Energy companies reveal all
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Finally, there's a break for consumers struggling with the highest inflation for 16 years!
The UK's supermarkets have reduced the price of petrol to below £1 per litre at some pumps, most banks are cutting interest rates, food prices are stabilising and the energy companies are, well, they don't seem to be doing anything at all.
With oil dropping to $70 a barrel from $14 over the past few months, you might expect to see the savings passed straight on to you, the customer.
Out on the street, Nicky met many people who felt angry about the cost of electricity and gas, and found confusion as to why prices aren't falling.
We asked the big six energy companies why it is that when wholesale energy prices rose, domestic prices soon followed - but now that wholesale gas, electricity and crude oil prices are falling, when do they intend to reduce our energy bills?
Here is what they had to say:
British Gas: "British Gas has a good history of cutting prices when commodity costs fall. For example, in 2007 we led the market down with two price cuts. However, in 2008 wholesale costs of gas and electricity have been much higher, leading to price rises; and in fact 2009 prices are running higher still. If we see sustained and significant falls in the wholesale costs of gas and electricity we will pass on savings to our customers."
EDF Energy: "When we announced our July price rise, we made clear at that time we were only passing on some of the rise in wholesale energy costs which had increased by up to 70 per cent in the first half of the year. In order to minimise the price change effect on our customers, we buy our energy supplies many months in advance. As a result, we would need a much longer period of sustained lower wholesale prices to be in a position to reduce retail tariffs."
E.ON: "Power and gas is bought in advance on the wholesale market, which means there is always a period between when the wholesale price rises or falls and when customers' domestic bills rise or fall. This process allows us to even out the cost of energy for our customers, protecting them from sudden peaks and day-to-day changes in the wholesale energy market.
"We would need to see a sustained drop in wholesale prices before retail prices come down, in the same way as we don't immediately increase prices when wholesale prices go up."
NPower: "We know how much pressure households are under at the moment and we are doing everything we can to protect our customers from the huge fluctuations in the wholesale market.
"Wholesale gas prices* began their upward trend in February 2007 and climbed 286 per cent to reach their peak in July of this year. Although they have fallen back they are still 204 per cent up. During the same time period we have only increased our gas retail prices by 27 per cent. This means that we have still not reflected all of the latest wholesale cost increases in the prices we charge our customers. "
"We hope that we will continue to see wholesale costs come down to a point where current prices can be reduced."
*avg year ahead
Scottish and Southern: "The price a customer pays is determined by the wholesale price of gas, not oil. Despite the dramatic drop in the price of oil, wholesale gas prices remain at very high levels. We are paying close attention to what is happening in the wholesale energy markets, but there would need to be a substantial and sustained fall in wholesale prices before we could state with any certainty what is likely to happen to customer's energy prices in the future."
Scottish Power: "Thankfully there has been a short-term reduction in wholesale energy costs - but the wholesale gas market remains exceptionally volatile.
"To help shield our customers against the worst of this volatility, and to ensure sufficient supply, we purchase gas through a series of contracts in advance for fixed periods of time. That is why on 1 September when we were forced to increase our gas prices by 34 per cent, the wholesale cost of gas had in fact risen by 65 per cent over the previous seven months."
© MMIX~RS~q~RS~~RS~z~RS~29~RS~)
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Energy Companies
Why do energy companies that offer a "Green Tarrif", claiming to generate electricity from renewable sources, put up prices in line with fossil fuel, particularlyn oil and gas? The Wind and Rain (for hydroelectricity)do not cost any more!
Mike Ridley
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Woah! I hope I havn't been conned by British Gas. Your interviewee implied there was a strong possibility of gas prices falling next spring. Is this why British Gas were falling over themselves to offer me a fixed price for the next couple of years a month or so back on the new higher prices? I hope not. Worth investigating I reckon. I havn't read the small print but I know there's a 'getout' penalty. I *think* its for 2 years and I *think* it won't change if prices fall. I may be wrong. But I am sure you can check this out and see whether there has been some devious behaviour going on.
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"The price a customer pays is determined by the wholesale price of gas, not oil." I'm sorry but i'm pretty sure I heard the head of British gas say that oil prices were directly linked to prices rises in household tariffs. The are taking us for a ride, and profiteering.
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Hang on!
