OFGEM...

[Chris_Boro]

What's the point of them?

Hiking the price cap because wholesale price have gone up, but never push it down when it's low.

Same bull every year from energy companies justifying increases, if its not high wholesale prices its "but network costs".

Often CEO accepts that for those on the breadline "its going to be a tough time for families", I'm sure that's comforting.

Disgrace.

 

[JonnyHistory]

All utilities and infrastructure should be nationalised in my opinion. The only argument against it is generally a 'but, but, the 70s', that was 50 years ago now! I see very little downside considering how expensive utilities are getting and how much we still shovel into those companies in ways of subsidies and tax breaks. Profit for something that is essential to modern life is morally abhorrent.

 

[ThatFragranceGuy]

Except they have reduced the price cap previously...it shouldn't matter anyway because you never want to be affected by the cap - the cap is just for people on the energy firm's standard rate, which you almost never want to be on much like mortgage SVR's (with some exceptions). Not sure why people think nationalising will make it any cheaper - check out how many energy firms go bust every year because of spiralling costs - not many things tend to run really efficiently and cheaply when nationalised, and you would have no way to switch to cheaper deals like we can now.

Without the cap you would probably be paying even more. I used to work for Npower in Leeds and they were constantly having to costcut everything and struggling to make a profit. Most of the tariffs they were launching were deliberately expensive as they would only launch them if they were going to make money, whereas the little energy firms that keep popping up all scramble for cheapest prices, but many of them go bust or are burning money like nobodies business paying out referral fees. Trouble is its generally the savvy customers using them so as soon as they stop being the cheapest, they leave in droves to whoever is.

 

[JonnyHistory]

Except they have reduced the price cap previously...it shouldn't matter anyway because you never want to be affected by the cap - the cap is just for people on the energy firm's standard rate, which you almost never want to be on much like mortgage SVR's (with some exceptions). Not sure why people think nationalising will make it any cheaper - check out how many energy firms go bust every year because of spiralling costs - not many things tend to run really efficiently and cheaply when nationalised, and you would have no way to switch to cheaper deals like we can now.

Without the cap you would probably be paying even more. I used to work for Npower in Leeds and they were constantly having to costcut everything and struggling to make a profit. Most of the tariffs they were launching were deliberately expensive as they would only launch them if they were going to make money, whereas the little energy firms that keep popping up all scramble for cheapest prices, but many of them go bust or are burning money like nobodies business paying out referral fees. Trouble is its generally the savvy customers using them so as soon as they stop being the cheapest, they leave in droves to whoever is.

You are working from the presumption that things will be inefficient, tax breaks and subsidies from the public chest has also been pumped into these companies already. Competition does not create any advantages for the customer in the main, a few pence here and there. Nationalised utilities offer the best opportunity for more consistent pricing and to try and remove bottlenecks and inefficiencies within the system.

I agree it is not a certainty, but, personally as previously stated do not think a modern society should make life essentials commodities.

EDIT: Grammar & sentence structure.

 

[asredastheycome]

All utilities and infrastructure should be nationalised in my opinion. The only argument against it is generally a 'but, but, the 70s', that was 50 years ago now! I see very little downside considering how expensive utilities are getting and how much we still shovel into those companies in ways of subsidies and tax breaks. Profit for something that is essential to modern life is morally abhorrent.

Sshh you will have people thinking you are a looney left Corbyn supporter. The selfish boys in blue would not stand for it.

 

[JonnyHistory]

Sshh you will have people thinking you are a looney left Corbyn supporter. The selfish boys in blue would not stand for it.

I would call myself a social democrat and a republican. Although depending on the given issue, like anyone really, my political compass can swing. Tribalism benefits nobody, it is impossible to satisfy everyone's needs, pragmatism is essential for any political discourse. Alas, pragmatism and critical thinking seem to be lost arts in Uk and US politics right now. It is all differing truths and wants for your team to win at all costs, it is horrific to watch.

 

[Chris_Boro]

Except they have reduced the price cap previously...it shouldn't matter anyway because you never want to be affected by the cap - the cap is just for people on the energy firm's standard rate, which you almost never want to be on much like mortgage SVR's (with some exceptions). Not sure why people think nationalising will make it any cheaper - check out how many energy firms go bust every year because of spiralling costs - not many things tend to run really efficiently and cheaply when nationalised, and you would have no way to switch to cheaper deals like we can now.

Without the cap you would probably be paying even more. I used to work for Npower in Leeds and they were constantly having to costcut everything and struggling to make a profit. Most of the tariffs they were launching were deliberately expensive as they would only launch them if they were going to make money, whereas the little energy firms that keep popping up all scramble for cheapest prices, but many of them go bust or are burning money like nobodies business paying out referral fees. Trouble is its generally the savvy customers using them so as soon as they stop being the cheapest, they leave in droves to whoever is.

I know they have reduced the cap slightly over the pandemic, but I meant actually push down that standard tariff cap when wholesale was low as it massively effects lower incomes on pre pay or those unable to benefit from better rates or DD discounts.

Standard tariffs should just not be allowed, it's way to complicated for the average consumer and is used by energy companies as a cash cow.

No where near enough has been done to help streamline the industry pricing and help those on low incomes cope.