British Gas - just a small increase in gas/electricity price!
08 July 2011, 10:08 AM
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British Gas - just a small increase in gas/electricity price!
Nice to see the utility companies doing their bit to help out their customers at a time when disposable income is plummeting.... with British Gas announcing an 18% rise in the price of gas and a 16% rise in the price of electricity in August... just in time for winter!
Will keep inflation nudging 5% too. Good news all round
Will keep inflation nudging 5% too. Good news all round
08 July 2011, 10:50 AM
#5
You will probably find consumer rates have inscreased as earlier in the year these companies were offering fixed contracts to business users at very competetive rates (BG and nPower were the cheapest for both gas and electric in our area).
Obviously becuase they are fixed rate contracts based on a forcasted usage, they already know how much money they are going to get off businesses. The problem is, the tarrifs within the contract is based on buying/selling rates and current forecasts at the time. And once agreed, they can't change it.
So if they get it wrong they need to cover the anticipated short fall...who pays for that? The home energy user.
Simples. Business customers come first. Home consumers take up any left over slack.
Obviously becuase they are fixed rate contracts based on a forcasted usage, they already know how much money they are going to get off businesses. The problem is, the tarrifs within the contract is based on buying/selling rates and current forecasts at the time. And once agreed, they can't change it.
So if they get it wrong they need to cover the anticipated short fall...who pays for that? The home energy user.
Simples. Business customers come first. Home consumers take up any left over slack.
Last edited by ALi-B; 08 July 2011 at 10:52 AM.
08 July 2011, 10:50 AM
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The Government really need to do something about this.
Wholesale prices go up say 20%, they put prices up 20%.
Wholesale prices drop by 20%, they reduce prices by 2%
6 months later, wholesale prices go up 10%
They then increase prices by 10%.
Wholesale prices go up say 20%, they put prices up 20%.
Wholesale prices drop by 20%, they reduce prices by 2%
6 months later, wholesale prices go up 10%
They then increase prices by 10%.
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08 July 2011, 10:54 AM
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Steve
08 July 2011, 11:09 AM
#9
The problem with that is with business users on a flat rate fixed contract that can last anything up to five years. If prices keep on an upward trend they have to to keep covering the shortfall by keeping the prices for variable rate consumers higher...even if the wholesale prices drops a little; the suppliers need to make up from what they lost of the business contracts they sold short on.
If everyone including businesses were on variable rate. Prices would fall.
But thats more work to budget; Businesses like to know how much money they have to pay in advance; and suppliers inturn also like to know how much they are going to get in the kitty in advance.
Last edited by ALi-B; 08 July 2011 at 11:13 AM.
08 July 2011, 11:18 AM
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They shouldn't ever have been privatised!! I said all those years ago when Thatcher decided it was another of her great ideas that despite all the regulatory bodies put in place and promises that profit would never come before the customer they would eventually be able to charge what they liked and here we are!!!
08 July 2011, 11:26 AM
#11
I don't know; We're currently sitting on 50yr old infrastructure round here. Someone has to pay to replace it.
The cynicist in me makes me think this partly why energy companies are having such a field day advertsing energy saving. Its not about the environment, its because they have 60year old substations and underground cabling nearing their end of life that they want to eek out some extra life by reducing the load placed upon them.
Agree it was privatised too soon though. But in the long run was inevitable.
The cynicist in me makes me think this partly why energy companies are having such a field day advertsing energy saving. Its not about the environment, its because they have 60year old substations and underground cabling nearing their end of life that they want to eek out some extra life by reducing the load placed upon them.
Agree it was privatised too soon though. But in the long run was inevitable.
Last edited by ALi-B; 08 July 2011 at 11:27 AM.
08 July 2011, 11:36 AM
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They shouldn't ever have been privatised!! I said all those years ago when Thatcher decided it was another of her great ideas that despite all the regulatory bodies put in place and promises that profit would never come before the customer they would eventually be able to charge what they liked and here we are!!!
I disagree. There has been massive investment over the past 20 years in all of the utilities.
Before privsatisation these companies were massively innefficient and we had filthy rivers and beaches as well.
We pay just under £100/ month for gas and electric as our house (4 bed det) is quite energy efficient , so for under £20/week we get all our gas and electric that keeps us warm , keeps us clean and cooks all of our food so not too bad. Most people spend more than that a week in the pub inc me.
Chip
08 July 2011, 11:47 AM
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I don't know; We're currently sitting on 50yr old infrastructure round here. Someone has to pay to replace it.
The cynicist in me makes me think this partly why energy companies are having such a field day advertsing energy saving. Its not about the environment, its because they have 60year old substations and underground cabling nearing their end of life that they want to eek out some extra life by reducing the load placed upon them.
The cynicist in me makes me think this partly why energy companies are having such a field day advertsing energy saving. Its not about the environment, its because they have 60year old substations and underground cabling nearing their end of life that they want to eek out some extra life by reducing the load placed upon them.
Sorry, but these are an essential commodity and their supply should not be in the hands of companies whose first responsibility is to their shareholders and not the consumers.
They may have been inefficient etc. but privatisation wasn't the only answer to that. and anyway the only reason they got privatised was to create the illusion of an economic boom by asset stripping the country and buying votes off the popualtion.
08 July 2011, 11:56 AM
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08 July 2011, 12:00 PM
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No doubt people will up moaning when they announce their profits as well.But without thatthere would be very little investment.Their profit margin is 8.63% which is not that great anyway.
Chip
Chip
08 July 2011, 06:43 PM
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It's called fuel poverty. Used to be something typified in 3rd world countries.
Petrol, gas...all going up in price.
We're getting poorer - except Bankers.
Another 'benefit' of mass 3rd world immigration too....more demand for fuel so price goes up...we need more gas from Russia.
Same applies to food also.
Petrol, gas...all going up in price.
We're getting poorer - except Bankers.
Another 'benefit' of mass 3rd world immigration too....more demand for fuel so price goes up...we need more gas from Russia.
Same applies to food also.
08 July 2011, 06:52 PM
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I do agree that the utilities should NOT be in private hands, but saying that the fault has to be laid at the feet of governments for years, and I mean the EU as well, for not building the power stations needed. Basically we need nuclear NOW! Though we also have loads of coal so that's another option.
Dave
08 July 2011, 07:42 PM
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08 July 2011, 08:27 PM
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Just fixed my gas and elctric rate until 31/03/2014. Switched from Southern Electric to Eon
They forecast it will cost me £12 per year more at current prices so should save a few quid once the inevitable rises come across the board.
Get it fixed now before they sting you.
Most people are just lazy and stick with the same supplier. Uswith.com.
They forecast it will cost me £12 per year more at current prices so should save a few quid once the inevitable rises come across the board.
Get it fixed now before they sting you.
Most people are just lazy and stick with the same supplier. Uswith.com.
08 July 2011, 08:33 PM
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Interesting the manner in which the 'international markets' are being blamed for the rise in prices. Much easier than admitting that easy money and QE is reducing real income in this country. Much more of this to come while that pillock Mervin and his 'new economics' chums are running the show. Oh and while anyone with a shred of common sense bails out retarded f*ckwits that belong on Jeremy Kyle.
08 July 2011, 08:37 PM
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Interesting the manner in which the 'international markets' are being blamed for the rise in prices. Much easier than admitting that easy money and QE is reducing real income in this country. Much more of this to come while that pillock Mervin and his 'new economics' chums are running the show. Oh and while anyone with a shred of common sense bails out retarded f*ckwits that belong on Jeremy Kyle.
08 July 2011, 09:06 PM
#29
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