We have to wait until whole sale prices start to fall. I'm sur ethat was said during tonights the interview; and well will that be?
Well whole sales gas was over $8.00 MMBTU during the summer. The cost being directly linked to the cost of oil.
Well tonight gas cost $6.75 MMBTU on NYMEX market.
www.nationalarchives.gov.uk/ufos
Check it out.
Gas has gone down $2.00 or 25%. Why aren't our Gas prices down 25%?
25% reduction NOW!!!
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I am surprised that people haven't noticed that the price of petrol and diesel has gone up during the summer months for the past few years when the public are more likely to be using their vehicles for leisure trips and will require over and above their usual fuel requirements. The only difference is that this year the price of Oil has gone through the roof so they have been forced to pass that on to the consumer too. Our domestic energy providers are jumping on the bandwagon, we are a captive customer base, we are locked onto the national grid for Electric and Gas and there is nothing we can do except modify our consumption and where the elderly are concerned this will most certainly mean tragedy for some. Time to rethink the whole system as we are at the mercy of Russia at the moment for Natural Gas. They are the largest supplier and we are just one of many customers, and until the LPG supply system becomes fully operational we will for the forseeable future be at the mercy of Easter Europe.
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I work for a power company and would like to mention, the power companies increase the price of gas when wholesale prices are high.
I know that the companies pay in advance, so if they buy the next 6 months worth of gas now, it should be at the cheaper price. however the customer will not see any reduction in the bill until 6 months time. Once the prices go up the energy companies increase the prices almost straight away so a customer may have only had 3 months of cheap gas not the 6 months the the energy company has had. One more thing. everyone knows that we import gas from outside the UK, so there is very little we can do about the prices, however power companies make the electricity, if a company was to states that yes the price of gas has gone up but we will hold or reduce the price of electricity to blance the bills. the company would have millions of customers moving to them. which will increase the revenue for the company. which will stop the company losing any profits
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"If we see sustained and significant falls in the wholesale costs of gas and electricity we will pass on savings to our customers." Come on, do you think we were born yesterday? The comments of the energy companies show the contempt that they have for the end users intelligence. I know it would be a struggle for many, but if we could stand united and turn off our electricity and gas more than we do at present not only would it hit the moraly corrupt profiteering of the companies but we would concurrently help the environment.
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Our supplier, Atlantic Electric & Gas have just written to us (Oct 2008) to advise a price rise backdated to 25 August.
This means:
- we cannot check bills
- we had no opportunity to find a cheaper supplier.
Is this allowed?
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energy companies told their customers that gas and electricity prices are directly link to oil.it is therefore unacceptable to argue that wholesale gas prices on the markets are "sticking". The goverment should apply pressure on the companies in question, to cut prices in line with oil or face paying windfall taxes witch in turn will be passed on to their customers
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After taking advice from one of the big six I fixed my rate until December 2009.
This was at an increased rate to the normal rate for both gas and electricity. If there is a sharp fall in prices are there going to be any decreases for loyal customers who have fixed their rates. There must be thousands.
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In tonights programme, you prioritised on the cost of GAS reducing, which as explained, has been held at a high rate by the European moguls, and therefore, at the moment, is not necessarily linked to fuel prices in the UK.
What about the price of ELECTRICITY?? Is this also linked to the European moguls OR to the UK fuel price, i.e. the power station generators in this country, run by our fuel??
If it is linked to our fuel prices, then WHY do we not see this reflected in the price of electricity NOW?? This would then help during the winter, with one of the major utility bills reduced!! jbfullers
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nicki cambell did not push the energy person very hard and got no answers.why not get the goverment minister to push for a one off tax hit on each power company in the new year,70% tax on everything more than 10% rise on the last years profit.
the goverment should also give pensioners and all people on any benifit £300 towards there bills.
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Fine for gas prices but what about electricity? Coal prices have fallen and only a small propotion of electricity is generated uding gas.
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My sister works for 1 of the energy companies and i would just like to say to people to spare a thought for those people on the other end of the phone when you ring to complain about price rises,they are there to answer questions and try to help it is not their fault that prices go up and ranting down the phone to them does not help!and please try to remember they also have to pay their bills too,and before you ask, not every company gives staff discount,employees are treated just like any other customer,their bills go up too.next time put yourself in their shoes,how would you like to be shouted at on a daily basis for something that is not your fault!!
