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The Year Of The Fox

Energy Providers

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Posted

This is one area the Tories have lost out to Labour on. Milliband was quick to make energy prices a political issue and so far all Cameron is able to do is try to sound sympathetic.

Posted

I heard that Milliband was all over him and Cameron was unable to answer. Obviously the Tories on here will disagree. I reserve judgement. I think more is needed than 'sounding' sympathetic when it comes to peoples lives.

Posted

Catch 22 really.

 

While in private control, businesses run as the name suggests - to generate money for the shareholders and increase working capital/profitability.  Any investment or innovative renewable technology which hinders such profits will only be made at the risk (or at least a contribution, after all these companies do spend millions a year on investment) of the government/tax payer/consumer in subsidies and rising bills.  Take Hinkley Point C, there's no way EDF or any other company would invest in this without assurances on subsidies and/or output prices - but the the Government needs to guarantee energy supplies for the future, something has to give. I'd be cautious about the plausibility of any government restricting price rises.  Regulation is one thing, but restricting competition and freedom of trade would just probably be illegal under EU law.  More so when prices often fluctuate with energy companies buying oil/gas supplies 6 months in advance.

 

On the other hand, nationalise and you burden an already tight public purse and lose the private investment.  One of the main reasons for privatisation was knowledge that our infrastructure was becoming outdated and in need of private financing, I don't suspect we can full afford to take this all on ourselves but there we go.  It does grind me slightly however that prices only ever freeze or go up whereas fuel prices do go down at times.

 

No easy solution really - although I'm sure many think there is.

Posted

So regulation is illegal under EU law but nationalisation is ok?

 

If you're asking me: nationalisation by a country is not incompatible with EU law, no.  

 

I personally would not include a finite price fix as falling into the category of regulation.  I'm not aware of any precedent of a Government imposed price fix going to the courts (I think Belgium or the Dutch tried something similar) so whether it would be illegal or not would be the subject of much debate.  One thing's for sure, at least one if not all of the big six would challenge this and the only people likely to benefit are the lawyers.

 

Ofgem already has regulatory powers and companies do need to inform them of intended price rises and to justify why they are required.  However price fixing is a step further than regulation and on the face of it going into a sector and saying 'you, Mr Company, can only charge £X and generate £X profit' is not really in line with the free market on which EU law sits.  So yes, it probably would be or at the very least would take some serious justifying both here and abroad.

Posted

If you're asking me: nationalisation by a country is not incompatible with EU law, no.  

 

I personally would not include a finite price fix as falling into the category of regulation.  I'm not aware of any precedent of a Government imposed price fix going to the courts (I think Belgium or the Dutch tried something similar) so whether it would be illegal or not would be the subject of much debate.  One thing's for sure, at least one if not all of the big six would challenge this and the only people likely to benefit are the lawyers.

 

Ofgem already has regulatory powers and companies do need to inform them of intended price rises and to justify why they are required.  However price fixing is a step further than regulation and on the face of it going into a sector and saying 'you, Mr Company, can only charge £X and generate £X profit' is not really in line with the free market on which EU law sits.  So yes, it probably would be or at the very least would take some serious justifying both here and abroad.

 

I'm pretty sure that's what happens in the water industry. Doesn't seem to be illegal there. If it's achievable then i think ofgem setting prices and key deliverables would work well. Energy companies could still increase their profits by becoming more efficient, while the consumer would be protected from unjustified price increases. 

Posted

I'm pretty sure that's what happens in the water industry. Doesn't seem to be illegal there. If it's achievable then i think ofgem setting prices and key deliverables would work well. Energy companies could still increase their profits by becoming more efficient, while the consumer would be protected from unjustified price increases. 

 

Not sure to be honest.  Although I guess one difference here is the dependence on outside supplies.  Unrest abroad could quickly increase costs which make output at the fixed price uncommercial.

 

I think the part they'd really struggle with is the statement that 'your bills will not rise'.  It'd be a lot more realistic to say Labour would ensure that any rise is proportionate and in real money terms.  

  • 2 weeks later...
Posted

Cue the sponging off the taxpayer comments.

No one forced you to tell us about your letter.... If you had kept it to yourself you will not receive any possible comments.

This is that chip on your shoulder I was on about rearing it's ugly head again.

Posted

No one forced you to tell us about your letter.... If you had kept it to yourself you will not receive any possible comments.

This is that chip on your shoulder I was on about rearing it's ugly head again.

Maybe but no chip. I qualify because of my age and what I have paid out over the years.

Just thought I,d share the good news despite any forthcoming jealousy.

Posted

I paid something like £400-£450 last year on gas & electricity with British Gas.  Around £50 a month.  This is well below the average & we've never really bothered with switching things off stand-by & if it's cold......the heating goes on.  If we could be arsed, I reckon we could reduce costs significantly.

 

The house is only 3 years old & insulated to the hilt - to meet regulations.  It doesn't have attic space upstairs, as the ceilings are pitched.  I thought this would make the place more expensive to heat, but I'm not so sure now?

 

I went on Comparethemarket's website & I'm switching to nPower who reckon they can save me £100 a year.......price frozen until 2017.  Sounds a bit too good to be true.  We'll see.

 

I also get one of those meerkat toys, that sell on eBay for £20   :D

Posted

My gas and electric direct debit went up from £80 per month, to £130 earlier this year - this is pre the recent round of price hikes.

No increased winter fuel payment for me, infact I haven't had any pay rise for nearly 5 years now.

Posted

EDF using smart meters and even though greedy are less so than the others, think I might look at them and dump British Gas and E-on.

Posted

Just buy a McDonalds apple pie and put it on the floor, far cheaper.

 

I've even had to open some windows.

Posted

EON have reduced my monthly payments without me asking. I was quite a bit in credit. They review it every April.

The plan I am on runs out in Febuary and i can renew a month or two before. Don't know if their charges are going up.

I have saved a lot more over the last couple of quarters. Only just starting to put my CH on and only turn the hot water on when I need it.

Posted

EON have reduced my monthly payments without me asking. I was quite a bit in credit. They review it every April.

The plan I am on runs out in Febuary and i can renew a month or two before. Don't know if their charges are going up.

I have saved a lot more over the last couple of quarters. Only just starting to put my CH on and only turn the hot water on when I need it.

Get online ken, age uk fix 1 year v5, cheapest 1 year fix on the market !!!
Posted

Just switched my wife's car insurance when the renewal came up and saved £200.

 

Now THAT'S how competition between companies should work - instead of this ridiculous cartel situation we have.

Posted

Get online ken, age uk fix 1 year v5, cheapest 1 year fix on the market !!!

I have the Age UK plan. Did a search and it was still the best but it ends in feb. Can do the new one within 60 days i think

 

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