Energy prices web report - Christmas update
As wholesale gas and crude oil prices fall even further, the big six energy companies are coming under renewed pressure to lower what they charge all of us for our gas and electricity.
The Government met with the energy companies in early December to press them again about dropping their prices. British Gas said that it would be unable to lower prices until at least spring 2009 because it was locked into bulk gas contracts.
Yet Scottish & Southern Energy, Britain's second biggest energy company, suggested in November that it could lower prices early next year if wholesale energy prices remained low.
Gas and electricity companies in Northern Ireland, more heavily regulated for their domestic charging than in the rest of the UK, announced last week that they were dropping their prices. Average electricity bills in Northern Ireland will drop by almost 11 per cent from January; average gas bills will drop by over 22 per cent.
We again asked the big six energy companies when they would lower their prices. Here are their responses:
British Gas
"While wholesale prices are still high, they are falling; if that continues, we are hopeful we'll be able to reduce energy prices for our customers next spring."
EDF Energy
"During these difficult economic times, those working at EDF Energy appreciate the financial difficulties many people are experiencing. We are reviewing our prices and monitoring the wholesale market on a daily basis. We ask customers to understand that in order to ensure supply to them at relatively stable prices we buy our energy supplies many months in advance. This move does not preclude further price reductions in future course.
"In the interests of responsible pricing over time rather than short-term tactics, EDF Energy has increased its dual fuel prices, which most customers choose, by less than any other major energy company since January 2006."
E.on
"We hope to reduce prices for customers as soon as we are able next year, as long as wholesale electricity and gas prices continue to fall."
npower
"If we see a significant decrease in wholesale prices across the winter and this is sustained, then we will be keen to reduce our prices. Wholesale prices certainly have begun to move downwards but wholesale gas is still nearly twice as expensive as it was two years ago."
Scottish Power
"We understand that there are difficult times and we are monitoring the position of the wholesale market closely. If we continue to see a sustained drop in wholesale energy costs then we will reduce prices as soon as we're able."
Scottish Power also announced the launch of a new social tariff available to the company's most vulnerable customers - that will offer annual savings of up to £211. Available from January 2009 the social tariff will be open to customers who are aged 60 or above and in receipt of a social welfare benefit.
Scottish & Southern Energy
"Scottish & Southern Energy has had and continues to have a responsible pricing policy, seeking to delay for as long as possible any increases in prices and seeking to implement as quickly as possible any reductions. Scottish and Southern Energy was the first energy supplier to say that it was optimistic of being able to deliver a price reduction early in 2009, if there was a sustained drop in wholesale prices, and we continue to be optimistic that this will be the case."
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British Gas were quick enough to hike their prices when it really was not warranted. My weekly payments rose from £21 a week to £48 a week, money I can ill afford to pay. They said it would be cheaper to pay online - I opened an account online to pay sums of money into my account. I received an email and a letter from British Gas informing me that the weekly payments online would be £55!!!
British Gas are simply ripping me off.
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Why the obsession over short-termism? These companies need to be investing *heavily* in new generating capacity. Don't expect the low wholesale prices to continue for long; more renewables capacity is needed *now* in order to avoid price shocks in the medium to long term.
Although there may be some correlation between oil and gas prices, they *are* different products, in different markets, being stored, transported and used differently. A change in the price of one commodity does not necessarily imply the other will follow suit.
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My gas direct debit is to be increased by an alarming 64%. I would like to know how British Gas justify such a hefty increase.
Based on the last year's usage, as they have done, I calculate it should be no more than 30%, at current prices.
It seems there is an intention to increase prices again within the next few months and/or they are profiteering at the consumers' expense before being compelled to reduce prices
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When are the government going to do something about these greedy energy companies? Surely at the very least an investigation into price-fixing might cause some leverage to force them to drop their prices now. They are dragging their feet until winter is over and we've all had to heat our homes whilst paying top dollar.
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I, too, am disgusted at the fact that 'our' Government is turning a blind eye to the public being held hostage to fatcat fuel providers!
Aren't Ministers put into power to LISTEN to the British public, and ACT in our best interests?
Don't we give THEM a SALARY commensurate with THEM speaking on OUR behalf?
Are they not PAID by US to address, and protect US from, exactly THIS kind of blatant profiteering and abuse?
Hubby and I are currently tied to EDF. We received a letter in September, telling us that they wanted to take our gas payment from £27.00pm to £140.00!
That's a rise of over 400%!!!
We have now agreed on £55.00pm, which is still a rise of more than 100%!
We are not happy about it, but what choice do we have?
Our electric is due next month, and I dread to think how much they will try to con out of us with that...!
As Gagnoa states above, it is a blatant play to force us to pay 'top dollar' during the winter months, a winter, one must add, that is being touted a one of the coldest for many years!
These vampires currently have us ALL over a barrel, and no-one in Government seems to give a damn about it...!
Elections are a waste of space! If WE, the British Public ACTUALLY had the ability to INSTANTLY sack the idiots in power, (like all OTHER employers do!) those in Government would SOON sit up and pay attention to US, AND our demands!
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i have been on a prepayment meter for 15 years and i have never paid more than 20 pounds a week for my gas, but for the last 6 months it has cost me more thanb 70 pounds a week and thats only having heating on for 2 hrs a day to heat water and house, ionly earn £150 a week and am become more and more in debt. so much so that i now have a court summons for my council tax, dont even get me started on that.
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