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[aaron]

So are we be taken for a ride with these latest piffling decreases to only one side of the typical energy bill?

Essentially yes, the energy companies are very savvy when it comes to spreading misinformation and stating it as fact.

There are other factors that are involved such as the Electricity Market Reform coming in in April and the fact only 15% of consumer cost is made up of the commodity that is fuel, the rest is made up of transport and supplier uplift etc (notice that supplier uplift is never disclosed btw).

But inevitably the price of both gas and electric is just going to go up and up over the coming years. These slight dips are just to try and disguise the general trend in reality.

 

[arknor]

eon sent me a cheque for £4.07
something about discounts

 

[itchy]

Nothing goes up, just the value of your money goes down!

 

[Efour]

If pigs could fly would the price of bacon go up ?

 

[Kronos]

I swapped providers last year from British Gas which has to be right up there as a company with a poor customer service department. Even though I was on a fixed term they still tried to increase my monthly direct debit. I eventually contacted The company's CEO and fair play received an apology and compensation.
I moved to Dalgas and all I get each month is a receipt for the direct debit payment.

The big 6 are too big and have been allowed by successive governments to use confusing pricing, a multitude of unfathomable tariffs, complicated cost data to rip us off. Fuel povety is a real isdue in the UK and a disgrace.

Far too much money is spent by these companies lobbying parliament in a successful effort to keep things the way they are. Our politicians wag their fingers, speak tosh, and allow the greed to continue.

 

[MrMoonX]

It's a monopoly and they have been ripping us off for years, government won't legislate as they are in the pockets of big business anyway

 

[SDK^]

Shock as reality hits you that businesses exist to make profit for it's Shareholders.

Also, the profit margins aren't that high, around 4-5% - the red line on the graph below.

Source : Ofgem
https://www.ofgem.gov.uk/publications-and-updates/charts-outlook-costs-make-energy-bills

 

[The_Abyss]

That does't show the whole supply chain though, normally owned by the same group, so it is a little misleading.

 

[FuriousGeorge]

That does't show the whole supply chain though, normally owned by the same group, so it is a little misleading.

Vertical Integration of distribution and supply - the energy companies best friend (who hides true production costs for them).

 

[alx]

That does't show the whole supply chain though, normally owned by the same group, so it is a little misleading.

Don't quite understand what you mean, how would viewing the whole supply chain change what is shown above?

 

[Cosimo]

If pigs could fly would the price of bacon go up ?

You could guarantee that the price of gas and electricity would go up.

 

[The_Abyss]

Don't quite understand what you mean, how would viewing the whole supply chain change what is shown above?

Viewing the whole supply chain would give the opportunity to see the other points where profit is made. When you look at 'where your energy bill money goes' graphics, 'profit' excludes profits making, buying, selling, and hedging it.

 

[Danthus]

How have OVO managed to cut their price by 10% when other have only managed a 1% cut?

 

[alx]

Viewing the whole supply chain would give the opportunity to see the other points where profit is made. When you look at 'where your energy bill money goes' graphics, 'profit' excludes profits making, buying, selling, and hedging it.

True, but the upstream, midstream and downstream parts are effectively like different entities even if they're part of the same company (almost treated like smaller companies within a larger one).

Upstream has to sell at wholesale market gas prices to mid/downstream, midstream can trade/hedge to try and make money but downstream has to be a solid business on it's own. Each part has to make money and be profitable in it's own right.

 

[wilber]

In b 4 Renewable's (particularly onshore wind turbines) are to blame


and go...

 

[The_Abyss]

True, but the upstream, midstream and downstream parts are effectively like different entities even if they're part of the same company (almost treated like smaller companies within a larger one).

Upstream has to sell at wholesale market gas prices to mid/downstream, midstream can trade/hedge to try and make money but downstream has to be a solid business on it's own. Each part has to make money and be profitable in it's own right.

Some of the less visible profits are rather significant in comparison with those that provide and sell to the consumer.

 

[stopper]

government won't legislate as they are in the pockets of big business anyway

Not that they can't, they won't.
The shareholders of the big companies are the ones funding political parties.

 

[Zenduri]

Ahhh another Daily Mail thread...

 

[SDK^]

There will always be a political influence on the energy market.
The Government aim is to attract enough investment to ensure the lights continue to stay on and that investment will only come with a guaranteed future return for the investors.