How can they justify the increase in your electricity bill !?

[Zerax]

The free market eventually drives price's up, it's OK for a while when they compete with each other, but eventually they combine and away we go with price's going up as they form a .................

But that isn't what we had with the energy suppliers... we had a myriad of smaller companies offering very good rates for many years... it's only the insane neo-socialist government intervention of 'price capping' that forced them out of the market. Now we have a handful of massive companies, who can easily control the market. Massive government mistake because they pandered rather than told the general public the facts of life.

I think for some customers, it was costing the supplier something like 3x the price they were charging... that is simply unsustainable and wrong.

 

[Diddy]

Added to that , even if It was using power , they make a big song and dance about only supplying 100% renewable ,

Renewables price was subsidised by those who used fossil fuels. Now it is the other way round. End of the day it is a case of all in it together. Where have I heard that before ?

 

[nicebutdim]

Started with the "dash for gas" and now we import far more than we produce, and Vlad has or balls in the vice. Gas is still very much the means of filling in big gaps in renewables (subsidised) and the declining base supply as older coal and nuclear plants are decommissioned without any sensibly planned replacements. Here is it in a nice little infographic:

Dash for Gas - Wikipedia

en.wikipedia.org

It's worth pointing out that, while mainland Europe obtains around 40% of its gas supply from Russia, the UK relies on Russia for approximately 3% of its gas.

Of course those countries that can no longer buy from Russia will drive up prices as the seek to secure alternative sources of supply. I'll keep my thoughts to myself about the recent trend of price increases for all forms of energy.

 

[Mike Johnson]

But that isn't what w we had a myriad of smaller companies offering very good rates for many years...

I don't know how where you get your information, but where do you thing these myriad of smaller companies go there supplies from? They did not have an independent source.

 

[nicebutdim]

I don't know how where you get your information, but where do you thing these myriad of smaller companies go there supplies from? They did not have an independent source.

They bought on the wholesale market, added a margin, and sold to consumers.

Like any commercial enterprise they saw an opportunity to make a profit and perhaps were happy to make lower margins than some other companies. What they were unlikely to have factored into their forecasts was the unexpected development of price capping. I'm not sure why you think price capping is a great idea as it doesn't benefit those who are frugal with their energy use and certainly doesn't encourage energy efficiency. Imagine you're the sort of person who is minded to run gas heating full pelt, 24 hours a day, while leaving windows open on the coldest nights in winter as the house is unbearably hot - a family across the road do exactly that and I guess they see no reason not to, if their gas supplier are unable to charge more than a certain amount.

Edit: In case it isn't apparant, I'll make the point that you pay to heat homes just like the one across the road from me.

 

[Mike Johnson]

Wow hold on there, lots of assumptions with no substance I know its late but have you really had that much to drink.

So lets hear how you would reduce the costs to the consumer?

 

[brianmoooore]

@nicebutdim I think you're misinterpreting how the price cap works. It's not an absolute limit on your bill - It's the maximum that a defined 'average' user will pay. Use more than that average and you'll pay more.
If it was an absolute cap, I'd be more than happy with it, even at the rate it's likely to be in a few months time.

 

[nicebutdim]

@nicebutdim I think you're misinterpreting how the price cap works. It's not an absolute limit on your bill - It's the maximum that a defined 'average' user will pay. Use more than that average and you'll pay more.
If it was an absolute cap, I'd be more than happy with it, even at the rate it's likely to be in a few months time.

It seems my knowledge is lacking and I'd laboured under the misapprehension that it was an absolute limit.

I see that it applies only to standing charges and unit prices on default tariffs. When prices rise, energy companies must absorb those increases - sounds like a great way to bankrupt energy companies and reduce options for consumers,

 

[Mike Johnson]

It seems my knowledge is lacking and I'd laboured under the misapprehension that it was an absolute limit.

I see that it applies only to standing charges and unit prices on default tariffs. When prices rise, energy companies must absorb those increases - sounds like a great way to bankrupt energy companies and reduce options for consumers,

Then what is your solution to the increasing cost of energy consumption without increasing inflation?

 

[brianmoooore]

It was conceived as a way to keep a lid on the profits of the 'legacy' suppliers, who relied on the loyalty and ignorance of existing customers to be able to rip them off.

 

[Mike Johnson]

I think we all know what it is supposed to do, as I already said back in post 10, what it will achieve is just a top up to the Government coffers, it will make no difference to the consumer, the windfall is the Government's.

 

[Zerax]

I don't know how where you get your information, but where do you thing these myriad of smaller companies go there supplies from? They did not have an independent source.

The difference between small companies (that have nearly all gone now thanks the crazy price capping) and the big boys is "contribution towards overheads and profit" That's the accounting term for what's left over after all the direct costs. So... a well organised and efficient company should be able to minimise the overheads. That's where the difference comes from. Overheads such as billing, customer services and bad debt can be huge !! So have online billing only, one-hit CS and happy customers and you've saved a packet !!

 

[Zerax]

I'm always amazed at the number of homes that I go into that are heated to what I would call 'tropical' temperatures... and this is in spite of the recent energy price increases !

 

[brianmoooore]

I'm always amazed at the number of homes that I go into that are heated to what I would call 'tropical' temperatures... and this is in spite of the recent energy price increases !

My youngest daughter was home for a month just after Christmas, staying in one of my holiday cottages while she was 'between flats' in Exeter, where she lives.
Found every thermostat in the place turned up to max when she left. No wonder she always complained about the cold when she came into our house.

 

[Vortigern]

Bit of context here; My bill has gone from 131 p.m. to 266 p.m. for the last two months. In the same letter I am told that as of April costs are likely to rise a further 75% (ish?) Meaning I will be paying not far from 500 p.m. i.e. 6k per year. Over the last few years that means my usual bill of 3k per year is doubling, at least (Gulp!!) With four kids in the house the future is looking a bit bleak. FYI as I am retired I get 80 p.w. pension although I have worked all my life, don't ask! I know people who have never worked and/or been in prison half their life who get the full whack. Food costs are increasing, penury here I come!