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My understanding is that the UK electricity charges are 4 times that of those in France. I also understand that the French government/regulators imposed a maximum increase in prices in line with inflation. Hence when UK prices increased by some 30+%, the Frence prices increased by about 5%. Is this correct? If so, why has the UK government/regulator failed to protect UK consumers in the same way? It is no wonder that EDF wants to dominate the UK market when the mark up is so much higher that it's home market. I also understand that last week wholesale gas was being given away free because of a lack of storage! Why has the UK no gas storage facilities?
Kindest Rgds
Michelle
Stroud, Glos.
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We are all switching to low cost light bulbs - spending less on our bills (per KWh). I work for one of the big six (my name is hidden!). I can tell you, we are concerned that consumers spend less as a result of the EU drive to low power bulbs - so of course our rates are staying high - we have to make profits somehow. Sorry!
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I heard them say that the reason the charges are so high is because of the wholesale gas price - but I don't have any gas, only electric, so why haven't my charges gone down? I already pay more because I can't buy my electric with my gas (not my fault there's no gas on my estate), but I also get the excuse that my prices are high because of the price of GAS!!!
In Financial Services we have to "treat customers fairly" which means we can't charge two lots of customers different prices for the same service, so why can the energy companies get away with it?
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The energy companies are trying to rip us off. They told us that the cost of gas is pegged to the price of oil. Now they are doing their best at stalling afterall their shareholders matter more than us consumers. On the Petrol front I wonder if the price of petrol would ahve come down if the supermarkets did not have a third of the market. Pity the supermarkets don't run the energy market
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i agree with the fact that energy prices should come down now that fuel is doing so,but what i want to know is WHY are people on pre-payment meters charged more that people paying by direct debit? we are paying in advance for our supply,so are in credit and,usually, it's people who are on benefits or low wages who have these meters,so they are struggling to pay. i am dreading the cold weather as i know i will need to put alot of extra money on the meters just so i can heat my flat etc.i have never understood why they charge us more...i know it's a convienience to be able to pay this way,but,for some,it's the only way they can do it.
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i pay £77.00 a month for my electric for a 2 bed house, we do not have gas so we have to rely on storage heaters and an immersion heater (which we dont use), i work full time and am only at home during the evening and weekends and yet i have just received my new bill and i am only £1.99 in credit. how can this be. I wish these prices would hurry up and fall and yet I think its going to be a very very cold winter
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I said earlier that Gas prices were $8.00 MMBTU they actually went up to $13.00.
http://www.energywindow.com/price/NG.shtml
I want a 50% reduction NOW.
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Over here in the Netherlands we're told that energy prices will be adjusted next April. So, we'll pay the higher price during the winter. And the adjustment will be just in time for the next rise in oil prices!
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Nick - Sorry but you're no Jeremy Paxman - more like a "fish on a bike" - you really should have been better prepared when you interviewed the guy about why energy prices have not come down yet - surely you checked the wholesale market for the cost of gas, it's only oil that's come down - succesive governments have sold us short as they allowed the "dash for gas" and now 70% of electricity is produced by gas - what a waste of a valuable commodity - Sir Dennis Rooke and previous chairmen of British Gas must be spinning in their graves - they fought "tooth & nail" to prevent the electric companies from frittering away our natural gas resources.
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To BriggsR - I would'nt worry, I have been with BG since they first introduced their fixed tariffs and it has always been to my advantage, energy may come down in the short term, but like house prices it will be exceeding inflation, best to invest in some energy saving products.
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As I cycled into work the other morning I started to think about the cost of energy. If I work really hard I can generate 300 Watts and I could just about keep this up for 1 hour. I am a lot fitter than the average UK citizen. Thus, I am capable of delivering 300 Watt.hrs. If I bought this energy as electricity from an energy company at 12P/KWhr. It would cost me 3.6p if I was on the minimum wage of £5.73 an hour it would take me 22.6 seconds to earn the energy I was capable of producing in an hour. Gosh, I thought, energy is cheap even if it has increased a little.
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As workers for the Ambulance Service. We reguarly see the effects of the older generation not heating their homes sufficiantly. As there has been a well publicised 60% increase in energy prices, how does the government and energy companies expect the elderly and lower waged to keep their homes warm AND to have food in their cupboards???
