Does Ofgem have the power to force suppliers to sell at a loss?
How about they stop all payments to shareholders as the first step
Fucking good. Ridiculous that these groups are taking more action the the goddam fucking government
Worth a try I guess
Oh great. Another vanity project that will go nowhere and line Jolyon’s pockets.
they don’t really know what they are talking about. the cap allows for something like 2% profit. even if it’s set at 0, it’s not going to make a dent to the rise in the wholesale cost and thus the customer’s bill.
much like asking for 20% pay rise or 50% minimum wage increase. not really going to do a thing aside from shutting down businesses as prices will rise all round. are they asking for pay cut and minimum wage decrease when energy cost drop?
this thing needs to be tackled somehow at source… the cost of wholesale energy. no idea how though.
Didn’t I see on Twitter that this guy has lost the vast majority of his cases? Can’t remember the exact figure and don’t want to make it up but it was very high.
This is dumb. It’s not Ofgem’s fault that energy is expensive.
The people to blame are the Labour and Tory governments that went along with the green insanity.
Ffs it’s not the suppliers that are the problem – the cap just guarantees them 2% profit (which is more than what we’d pay were energy nationalised, but hey ho). The issue is the demand for fuel allowing *producers* to sell for huge amounts – not clawing this sudden, unexpected, and unplanned for profit back with windfall taxes is an abject failure of government
More hopeless time wasting from Jolyon’s Jollies.
The kind of impact assessment they’re claiming is required before updating the cap obviously doesn’t apply to what is more or less a mechanical update of the prices.
It does apply to the methodology update from 3 months to 6 months but err… they did do one.
Isn’t this is the equivalent of sueing Tesco about Heinz beans prices (if Tesco were capped on selling beans at 2% profit)
They’d be better off trying for something more specific, like lowering the standing charges to their previous levels to help take a bit off the bill rather than trying to force the suppliers to sell at a loss
But here in lies the fallacy of green energy. Any cheap energy provided will be sold off and exported at market rates making more profit for the CEOs not to make our bills cheaper
The electricity suppliers are not necessarily the enemy, and neither are the electricity generators. The problem is the cost of gas from the producers. If the generators are paying over the odds for the gas to drive the turbines that generate the electricity, then they have to price their product accordingly. And likewise, the suppliers have to purchase the electricity from the generators at this over-inflated price to sell on to their customers. If the suppliers are limited to 2% profit, and the generators have a similar restriction (don’t know if they do or not), then neither one can really be blamed for the base price of the ‘raw material’ (gas) as that is out of their control.
Regardless, the whole situation is becoming completely untenable.
I know one thing about this case, the lawyers and barristers won’t be worrying about paying their energy bills.
Imagine if all industries were like the legal industry in being able to magically produce demand for their own services.
17 comments
Good. Hope it helps.
Does Ofgem have the power to force suppliers to sell at a loss?
How about they stop all payments to shareholders as the first step
Fucking good. Ridiculous that these groups are taking more action the the goddam fucking government
Worth a try I guess
Oh great. Another vanity project that will go nowhere and line Jolyon’s pockets.
they don’t really know what they are talking about. the cap allows for something like 2% profit. even if it’s set at 0, it’s not going to make a dent to the rise in the wholesale cost and thus the customer’s bill.
much like asking for 20% pay rise or 50% minimum wage increase. not really going to do a thing aside from shutting down businesses as prices will rise all round. are they asking for pay cut and minimum wage decrease when energy cost drop?
this thing needs to be tackled somehow at source… the cost of wholesale energy. no idea how though.
Didn’t I see on Twitter that this guy has lost the vast majority of his cases? Can’t remember the exact figure and don’t want to make it up but it was very high.
This is dumb. It’s not Ofgem’s fault that energy is expensive.
The people to blame are the Labour and Tory governments that went along with the green insanity.
Ffs it’s not the suppliers that are the problem – the cap just guarantees them 2% profit (which is more than what we’d pay were energy nationalised, but hey ho). The issue is the demand for fuel allowing *producers* to sell for huge amounts – not clawing this sudden, unexpected, and unplanned for profit back with windfall taxes is an abject failure of government
More hopeless time wasting from Jolyon’s Jollies.
The kind of impact assessment they’re claiming is required before updating the cap obviously doesn’t apply to what is more or less a mechanical update of the prices.
It does apply to the methodology update from 3 months to 6 months but err… they did do one.
Isn’t this is the equivalent of sueing Tesco about Heinz beans prices (if Tesco were capped on selling beans at 2% profit)
They’d be better off trying for something more specific, like lowering the standing charges to their previous levels to help take a bit off the bill rather than trying to force the suppliers to sell at a loss
But here in lies the fallacy of green energy. Any cheap energy provided will be sold off and exported at market rates making more profit for the CEOs not to make our bills cheaper
The electricity suppliers are not necessarily the enemy, and neither are the electricity generators. The problem is the cost of gas from the producers. If the generators are paying over the odds for the gas to drive the turbines that generate the electricity, then they have to price their product accordingly. And likewise, the suppliers have to purchase the electricity from the generators at this over-inflated price to sell on to their customers. If the suppliers are limited to 2% profit, and the generators have a similar restriction (don’t know if they do or not), then neither one can really be blamed for the base price of the ‘raw material’ (gas) as that is out of their control.
Regardless, the whole situation is becoming completely untenable.
I know one thing about this case, the lawyers and barristers won’t be worrying about paying their energy bills.
Imagine if all industries were like the legal industry in being able to magically produce demand for their own services.