advice IMO.



    Darren
    Xbigman's guide to a happy life.

    Eat properly
    Sleep properly
    Save some money
    • MeterMan
    • By MeterMan 12th Apr 18, 12:47 PM
    • 298 Posts
    • 167 Thanks
    MeterMan
    If you're not on a standard variable rate tariff then its not going to effect you. If you are on an SVT then you can change your tariff with BG at no charge
    • thor
    • By thor 13th Apr 18, 1:25 AM
    • 5,224 Posts
    • 1,874 Thanks
    thor
    If you're not on a standard variable rate tariff then its not going to effect you. If you are on an SVT then you can change your tariff with BG at no charge
    Originally posted by MeterMan
    Even if you are on a fixed tariff it will affect you eventually because when you are looking for a new one they will be pricier.
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