Food and fuel prices are getting concerningly high.
I have seen elderly people in the local supermarket buying the 'basic' brand of foods which doesnt have much nutritional content.
If Great Britain has a severe winter this year, many elderly will pay the ultimate price and will probably lose their lives.
The government cold winter payments have hardly kept up with the rapid inflation of energy prices.
Will it have to come to the elderly choosing food over heating or vice versa to make the goverment and the chairmans of the energy companies realise that changes need to be made NOW!!!???
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This comment was removed because the moderators found it broke the House Rules.
See link http://news.bbc.co.uk/1/hi/business/5402370.stm
The big power companies never mention this do they?
Curious why Watchdog didn't pick up on this either?
Hmmmm...
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Why is it these companies have no regard to us pensioners who have to find the extra cost to heat our homes, when our government pension does not rise with these price rises that you bestow upon us regardless.
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The Energy Retail Association spokesman said that wholesale gas prices hadn't fallen. This is not true - they have fallen 30% since 3rd September (ICE NBP Annual price). European wholesale gas prices are also tumbling. Consumers are quite right to demand that retail prices fall as quickly as they rose. Also, as most small businesses contract for a whole year during September/October it suits the 'big 6' to keep prices high.
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I feel quite sure that you as journalists you must be aware of for example excise duty on petrol and diesel.The same problem exists within both the gas and electrity suppliers.
Excise duty. A huge supplier of cash to the government coffers, that we can all agree with, but each year the miles per gallon of a particular car because of engine design increases, lets say 5%. so to stay even in revenue terms, they need to increase proportionately duties to stay even.
Just to stay even, this is a far reaching problem that really concerns me, forget global warming, use low energy light bulbs, don't leave the tele on stand by, measure the amount of water you need in the kettle and you will save money, I don't think so, the power generators/suppliers will increase their prices as like the government they need to stay even and better.
I have been retired for ten years, but spent a life time in environmental and pollution control problems globally, and for now what I can say, is, we are being taken for a ride. Not on global warming issues but on the transformation of energy which is a major problem in that the existing suppliers will increase their prices to reflect on the fall in demand.
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I reckon the reason the energy prices have increased so dramatically is not only to do with the price of oil. Its also because more people are becoming increasingly energy conscious. (and that should continue!)
Let me explain: energy companies are enjoying rising profits and every year targets are raised as they want bigger profits.
We consumers are being encouraged to be more energy conscious and are also trying to lower our bills by gradually using less energy.
But wait a minute, why on earth would the energy companies want us to use less electricity or gas?
Less energy consumption directly affects energy company?s profits meaning they won?t make their targets, so what do they do? Increase the prices of course so they do achieve them and bingo they meet the targets and get their fat bonus cheques.
That?s how although we?re using less energy our bills don't seem to be reducing in proportion.
It?s a viscous circle and it?s us who are paying for the fat cats greed.
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British Gas Bills
What is all this nonsense about 50% increase. Just received a new monthly Direct Debit payment request 73% higher! I have to find an extra £31 per month - a third of my state pension!
I am awaiting a response from Brit Gas. Why did I bother getting loft and cavity wall
insulation?
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To me it is blindingly obvious why this government doesn't do more to control the prices of the energy giants
Firstly high energy costs mean people will use less by neccessity which will help achieve CO2 emmission targets
Second bigger profits for the energy companies and high dividends to their shareholders means a bigger tax take for the government - they need it and by doing this its effectively additional taxation on all of us through our energy costs!
New Labour talk a good game but unfortunately its all spin.
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The Finacial Times this morning shows NYMEX natural Gas prices almsot 2% lower than 12 months ago. Whats going on? Isn't this the price that the energy companies pay? This price has been steadily falling since it's peak around July. Cheack the FT index on the internet yourself today.
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I have been corresponding with British Gas for several months since April 2008
I signed up for fix and fall prices in January 2007
OK at first - then they put me back on Standard Tariff - I wrote they put me on the correct tariff and the price WENT UP!
There are so many different tariffs and they vary by points of pence.
Now I noticed that they charge twice at the First banding and this applies on both Gas and Electricity pricing. We used to pay a higher price for the first so many units to cover the cost of the meter and then the lower cost for the remaining units.
Why two tiers of the same price???
I have asked again and again - no answers to that question.
