Any Price Reductions on Gas / Electricity Yet?

  peter99co 19:23 05 Jan 09
Locked

It all seems a little quiet to me. Have they (the energy companies) forgotten us or are they expecting us to wait until they have us on our knees?

Anyone in the know?

  canarieslover 19:30 05 Jan 09

What do you reckon?
click here

  oresome 19:31 05 Jan 09

Gas and electricity prices are inextricably linked to oil prices, so we were told on the way up. The link seems to be somewhat elastic on the way down.

  robgf 19:35 05 Jan 09

Have electricity prices ever dropped? I don't remember any cuts over the last few decades.

  laurie53 20:20 05 Jan 09

They haven't forgotten you, but they haven't forgotten their shareholders either.

If a choice between them and you the company, any company, will look after its shareholders every time.

  T0SH 22:47 05 Jan 09

Spot prices @ 60.75 pence per therm 1 therm of natural gas = 29.3 kWh which equates to 2.0734 pence per kWh cheapest rate I get is 3.209 pence per kWh which adds up to almost 55% mark up (on the spot price not the contract deal rates they pay for gas)

You can bet their directors end of year bonuses will be almost the equivalent of some small countries national debt

Cheers HC

  natdoor 09:05 06 Jan 09

Do you expect to receive gas at the spot price when your supplier is paying more for it as part of a long-term contract? The hedging of prices and currencies is used to bring some stability and to guarantee supply. It works in your favour when prices are rising above the deal price. I heard recently that Ryanair had just hedged against further oil price rises before the price started to collapse, so clearly timing and judgement are important.

The problem for the consumer is that there is no transparency of the long term ratio of price at which bought to price at which sold. Supposedly competition will ensure that the customer gets a fair deal. However, we have all seen what markets can do, so it is probably necessary to have some mechanism for price regulation.

  oresome 17:47 06 Jan 09

Perhaps of more importance than price is the security of supply.

The latest debacle with Gazprom cutting supplies to several countries demonstrates the fragility of our wellbeing.

  dagnammit 11:01 07 Jan 09

NIE in September raised the price by 33%... it increased the price previously before that in the same year.

They reduced the current price by a measely 10% at the end of December.

Net profits were £150,000,000 for the company, for last year, I'm looking forward to seeing their profits for this year.

  spuds 16:07 07 Jan 09

Price reduction, you have to be joking. What people do not realise, is the utility companies have to keep any profits for future developments. And that might include Russia tightening the distribution of their gas supplies.

What did Fagin state "Got to make a schilling or two!".

  T0SH 18:51 07 Jan 09

natdoor

Spot market prices are generally much higher than the contract rates energy suppliers pay, that is why for comparison I based my calculations on the higher spot market prices

So quite how you get them paying prices higher than the spot market prices puzzles me somewhat ?

Cheers HC

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