Energy costs for home

[BCram]

and business. Seems to me that the profits being made by the energy suppliers are being made because there has been little increase in the cost of production. This forum has guys who know the nuts and bolts of energy production and I hope that they might have some calming thoughts.
The Suez crisis lead to petrol rationing and people didn't use their cars, if they had them. The miners strike in the 70's led to 3 day week and a major shift in energy supplies.I think we are being panicked by a Mainstream TV service that mistakenly believes that by showing evermore graphic tales of personal dismay at price rises, and contrasting this with the profligate payments to the energy industry they are actually helping.
My view is that they are wrong. Demonising politicians, who are the only people, I think, can curb or change the systems we have for selling energy, will do nothing to help us.

[islaydarkblue]

and business. Seems to me that the profits being made by the energy suppliers are being made because there has been little increase in the cost of production. This forum has guys who know the nuts and bolts of energy production and I hope that they might have some calming thoughts.
The Suez crisis lead to petrol rationing and people didn't use their cars, if they had them. The miners strike in the 70's led to 3 day week and a major shift in energy supplies.I think we are being panicked by a Mainstream TV service that mistakenly believes that by showing evermore graphic tales of personal dismay at price rises, and contrasting this with the profligate payments to the energy industry they are actually helping.
My view is that they are wrong. Demonising politicians, who are the only people, I think, can curb or change the systems we have for selling energy, will do nothing to help us.

Thanks for your post.
I can remember in 1973 the price of oil shot up and petrol coupons were given to every car owner in the U.K. to be used in the event of a shortage of petrol. No unleaded petrol in 1973 because the magic words ‘climate change’ was never used.
In my opinion the cost of social tariffs, feed in tariffs paid to the owners of wind turbines and solar panels and the cost of installing 1st generation and 2nd generation smart meters should never have been added to the cost of energy bills but instead paid by general taxation.
Ofgem should be publishing the maximum unit price per kilowatt hour and daily standing charge that an electricity billing company can charge with effect from 1st October 2022.
I also think that businesses should be charged the same unit price per kilowatt hour and daily standing charge for electricity and gas as a domestic customer.
These businesses use the same electricity as people living in a house so why are businesses being fleeced by electricity billing companies.
Businesses who use heating oil pay the same price for a litre of heating oil as a domestic customer so why not the same for electricity and gas billing companies.
Politicians in both Scotland and England should be explaining why there is no price cap for businesses in Scotland, England and Wales for electricity and gas.
Finally. A couple of weeks ago there was an article in the Sunday Times newspaper where the owner of Octopus energy stated that he was still using energy that he purchased two years ago. If correct then Octopus customers are being ripped off as he is charging a far higher price for their energy than he paid for it.
Ofgem should be demanding that all the electricity and gas billing companies state when they purchased their gas and electricity and what price they paid for it.
No doubt companies like Octopus will now be stating that we will have to pay high prices for our electricity and gas because it will take many years for it to be used.
Too bad. When the price of electricity and gas falls we should be receiving a reduction in our electricity and gas bills at the first quarterly review.

[Deeranged]

Finally. A couple of weeks ago there was an article in the Sunday Times newspaper where the owner of Octopus energy stated that he was still using energy that he purchased two years ago. If correct then Octopus customers are being ripped off as he is charging a far higher price for their energy than he paid for it.
Ofgem should be demanding that all the electricity and gas billing companies state when they purchased their gas and electricity and what price they paid for it.

Surely they have to charge the going rate regardless of when the energy was procured? Otherwise they can't afford market price to replenish resulting ultimately in them running out - that helps nobody.

[islaydarkblue]

Surely they have to charge the going rate regardless of when the energy was procured? Otherwise they can't afford market price to replenish resulting ultimately in them running out - that helps nobody.

So you are happy to pay 26p per unit for your electricity which has previously been purchased by electricity billing companies like Octopus for half the price namely 13p per unit.

[Deeranged]

So you are happy to pay 26p per unit for your electricity which has previously been purchased by electricity billing companies like Octopus for half the price namely 13p per unit.

Not really but I don't want my provider to turn round six months from now and say they're out of business because they haven't been able to replenish stocks.

Exactly the same happens when diesel and petrol prices go up - barrel price goes up by $X.xx the pump prices don't follow when stocks have been depleted do they? They go up at the same time because if the retailer runs the tanks down to zero the customer goes elsewhere when they close the gates and put the 'no fuel' signs up. Then they don't have enough cash to buy the next delivery.

Do supermarkets put the price of existing stock up when suppliers tell them the next batch is going to be 10p more expensive when they order it? Too right they do, they need that money to afford the next batch.

It's not rocket science Islay.

[islaydarkblue]

Not really but I don't want my provider to turn round six months from now and say they're out of business because they haven't been able to replenish stocks.

Exactly the same happens when diesel and petrol prices go up - barrel price goes up by $X.xx the pump prices don't follow when stocks have been depleted do they? They go up at the same time because if the retailer runs the tanks down to zero the customer goes elsewhere when they close the gates and put the 'no fuel' signs up. Then they don't have enough cash to buy the next delivery.

Do supermarkets put the price of existing stock up when suppliers tell them the next batch is going to be 10p more expensive when they order it? Too right they do, they need that money to afford the next batch.

It's not rocket science Islay.

If your electricity billing company goes bust then your account will be taken on by another electricity billing company.

[The AuldYin]

So you are happy to pay 26p per unit for your electricity which has previously been purchased by electricity billing companies like Octopus for half the price namely 13p per unit.

I buy and sell at a profit every day is that not the point of being in business?

[BCram]

Islay, I think the problem is that trying to sell fixed price contracts at competitive prices to grow their business, they are mistakenly thinking that this is a good way for an energy company to operate. EDF for example are part owned by the French government. Maybe we should review our free market approach?

[islaydarkblue]

Islay, I think the problem is that trying to sell fixed price contracts at competitive prices to grow their business, they are mistakenly thinking that this is a good way for an energy company to operate. EDF for example are part owned by the French government. Maybe we should review our free market approach?

Opening up the electricity and gas billing market without ensuring that all electricity and billings companies were fully funded was a big mistake by Ofgem and we are now paying the costs of all these companies going bust through the greatly increased of the daily standing charge on our bills.
Incidentally there is no standing charge on heating oil bills because heating oil customers are responsible for the installation and cost of their own oil tank.

[deecom]

most of the energy companies in Europe are regulated by their own governments, thats why companies like EDF are here in Britain.
The energy companies are not regulated in Britain and can raise their prices when it suits them.