OMG - British Gas increases of 10.4% and 8.4% - WHAT PLANET ARE THEY ON !!!!!

[Guinness Boy]

Because 85% of a bill is set by regulatory, tax, and supply costs, which are pretty much the same for all big six suppliers (The smaller companies get tax benefits such as not having to pay the green tax)

10% is running costs, and 5% is profit.

The only way to avoid having to all change prices at the same time would be to significantly lower profits, or cut running costs (e.g. redundancies, which will affect service levels and innovation)

When the core product is being sourced by everyone from the same place at the same cost, of course prices are going to be similar across the board.

So this year's rise is nothing to do with the Labour announcement then. Further more the amount of increase has not jumped because of the announcement. Either BG don't think Labour will get in or they are saving the price hike to offset it for 2014 - which will prove the above to be nonsense.

 

[Westdene Seagull]

In normal circumstances I fully support a free and open marketplace, and dislike regulation. But this is NOT a free and open marketplace. The energy companies are acting as a cartel, and have the bare faced cheek to repeatedly keep threatening us with power cuts in the near future, maybe to keep us brow beaten consumers in line. What makes this worse is the energy regulator seemingly being too scared or too weak to take these pariahs to task.

I think this is an issue which would create millions of votes for any party who really grasped the nettle.

To add insult to injury watch last nights Watchdog to see a director of EON effectively saying "tough luck" and "not our fault" !!!! The fact that 4 of the big 6 have refused to put up anyone for interview by Watchdog shows the contempt these companies have for their customers.

 

[glasfryn]

Just announced. All the big six deny being in a cartel yet they all put their prices up by similar amounts, at similar times and always just before winter !!!!!

There really is not word in the English language to describe them.

what planet are they on?



planet tory

 

[BLOCK F]

Makes me laugh and cry.
All you Tory haters believing life would be perfect under Labour.
Dream on you idiots.

 

[beorhthelm]

Just announced. All the big six deny being in a cartel yet they all put their prices up by similar amounts, at similar times and always just before winter !!!!!

its been gone over in the SSE rise thread. price of energy, cost of transport, cost of regulation, cost of service and running the business are all much the same, so of course they will put prices up about the same amount. not defending it, just saying its the nature of the market.

... and have the bare faced cheek to repeatedly keep threatening us with power cuts in the near future ... What makes this worse is the energy regulator seemingly being too scared or too weak to take these pariahs to task.

there's no threat, its a third party (National Grid) warning us about the future capacity problems. its a simple matter of fact that power stations are going off line due to end of their life span or to comply with EU directives, with nothing to replace them. what really makes this worse is that its largly due to the regulations, the energy companies are doing as they are told shutting down coal and gas and building expensive subsidised wind farms.

again, just observing the facts... sooner we understand the problem the sooner we might see a improvement. our ire should be at those who devised this energy policy.

 

[Seagull kimchi]

Don't worry guys

Georgie O has a plan. He's letting China own stakes in our Nuclear power production - that's bound to help everyone who is struggling to pay bills over the winter. So surely some of the 'how many millions' obtained from this 'deal' will be passed on to the consuming public?? No doubt the cost of heating your home will reduce now - well shouldn't it? Or why else would the govt make these deals if not to make life easier for it's citizens? Let's see where this story gets buried.

http://www.bbc.co.uk/news/business-24561325

 

[Gullflyinghigh]

its been gone over in the SSE rise thread. price of energy, cost of transport, cost of regulation, cost of service and running the business are all much the same, so of course they will put prices up about the same amount. not defending it, just saying its the nature of the market.



there's no threat, its a third party (National Grid) warning us about the future capacity problems. its a simple matter of fact that power stations are going off line due to end of their life span or to comply with EU directives, with nothing to replace them. what really makes this worse is that its largly due to the regulations, the energy companies are doing as they are told shutting down coal and gas and building expensive subsidised wind farms.

again, just observing the facts... sooner we understand the problem the sooner we might see a improvement. our ire should be at those who devised this energy policy.

Stop talking sense, this isn't the thread for it, misdirected anger is the way forward.

 

[seagullsovergrimsby]

our ire should be at those who devised this energy policy.

And those currently in power dishing out the blame but doing nothing about the situation because it will upset their chums in the City.

 

[brightn'ove]

Nothing will shock me with gas companies anymore. Not since they sent me a £200 bill two weeks after moving in to a new house and claiming that it was an 'estimate'. Money grabbing scumbags.

 

[BLOCK F]

Comments like that are equally as naive - they're two cheeks of the same backside.

At least labour pretend that they would consider the renationalisation of our services and utilities.

Mustafa,it is not naive at all.I certainly don't believe that life would be perfect under Labour and heaven forbid they get back in power any time soon.
Nor do I believe it would be much fun run the way you would like to see the country governed.
Naive......who me or you?

