WasThatWise Posted July 26, 2012 Share Posted July 26, 2012 So Centrica/British Gas have made a profit again, that is what businesses are supposed to do and if they are paying the proper tax on them then that's how the world turns. The headlines and the hysteria that follow the announcement is always this may millions or x mount per day but the ROCE (return on capital employed) never seems to be mentioned which to me is a far better indication of profiteering than a meaningless amount of millions in a headline. Does anyone know what ROCE the current profits represent. Link to comment Share on other sites More sharing options...
Leah-Lacie Posted July 26, 2012 Share Posted July 26, 2012 I don't think people mind them turning a profit. It is business after all. What they do mind is when they announce a profit of £4b in a year, and then put their prices up by 10% Link to comment Share on other sites More sharing options...
top4718 Posted July 26, 2012 Share Posted July 26, 2012 Of course companies are there to make profit but when the profits are made by vastly increasing the cost of an essential commodity and making obscene amounts then it is morally wrong (as Mr Cameron would say). When heating fuel is unavailable or limited for a portion of the most needy then people are correct to protest. Link to comment Share on other sites More sharing options...
Rupert_Baehr Posted July 26, 2012 Share Posted July 26, 2012 How much heat do you get when you burn a £10 scratch card? Prices generally on Treasure Island are exorbitant, but there seems to be no shortage of people willing to pay large amounts of money for 'entertainment'. Link to comment Share on other sites More sharing options...
truman Posted July 26, 2012 Share Posted July 26, 2012 If BG's prices are too high you can always shop around for a cheaper deal... Link to comment Share on other sites More sharing options...
WasThatWise Posted July 26, 2012 Author Share Posted July 26, 2012 But that's my point if it's 4 bn on a 40 bn business then that's ten percent which I think would be quite a low profit margin, additionally I would like to know what impact say a ten percent cut in tarrif would have on the 4bn as I don't think all of the profit comes from domestic users. Link to comment Share on other sites More sharing options...
truman Posted July 26, 2012 Share Posted July 26, 2012 But that's my point if it's 4 bn on a 40 bn business then that's ten percent which I think would be quite a low profit margin, additionally I would like to know what impact say a ten percent cut in tarrif would have on the 4bn as I don't think all of the profit comes from domestic users. The 300 and odd million they've posted today is from the domestic side of BG I think... http://www.guardian.co.uk/money/2012/jul/26/british-gas-urged-cut-prices?newsfeed=true Link to comment Share on other sites More sharing options...
top4718 Posted July 26, 2012 Share Posted July 26, 2012 If BG's prices are too high you can always shop around for a cheaper deal... If you do try to shop around you'll find that most are charging the same exorbitant rates, if you go into debit with one and try to shop you're hit with the bill to pay off the account. Once a rise is announced they all follow suit with only marginal difference. The way the tariffs work are deliberately over complex. I remember years ago there being uproar when companies like BG announced price rises of 1.5%, nowadays 10 - 30% rises are the norm and happen on some occasions more than once per annum. Its corporate greed on a massive scale, with a small minority getting vastly rich while the majority lose out. Link to comment Share on other sites More sharing options...
truman Posted July 26, 2012 Share Posted July 26, 2012 If you do try to shop around you'll find that most are charging the same exorbitant rates, I'm sorry ,I have to disagree with you..I used to be a BG customer,got fed up with their prices,went onto Uswitch and saved over a third on my dual fuel bill... Link to comment Share on other sites More sharing options...
iansheff Posted July 26, 2012 Share Posted July 26, 2012 Centricas profit was £1.45bn. I don't believe utility companies should be privatised, especially when the parent companies are foreign. Link to comment Share on other sites More sharing options...
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