Ed vs the energy companies

[Mr Jinx]

Now, I'm no big fan of the guy as you know. Neither am I one for meddling with the free market. But, all credit to Milliband for sticking up the Energy Companies and rubbishing their empty and pathetic threats of blackouts and the like.

Banks have been the taget of many people's bile over the last 5 years but someone really needs to put a spotlight on these Energry companies (who are all in collusion and cynical in the extreme) along with supermarket chains and other large online retailers.

What are others thoughts? Has this latest price freeze promise won you back to Labour?

 

[Bittners a Legend]

I've been amused watching Angela Knight and the Big 6 throwing their dummies out of the pram. It was a decent speech for Miliband but between now and 2015 they are going to have to put a lot more meat on the bone. If he is going to stand up and question the endless profits companies make at the expense of the tax payer then I applaud him.

 

[Jason H]

So, which of these doomsday scenarios will this lead to?

a) The energy companies, realising Ed is about to win the election, hike up their prices 40% in anticipation of the freeze.
b) The energy companies, on being told their prices are frozen, reduce supply leading to blackouts (see California).
c) The wholesale price rises significantly, leading Ed to have to placate the energy companies by compensating them or allowing them to raise prices. Look what happened when the Ukraine refused to pay up...
d) The wholesale price drops significantly, but hey the prices are frozen so we're quids in thankyou very much, say the energy companies.
e) It's a roaring success and everyone's happy.

 

[tavyred]

Good policy this, the cost of living crisis as portrayed by Labour could have real traction come 2015.
That said, Ed only needs 35% of the vote to form a government and could still have the fall back position of becoming PM in a coalition with the Libdems on less than 35% of the vote.

 

[Grecian2K]

So, which of these doomsday scenarios will this lead to?

a) The energy companies, realising Ed is about to win the election, hike up their prices 40% in anticipation of the freeze.
b) The energy companies, on being told their prices are frozen, reduce supply leading to blackouts (see California).
c) The wholesale price rises significantly, leading Ed to have to placate the energy companies by compensating them or allowing them to raise prices. Look what happened when the Ukraine refused to pay up...
d) The wholesale price drops significantly, but hey the prices are frozen so we're quids in thankyou very much, say the energy companies.
e) It's a roaring success and everyone's happy.

a) Aren't we supposed to have a 'regulator' to step in and veto such extortion.
b) I would imagine that such blackmail tactics would see the 'big 6' blown out of the water once and for all
c) & d) Surely the opposite sides of the 'risk' coin. Perhaps if the sellers, rather than we buyers' were the ones exposed the these risks the (highly dubious!) 'wholesale markets' might finally become a little less opaque?
e) I, 4-1, sincerely hope it is.

Consider the following
Current annual increase of earnings 1.4%
Current annual rise of CPI 2.7%
Reported imminent hike in energy prices 8%! (Just the latest in a long line of ingpflation busting rises colluded on by the energy corps)

Just these FACTS alone suggest the industry to be badly in need of COMPULSION rather than feather-light 'regulation'

And, to finally add insult to injury, given the foreign ownership of what were once OUR utilities, a significant proportion of these ill-gotten gains are then expatriated to the foreign masters.

 

[Grecian2K]

Meanwhile, Gideon's over in Brussels, fighting tooth and claw to defend the biggest possible bonuses for his banker cronies.

Nice to see the Government is looking after its own.

 

[grecIAN Harris]

Gas and electric prices need reigning in but the quickest and easiest way to get the cost of living back down is to reduce fuel duty significantly. Reduce cost, increase spending power, increase demand, create more jobs, reduce unemployment and so on and so forth in an ever increasing circle.

 

[Shabba]

Npower and EON are offering price freezes until 2017 and Scottish Power are offering it for 3 years. The best thing anyone can do, is check these deals out and signed up before the prices go up in the next couple month.

 

[Grecian2K]

Gas and electric prices need reigning in but the quickest and easiest way to get the cost of living back down is to reduce fuel duty significantly. Reduce cost, increase spending power, increase demand, create more jobs, reduce unemployment and so on and so forth in an ever increasing circle.

That would be a valid argument Ian were it not for the probability (as when tried in the past) that any 'savings' would immediately be swallowed up by the similar (and longer established) oil cartels under the same wonderfully convenient guise of those miasmic 'wholesale markets'.

The only brake on road fuel extortion currently seems to be the competition between the various supermarkets, though I fear that even this may likely be an ephemeral situation.

 

[tavyred]

And, to finally add insult to injury, given the foreign ownership of what were once OUR utilities, a significant proportion of these ill-gotten gains are then expatriated to the foreign masters.

Too true!
No comment from EDF yet, a French owned company that some say are able offset the price fixing in the French energy industry by ripping off UK customers.