 

[ElectricNaz]

Nothing will shock me with gas companies anymore. Not since they sent me a £200 bill two weeks after moving in to a new house and claiming that it was an 'estimate'. Money grabbing scumbags.

No offense intended, but if you'd let them know your details and meter reads when you moved in, you wouldn't have had such a large bill. I'm assuming it was addressed to The Occupier, or to the previous tenants?

Estimated bills aren't money grabbing, they're based on prior household usage and weather trends. The reason they get sent is largely to encourage people to call in and provide their contact details, so we can properly bill the account to accurate reads.

If estimated bills weren't sent, people would just forget about their bills altogether (or purposely ignore having to call up / go online and sign up) and then end up with a massive bill to pay every year or so.

Views are my own.

 

[BLOCK F]

Nothing will shock me with gas companies anymore. Not since they sent me a £200 bill two weeks after moving in to a new house and claiming that it was an 'estimate'. Money grabbing scumbags.

If you really feel the need to get outraged,a word of advice,make it something worthwhile.

 

[ElectricNaz]

its a third party (National Grid) warning us about the future capacity problems. its a simple matter of fact that power stations are going off line due to end of their life span or to comply with EU directives, with nothing to replace them. what really makes this worse is that its largly due to the regulations, the energy companies are doing as they are told shutting down coal and gas and building expensive subsidised wind farms.

again, just observing the facts... sooner we understand the problem the sooner we might see a improvement. our ire should be at those who devised this energy policy.

Exactly.

Being told to close down exisiting plants, then when we apply to build new ones, for example new Nuclear plants at Hinkley point, the Government dilly dally over making decisions for years, result is that we had to pull out because the costs were getting ridiculous just to confirm the plans for it.

Government also don't want to help / invest in new Gas Storage facilities, which would mean we could purchase more gas at a lower rate at times with less demand, and store it safely for the winter, offering more protection against price volatility.

 

[Guinness Boy]

https://twitter.com/search?q=#AskBG&src=hash

 

[Lurker]

At least labour pretend that they would consider the renationalisation of our services and utilities.

And pretending is a good thing because ...... ?

 

[Raleigh Chopper]

I work for BG. I know it takes between 14 and 21 days to notify your current supplier. This is due to distance selling regualtions - Energy Companies's have to offer a two week cool-off period, during which point they aren't allowed to contact your exisiting supplier in case you change your mind and cancel in cool-off.

In our defence, we're offsetting the price for all pensioners and those with disabilities and vulnerabilities by giving them a addional £60 credit over the winter to cover the winter price increase, which is on top of the exisiting Winter Fuel Allowance. Don't think SSE did that.

It's true we have to think of the shareholders, because without them, there would be no investment in energy supply. Without dividends, there's no fresh investment. And also, without dividends being paid out, a lot of peoples pension schemes would be down the pan. If the government still owned the utilities, it would be roughly the same situation. They wouldn't exactly want to run at a loss.

And personally, I don't think this has anything to do with the Fuel price-freeze thingy. All thoughts are my own, as well.

With respect nothing the companies or their reps wash with me or millions of others. Its been going on too long for it not to be obvious they can do and say what they like and get away with it due to no real regulation and successive weak government.
Its time the people said no more we are being ripped off.
The old and poor freezing in their houses or making a decision of hesting or feed the kids absolutely disgusting.
British Gas said a while ago they would not raise prices due to the huge profit made during last years cold winter so people switch to them and they raise prices. Truly digusting company awful customer service too.

 

[Tim Over Whelmed]

OK, I don't love the power companies, I agree with a free market and also believe we need more players on a level field to make it more competitive.

Now, most companies would aim for, and mostly succeed, in achieving an 8-12% net profit, even retailers achieve 5-8%. Most power companies make 5% so are they really ripping us off? I'm not saying their not I'm just asking.

The wholesale price has risen, the cost of distribution has increased as has Govt taxation. All valid points for an increase.

There can be many reasons or answers like "they only make 5% but in awfully inefficient organisations" or "they've inherited a network needing massive investment from years or underfunding" or "the country is suffering from a policy of over reliance on Johnny Foreigner and now pay through the nose for their power"

So yes, feel free to hate the energy companies but I think we need to look at successive governments lack of investment.

 

[blue2]

Urgent need to reduce our energy usage in the Blue2 household we are currently working on a 25% gas reduction for this year having last year reduced our electricity use age by 50%

 

[fat old seagull]

Won't somebody think of the shareholders?

Well as they are mostly overseas, it won't be me. This is what happens when governments sell national interests. Give it a year and it will be a quid to send a letter. Nationalising Parliment however might be a good thing.

 

[beorhthelm]

Well as they are mostly overseas,

its fitting as thats where alot of the regulation and energy is coming from.