Energy Prices and Politicians Views

  Newuser939 18:50 PM 10 Oct 13
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The latest rise in energy prices will, no doubt, prompt politicians to shout that energy companies' profits are too high. However, instead of simply saying that (which is a very easy option), is there any possibility of a politician (Ed Milliband, for example) telling us what level of profit would be reasonable? PS Does anybody else find the need to think of at least five words for a heading a bit irritating?

  oresome 19:05 PM 10 Oct 13

It doesn't really matter what Ed Miliband thinks, but it does matter what I as an investor think!

I invest in a number of utility companies and therefore part own these companies. The prospect of capital gain is limited, but the revenue stream of these companies is assured and a dividend of 4.5% or so is payable.

The long term return from equities in general is around 8% made up from both dividends and capital gain. If the utilities cannot match this figure, they have to offer something else........which is less risk, to be attractive to an investor.

If the political risk undermines this confidence, investors will seek alternatives. Who's going to finance the power stations we so badly need then?

  spuds 12:06 PM 11 Oct 13

Ed Miliband gave his opinions on this, the other day in the BBC Watchdog programme.

It would now be very interesting to see what the CEO's of the energy companies have to say on the same BBC Watchdog programme starting with the first interviews of the CEO's who are willing to participate. Apparently, some CEO's have flatly refused to accept the invite.

I seem to recall that an investigation programme was televised, just before the banking fiasco. And invites were sent out to all the major bank CEO's at that time. Not one CEO I believe, wanted to be interviewed or participate, and look what happened after that?.

  fourm member 12:15 PM 11 Oct 13

Either I'm getting forgetful or the site is losing posts.

I'm sure I pointed out that high prices are one way to manage demand and some people are saying that we could be very close to power cuts this winter. By 'some people' I mean independent experts not power company PRs.

There's a reason why gold is a lot more expensive than iron - there's a lot less of it around.

  namtas 15:27 PM 11 Oct 13

Im sure I pointed out that high prices are one way to manage demand

With the exception of course of when rapid rising prices are linked to life's essentials, in which case it will be for many this winter, eat or heat.

There's a reason why gold is a lot more expensive than iron - there's a lot less of it around.

In addition an iron wedding ring doesn't quite generate the same appeal as a gold band

  fourm member 15:57 PM 11 Oct 13

namtas

'it will be for many this winter, eat or heat'

If excess demand results in power cuts, the option to heat will be taken away.

  rdave13 17:26 PM 11 Oct 13

The eating option will also be difficult for some, Independent.

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