Also British Gas want me to sign up to a fixed price until 2012 and yet your programme yesterday demonstrated that prices should be falling.
I believe that British Gas are dishonest and they should be brought to account and make the pricing simple
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The same "price hold" was offered to Scottish Power customers - do you think they know the price is about to fall ? Also the guy from the energy companies made no comment on the bonuses given to shareholders. Maybe their bonus should be linked to the reduction in charges to customers
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The delay in reducing fuel prices also occurs in with direct debit payments. Today I contacted E.ON who agreed to reduce my 1st. of the month payments by a third - my credit is in excess of 3 monthly payments - but it will take 6 weeks to implement. However, an increase in payment would be the next payment date.
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The gas is supplied to houses in a street, along one pipe. So can anyone explain why the suppliers all have different tariffs and different wholesale prices, when there is only one source of gas to neighbouring residential users? Let?s face it, they do not have their own individual transport and outlet overheads like petrol suppliers, with their various prices.
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Is it not time that we broke the stranglehold that these energy fat cats have over the lives of ordinary, hard working and vulnerable people (and businesses)? If we, in the UK are to survive this credit crunch, surely we should be securing our own energy at UK prices and not allowing ourselves to be exploited by over zealous european markets.
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Could anybody please tell me why gas & electricity prices are linked to oil prices - well they are linked when oil prices are going up but the link seems broken when oil prices are going down. As far as I know oil is not used to produce gas or generate electricty so why is there a correlation?
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I think the energy prices are disgusting. My elderly mother and father family cannot afford to turn the heating on for more that a few hours a day, they have to rely on 'wrapping up warm' and using blankets instead of putting on the heating because it is just too expensive.
People are suffering because of this and the energy / government only care about making money and what is in front of them - Out of sight , out of mind ??
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The figures Watchdog gave out this week for bonuses and people suffering fuel poverty were £1.6billion and 1.4 million respectively.
Divide the money by the people in fuel poverty and it equals £1142. Enough to pay most household's fuel bills for a year.
Greed pure and simple. We are ruining our home through greed.
The post above that says 'we've got to make profit' is all well and good. But be honest (and fair?), how much 'profit' do you really need? If anyone should suffer this winter because of fuel poverty, I truly hope these bonus hungry power companies are haunted by it for ever.
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I have a gas for free! Since May 2008 when change to pay monthly from pay as you go never received any bill ! I called them 100x times but they always said: 'Your bill will be ready tomorrow !' but never did and I could call again and I was told the same thing ;o) I gave up calling them and chasing them to send me a bill... The thing is that we are moving out of the country and I don't know who is going to pay a bill for more than 6month...
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My monthly DD's for Gas and Electric with British Gas has just risen from £60 pcm to £107,this rise took place after the Social Tariff / Essentials scheme had expired [conveniently]
I will now stuggle to find this extra money as I am on a pension. The winter fuel payment will help for a while, but I still feel I am being well and truly shafted.
No doubt if the price of energy at source fell through the floor, the energy co's would not MINUS my monthly bill. Lets hope we have a mild winter.
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Has anyone else just received a demand from their gas supplier to massively increase their monthly direct debit payment? We were paying £49.50 with £78 in credit and they demanded that this increase to £91 per month - nearly 100% increase. We queried this and they reduced it to £82, saying that gas had gone up in price! Have now switched suppliers and pay less in total per month for both electricity and gas.
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I received a letter from my electricity company telling me that its prices went up on August 25th 2008. Why can they do that? They did not tell me in August that the prices were going up and give me the chance to read my meter and give the correct reading. How do they know how much electricity I used pre Aug 25th and how much after? Also now they only send bills in 6 monthly,not quarterly so unless you can access your meter and work out how much you are using you have no idea the size of the bill waiting for you. Hope Tesco does not come after me and tell me that all my shopping bought after Aug 25th has gone up in price by 19.2%. How can my electricity supplier get away with this?
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Last week I brought my Nan a box of steak and kidney puddings. These took an hour to cook in the oven.
My nan is so worried about the cost of her electricity bill, she gave the puddings to my mum because and hours cooking with her electric cooker petrified her. I could have cried for her.
