Energy rip-off - it has to stop!
Discussion
Mods: I appreciate that this is probably better placed in NP&E but I'm way short of the required 1000 posts in order to be eligible to do so. I'd be grateful if this post could be relocated or allowed to run it's course as it's a topic which I imagine many of us feel strongly about.
The BBC are reporting today that Centrica (the owner of British Gas) have increased profits from £262m in the first six months of 2021 to £1.34bn. They are also reporting that Shell have posted profits of £9bn for Q2 this year.
Surely now the govt and regulator need to sharpen their teeth and get a grip on the endless and frightening energy price rises as it is painfully evident that greed and profiteering are rife? There’s a limit on how much can be blamed on the Ukraine situation alone (and Russia) and it’s about time the energy industry was called out on it. On Sky news at lunchtime it was also mentioned that the UK no longer has much gas storage capacity - how has the government allowed this to happen and not ensured a reasonable degree of energy security?
The BBC are reporting today that Centrica (the owner of British Gas) have increased profits from £262m in the first six months of 2021 to £1.34bn. They are also reporting that Shell have posted profits of £9bn for Q2 this year.
Surely now the govt and regulator need to sharpen their teeth and get a grip on the endless and frightening energy price rises as it is painfully evident that greed and profiteering are rife? There’s a limit on how much can be blamed on the Ukraine situation alone (and Russia) and it’s about time the energy industry was called out on it. On Sky news at lunchtime it was also mentioned that the UK no longer has much gas storage capacity - how has the government allowed this to happen and not ensured a reasonable degree of energy security?
Tricky position to be in in a number of ways. Centrica would be failing its shareholders (ie most on PH if you have a pension scheme) if it sold at below market prices.
If it sold at a discount, arbitragers would most likely find a way to buy at this discount to sell on and make the profit themselves.
If it started selling at a discount, the share price would plummet making it an easy target for corporate predators, most of whom we know then channel taxable profits abroad to the detriment of all of us. HMG has no track record of preventing such corporate raids on UK companies.
If it sold gas to BG at a discount, for onward sale to retail customers (ie some on PH), then other retail suppliers would cry foul/abuse of dominant position etc.
As it's still a UK company, so HMG is already benefiting from additional Corporation Tax from the additional profits
Not what anyone paying a sky-rocketing bill wants to hear I know, but it really isn't as simple as "big profits bad". And no, I don't have the answers.
If it sold at a discount, arbitragers would most likely find a way to buy at this discount to sell on and make the profit themselves.
If it started selling at a discount, the share price would plummet making it an easy target for corporate predators, most of whom we know then channel taxable profits abroad to the detriment of all of us. HMG has no track record of preventing such corporate raids on UK companies.
If it sold gas to BG at a discount, for onward sale to retail customers (ie some on PH), then other retail suppliers would cry foul/abuse of dominant position etc.
As it's still a UK company, so HMG is already benefiting from additional Corporation Tax from the additional profits
Not what anyone paying a sky-rocketing bill wants to hear I know, but it really isn't as simple as "big profits bad". And no, I don't have the answers.
B235r said:
If the news comes true that next year the prices are going to be nearly 4k a year I'm deffo not paying that works out to about £330 per month
There taking us all for mugs
Mine will be over £450/month after this October's price cap change. I don't even live in a big house. After next January's hike it'll probably be cheaper to be on a permanent all-inclusive holiday than stay at home and pay for rent, energy bills and food.There taking us all for mugs
I'm starting to wonder what it'll take for people to start burning down the premises of companies like Centrica, Shell, etc.
Ukraine/post CV-19 has created a spivs market. People who bought gas/oil ages ago at a cheap price are now selling it at a high price.
Global free market has become concentrated in a few big players, which means we get f
ked. Govt will do nothing. They are owned by UK and foreign oligarchs.
Anyway, haven't you heard - it's the railway workers who are causing all the price inflation.
Global free market has become concentrated in a few big players, which means we get f
ked. Govt will do nothing. They are owned by UK and foreign oligarchs.Anyway, haven't you heard - it's the railway workers who are causing all the price inflation.
B235r said:
If the news comes true that next year the prices are going to be nearly 4k a year I'm deffo not paying that works out to about £330 per month
There taking us all for mugs
So what are you going to do, not cook your food or heat your house?There taking us all for mugs
It’s going to be a lot more than that anyway, apparently the average house is going to be paying £500+ a month. £330 a month would be a cheap rate.
ChocolateFrog said:
British Gas is a separate part of the business, which I believe is losing money.
If I'm reading the results correctly - and that's not a given - British Gas Energy, the bit that sells to joe public made £98m profit, or £2 per customer per month.Most of the profit comes from getting oil and gas out of the ground and selling it at the new market rates plus their share of our nuclear power plants.
"Upstream adjusted operating profit increased to £906m (H1 2021: £75m)"
"Nuclear reported adjusted operating profit of £286m (H1 2021: loss of £38m), reflecting the higher wholesale price environment, increased generation volumes and lower costs following the closures of Dungeness B and Hunterston B"
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