Energy Prices (Strictly NO referrals!)

Oyeee said:
On the radio today, people were talking about how they're having to work two or three jobs to survive. Crazy
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I don’t think that is anything new. The volume of people has probably increased but the less fortunate have always had to do this to get by. It just wasn’t interesting to the media when there wasn’t a doomsday story to put around it.
 
b0rn2sk8 said:
I don’t think that is anything new. The volume of people has probably increased but the less fortunate have always had to do this to get by. It just wasn’t interesting to the media when there wasn’t a doomsday story to put around it.
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And it wasn't interesting to the majority of the population when it didn't affect them either...
 
Puzzled said:
Well they'll just have work 5-6 jobs this winter #levellingup

I'm hoping that even the 2 hopeless candidates we have for our new pm realise that further support needs to be put in place for this Winter and likely next with those predictions above.
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I think Truss will, whether it would be enough though. I doubt it.
Sunak would IMO, do nothing to help ordinary people.
 
Puzzled said:
Im hoping that even the 2 hopeless candidates we have for our new pm realise that further support needs to be put in place for this Winter and likely next with those predictions above.
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And where is the money going to come from?
The PMs are not going to pay for it.
Any government help will be paid back by the tax payers at some point.
 
Dis86 said:
Got to love how energy companies are pretty much responsible for these insane rises and yet no politician is willing to talk about them. They're just letting them get on with things.
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In the UK they are not directly responsible for the rises.

You also need to define what you mean energy company. There are those that extract/produce/supply fuel and those that distribute energy, and there is sometimes some overlap. Neither of these are really responsible for the rises, but the energy producers are massively benefiting from global price rises.
 
Stretch said:
They are not directly responsible for the rises.

You also need to define what you mean energy company. There are those that extract/produce/supply fuel and those that distribute energy, and there is sometimes some overlap. Neither of these are really responsible for the rises, but the energy producers are massively benefiting from global price rises.
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The energy producers are the ones that set the price. Nobody else. They are the ones choosing to earn more profit at this point. They could lower costs but are choosing not to.
 
Dis86 said:
The energy producers are the ones that set the price. Nobody else. They are the ones choosing to earn more profit at this point. They could lower costs but are choosing not to.
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Only collusion could bring about a sustained rapid reduction in price, and even that would only be possible if they had under-utilised capacity.

Otherwise one producer wouldn’t be able fulfil bellow market prices orders for more than a few hours. We need the market to find lower prices, and that will take time.
 
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Dis86 said:
No, it doesn't. Producers set the price to suit the market. They can choose to sell at, below or above standard market rate.
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Nope
The producers are legally bound to do the upmost for the shareholders.
Selling below market rates isn’t that
 
Mercenary Keyboard Warrior said:
It really does, but the producers have the ability to try to influence the price via supply.

If the producers set the price then the market for oil would not have been negative for a short period during COVID.
(Real world example of why producers do not set price)
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Only vary large produces are able to influence price. No one producer is big enough to gain an advantage. It was only last year that were taking about demise of OPEC due to US shale energy.
 
MadMossy said:
Ofgem are a joke, their entire purpose is to regulate the market to protect consumers, yet all they have been doing is regulate the market in the interest of protecting those energy suppliers and not caring about the consumer at all.

Who on earth is going to be able to afford these insane price hikes, are we going to end up in a situation where a large portion of the country are in energy debt, with CCJs flying around left and right as these companies desperately try to get their money back.

If something doesn't happen soon, this is going to have a profound impact on the economy, even worse than the whole covid thing.
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Thats the public impression, but Ofgem's prime mandate is to maximise the suppliers on the market as the ideology believes in better prices, service etc. if there is higher competition. Hence their focus now on trying to prevent more companies going bust. Note all the price controls are on the retail side only, not the wholesale side.

I seen a Sunak clip where he was proposing a cartel on the wholesale side where all buyers refuse to pay above a certain price, the same as my idea lol, crazy to think an actual politician is thinking of the same thing, but of course requires cooperation on a international level so unlikely.
 
Dis86 said:
Can they lower the price they're selling at and still make a profit? Yes or no?
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Would you sell your house at 30% below market value if prices had gone up a lot in the last couple of years?

I'm not saying it wouldn't be really nice if Energy companies would sell below market rate... and if there was some reasonable mechanism that wouldn't wreck the market to make them do it, that would be swell. But it's not so straightforward.
 
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