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I pay my bills by direct debit.I pay £64 per month and am in credit.I am informed by British Gas that they are taking £139.00 per month in November They claim that this is their estimate of my future bill.Customers beware !! Direct debit accounts have become a licence for utility companies to plunder your bank account.(I found that South West Water is sitting on £100 of my money which could be earning me interest.)Guess who is closing his convenient Direct Debit accounts?
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I think a trick was missed when interviewing the energy representative. He is evasive about dropping prices or that prices are too high, however the proof will be when we find there is a huge increase in the £1.64b profit of the energy companies. If this materialises then I think the government should put in a punitive one off tax in excess of the additional profits. Why whould the man in the street be overcharged in order to put more money into shareholders pockets when the avergae man in the street is finding things economically difficult.
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If we are so short of Gas in this country and so reliant on imports then WHY ARE WE EXPORTING IT?? look at the [Unsuitable/Broken URL removed by Moderator]website, it shows that we have been exporting our valuable north sea gas all summer! why dont we store it for ourselves. If there is no storage then stop pumping it out of the north sea during the summer.
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A couple of the comments above are looking at prices for natural gas in the USA (NYMEX). The market we use for natural gas in the UK is the ICE NBP (qv wikipedia) and that too has fallen by around 30%. See the SSH Associates website to have all these historical prices expressed in the units that consumers see - p/kWh
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If so many people know that wholesale gas prices have come down (I found out in two minutes by typing 'wholesale gas prices' into Google) how come Nicky Campbell just sat bewildered when the Retail Gas Expert quoted 'when wholesale prices go down we will pass the savings on to the customers'. Come on Watchdog do your homework beforehand and don't let them get away with it on the air when they're vunerable.
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Gary Felgate of the Energy Retail Association maintained (Oct 20th) that there was not enough cash available to bring down consumers' bills because his costs were still too high to allow a big enough margin; so where did the £1.6 billion paid out as dividends come fromI was surprised that Nicky Campbell did not press that point for an answer.(Peter in Raunds)
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a reply to previous comment from courteousdiamond. i currently work for an energy supplier and in regards to price increase letters being issued out after actual price increase they have upto 65 days by law to issue out this information after the announcement, understand not completely ethical. also i would like hust to say that take a moment out for us at the other end of the phone before you call as at the end of the day we are still affected as well as the customers with soaring energy costs and not allways nice to receive abuse when it is not our faults but thats the way it is.
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I received a letter from our gas & electricity provider this morning informing us that due to an increase in wholesale prices they are increasing their prices from 25 August 2008, which is almost two months ago!
Is that legal?
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I watched my Grandmother succumb to Bi-lateral Pneumonia many years ago because she was left with the terrible choice to heat or eat. That was then-this is now...how many more people will suffer in the name of profit?
I myself am currently on benefits due to ill health and need to find £112 A MONTH for energy bills, hard when your income is £320 a month for two people! Could someone please remind me was it all this bad before privatisation? Me-thinks not.......
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Have the government set the rate to try to get us to reduce our carbon emmisions?
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It's quite clear that Dr. Felgate's claim about wholesale gas futures prices not falling was totally spurious. One month wholesale gas futures prices have tumbled from over$13mm/BTU in July to around $6.8MM/BTU (Oct 23rd). Dr. Felgate is a spokesman for the Energy Retail Association, hardly someone who represents consumer interests. It would have been more appropriate to have had a spokeman from OFGEM, whose job it is to protect consumers from malpractices in the energy industry to answer questions as to why energy prices have not fallen
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All pensioners should be sent information about all benifits they may be entitled to claim. With one easy form to complete to apply for everything. Energy prices may have increased by around 60%, but they may not need toturn the heating down if they claim all benifits they're entitled to.
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Buy lots of thermal underwear!
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can any one give me a straight awnser as to why we have to pay !!extra!! for our elctricity as we use a token meter. what bugs me is that we have to pay more even thought they they never have to chase us for money. why is it we cant have the same deals as other customers when we get both our gas and electric from british gas just because we have an electric token meter. and whats with this standerd polacy £8 non refundable charge to replace your token key even if it isnt your fault. and there is no point asking to speek to a manager or supervisor as there both on holiday and im still waiting for them to ring me back 8 days and counting
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£1.6 billion was mentioned as the sum paid out in dividends. If these cos. were back in state ownership as they were before Thatcher privatised them that money would be saved and could be used to reduce the price of energy. It appears to me that a large proportion of the energy prices we are charged is down to sheer unmitigated greed by the cos. and their directors.
I used to work for North Thames Gas. We never had fuel poverty when it was state owned and we used to read 2 million customers' meters every quarter.
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Energy prices:- At no time do any of the items covering the current prices of energy supplies mention the situation of those who are unable to access supplies of mains gas - and this relates to a vast number of residents in rural areas. We are forced to use oil (100% rise in 12 months) or bulk Liquid Petroleum Gas (30% rise in 4 months). Those who use LPG are tied to a single supplier because that supplier provides and retains ownership of the bulk storage tank. Because of the procrastination of the legislature, prices are not regulated in the UK, and it is not possible to switch suppliers without bulk tanks being lifted and replaced - usually at cost to the consumer.
In the report dated October 7th 2008 House of Commons Business and Enterprise Committee wrote:
" We are concerned that there is not sufficient regulatory oversight of the market for
domestic fuel for households which are not connected to the gas network. The
Government should consider whether both the statutory duties of Ofgem and the
successor to Energywatch, the National Consumer Council, should explicitly cover the
market for fuels used by off-network households.
The Government will continue to monitor the effectiveness of regulation and consumer
support in all energy markets.
The new consumer body Consumer Focus will not be limited, as Energywatch has been, to
working for consumers in the mains gas and electricity markets. Consumer Focus will have
a particular remit to protect vulnerable customers.
In terms of regulation, the downstream oil industry, including the production and supply
of Liquid Petroleum Gas, is not subject to economic regulation in the UK, as the
Government believes the market to be highly competitive, operating as it does within a
global market comprising many different refiners, traders and suppliers. This represents a
different situation from the gas and electricity supply networks regulated by Ofgem, as part
of these networks are owned and operated by monopoly companies. In the markets for
LPG and heating oil, it is feasible for firms to compete with market incumbents in the
transportation and supply of these fuels, because the same infrastructure restrictions do not
apply.
The supply of heating oil and LPG is subject to UK competition law under the
Competition Act 1998, and the appropriate bodies act to regulate the sector. For instance,
as a result of concerns about competition in the market for domestic bulk LPG, the Office
of Fair Trading (OFT) made a market investigation reference to the Competition
Commission (CC) in July 2004. In June 2006 the CC published a report which stated that
difficulties in switching supplier have inhibited competition. The CC has arrived at a
package of remedies which is intended to make it easier to switch supplier, and will provide
greater transparency of pricing, providing information on which consumers will be able to
take this decision. It is expected that the increased ability of consumers to switch supplier
will increase competition in the market and put downward pressure on prices.
With these measures in place, the supply of LPG will effectively be regulated by the Office
of Fair Trading. The Office of Fair Trading also has powers to investigate allegations of
anti-competitive agreements and abuse of any dominant market position in the fuel
market."
Unfortunately, the committee seems not to recognise that the supply price of LPG Propane & Butane is set by Saudi Aramco (currently $790 per metric tonne) not the local UK providers. Perhaps the hot air generated by this committee over this matter during the last three years - to no effect - could be used to heat our rural homes!
Is it not possible for the BBC current affairs department to include the situation of all classes of energy supplies in its analysise, particularly since rural areas are largely populated by those who are deemed to be in "fuel poverty".
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On the 18th October I received a letter from Atlantic Electric and Gas saying they WILL (my capitals)increase prices by 29.2% and 19.2% for gas and electricity respectively fron 25th AUGUST. In an accompanying leaflet, in very small print, it said that if you switched providers within ten days you would be charged at the old rate. Presumeably they feel this lets them get away with the retrospective aspect of the hike.
Nowhere in the letter does it give an address to which you can write; leaving you to glean the address from leaflets (again in very small print - and then only the Registered address).
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TIME THAT THE BBC CHANGED ITS CLOCK!
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I do not have a pre pay meter but I am with E-on. I have just moved out of my family home and started to rent a flat on my own. I received my first gas and electric bill to find for that three months I had been charged £1,300. The problem is still being investigating.
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RE: eron
on the 27th Oct, watchdog showed a woman who had problems with her prepayment meter bill for eron. I too got a bill from them for about the same amount and I never had a token meter. I always had a key meter.
I given up contacting them as their customer service team to be very over welming and confusing. I wish they cancel this bill they gave me as it's really making me ill.
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British Gas rank as the worst customer experience in my opinion... I set up dual fuel gas and electricity in December 2007 hoping to get discount for both. BG failed to set up a direct debit correctly and apparently it appears they only deducted for gas only leaving me with a £670 bill through their own inability to bill me correctly. On contacting BG, I was expected to pay arrears and now I'm forced back to a more expensive pre-payment meter with a £10 surcharge per week. And to prove how incompetent BG is, they fitted the pre-payment meter but did not apply the £10 surcharge to the meter.
Nothing would please me more than to move to another supply company, but it seems they are all as bad as one another! They need to take a good long look at themselves and their management systems...
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why is the price of diesel still high,when petrol was last at 90 odd pence a litre diesel was two pence a litre more now it's a least 10p.more,yet another rip off in rip off Britain.
regards John Jones
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i have been on a card meter since i was 17, now 31. and up until 2006 i was on card then put onto a key. i recieved a back dated bill for £428,which when questioned was told it was 5 years of backdated billing because they ever got round to put up my tarrif.i asked how this could happen , to be told that sometimes they dont always get round in time to change the tarrif when it goes up. well, ilaughed because it seemed they hadnt been ablt to get to me for 5years. i refuse to pay it and still recieve bills but refuse to pay them. id like to point out that im a single parent with 4 children and on benefits, and that i am currently paying £25-35 on akey meter, but they wont let me leave till THEIR debt is paid.!!!
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Northern Ireland Electricity (NIE) have increased trheir costs by 14% in July and a further 33% in October. Why do you not have a letter for this company along with the other company letters
[Note from Watchdog web team: Thank you for your comment. We are looking into your suggestion. Best regards, Mariam Abu-Hejleh, web team]
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It about time the goverment started dealing with the energy and oil companies.I know they make big money out of the taxes on the massive profits these companies are making,but it looks in the end they will have to pay it back,in TAX cuts.These guys are robbing everyone.There should be a national campain where everyone does something to protest about this robbery that is going on.The only thing they know is to hurt them where it hurts us, IN THIER POCKETS.
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I AM WITH SCOTISH POWER, I HAD A PRE PAY METER THE OLD CARDS YOU PUT IN, THEY WANTED TO REPLACE IT WITH A KEY METER, WHEN THEY TOOK THE CARD METER OUT I GOT A BILL FOR £400.00. IT TOOK ME MONTHS OF ARGUEING WITH THEM,THAT I COULD NOT OWE THEM THAT AND ABOUT 60 PHONE CALLS,EXPLAINING I PAY FOR MY ELECTRIC AS I USE IT, THEN THEY SAID THEY WOULD INVESTGATE MY BILL, A MONTH LATER THEY SAID IT WAS A MISTAKE ON THERE BEHALF AND I OWED NOTHING.I GOT AN AMENDED BILL, WATCH THIS COMPANY, NOW MY ELECTRIC IS VERY EXPENSIVE, BUT CHECK YOUR BILLS THEY COULD OFF BEEN £400.00 BETTER OFF THAT I DID NOT OWE .
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EDF CHARGES PER kWhs:
I FORGOT TO ADD TO THE RATES FOR GAS AND ELECTRICTY THAT EDF does not charges standing charges per day as some other suppliers do.
I MUST SAY THAT LOOKING FOR A CHEAPER SUPPLIER IS NOT EASY AS THE POWER COMPANIES WHICH OFFER LOWER RATE PER kWhs THEY CHARGE YOU MORE IN STANDING CHARGES.
Also I have noticed that the compare search engines WEB SITES do not tell you the exact rates for the different bands OF kWhs. SO I FEEL IS A TIME CONSUMING TO FIND ANOTHER SUPPLIER.
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I'm afraid that the effects of rise prices in the commodities are felt instantaneously and passed on to the customers just like petrol prices. The drop in prices does not normally come into effect for the customer either at all if a small reduction or if a large reduction could well be several (3) months afterwards and that will even be heldback if there are prices rises as a general trend.
It's how these companies operate and how capitalism works. Of course people have a choice of switching, but switching though is very easy, is a hassle or inconvenient so without this collective bargaining power from consumers the big 6 will always have a oligopoly and strangle hold over us because the demand is always there.
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british charge too much
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