Time for big six energy companies to refund customers

[Mr Bloom]

As the title says. The banks have had to do it. With such huge increases in profits for the big six, nearly 400% - it's time OFGEM proved it's worth and the energy companies were made to refund customers.

 

 

http://www.theguardian.com/business/2014/mar/27/ofgem-competition-commission-big-six-watchdog-fuel-bills

[ivanava]

As the title says. The banks have had to do it. With such huge increases in profits for the big six, nearly 400% - it's time OFGEM proved it's worth and the energy companies were made to refund customers.

 

 

http://www.theguardian.com/business/2014/mar/27/ofgem-competition-commission-big-six-watchdog-fuel-bills

 

Ofgem said it found that 43% of customers distrusted energy companies to be clear and honest about prices and that suppliers' retail profits had risen to £1.1bn in 2012 from £233m in 2009.

 

26.4 million households in the UK

 

2009

£233,000,000 ÷ 26,400,000 =£8.83 profit per household.

 

2012

£1,100,000,000 ÷ 26,400,000 = £41.66 profit per household.

 

How much profit do you think they should make from each household?

How much are you expecting them to give you back?

[anywebsite]

That's still a very large increase in profits, ivanava. I think they should be able to make a reasonable ROI, but they're currently making pretty extraordinary margins, not what you'd expect in a competitive market... http://www.bbc.co.uk/news/business-26112330

[ivanava]

That's still a very large increase in profits, ivanava. I think they should be able to make a reasonable ROI, but they're currently making pretty extraordinary margins, not what you'd expect in a competitive market... http://www.bbc.co.uk/news/business-26112330

 

The question is, did their profits decrease after the 2008 and the companies took the lower profits to help people out. Many companies accepted lower profits after the crash and are just getting back to pre crash profits.

[anywebsite]

Centrica & SSE are making over 11%, Scottish Power not far behind & they had nothing like those losses in 2009, looks like it's the foreign firms taking the losses. Your questions are answered if you read the article I linked.

[ivanava]

Centrica & SSE are making over 11%, Scottish Power not far behind & they had nothing like those losses in 2009, looks like it's the foreign firms taking the losses. Your questions are answered if you read the article I linked.

 

EDF made a 4.1% loss on gas in 2012.

 

The table at the bottom of this link shows the profits for the main companies.

http://www.bbc.co.uk/news/business-26112330

 

And they don't appear to be excessive with some even making a loss in recent years.

[anywebsite]

Yes, the foreign firms, EDF, RWE & E.On still seem to be taking losses trying to break into the UK market, or have only recently started to break even since those stats, but Centrica, SSE & Scottish... the British ones with ex-public monopoly links seem to be making big profits & never taking any losses, or only small ones.

 

British Gas just keep helping themselves, they took no losses, profits hardly fell during the recession & they've been making silly money all the time. SSE & Scottish little better.

[ivanava]

Yes, the foreign firms, EDF, RWE & E.On still seem to be taking losses trying to break into the UK market, or have only recently started to break even since those stats, but Centrica, SSE & Scottish... the British ones with ex-public monopoly links seem to be making big profits & never taking any losses, or only small ones.

 

British Gas just keep helping themselves, they took no losses, profits hardly fell during the recession & they've been making silly money all the time. SSE & Scottish little better.

 

And anyone can choose to leave those companies and move to a company that makes less profit.

[I1L2T3]

Ofgem said it found that 43% of customers distrusted energy companies to be clear and honest about prices and that suppliers' retail profits had risen to £1.1bn in 2012 from £233m in 2009.

 

26.4 million households in the UK

 

2009

£233,000,000 ÷ 26,400,000 =£8.83 profit per household.

 

2012

£1,100,000,000 ÷ 26,400,000 = £41.66 profit per household.

 

How much profit do you think they should make from each household?

How much are you expecting them to give you back?

 

I think about a tenner per customer maximum. You have to remember that the £41 is multiplied by millions of customers. That's a lot. Too much.

 

---------- Post added 27-03-2014 at 10:44 ----------

 

And anyone can choose to leave those companies and move to a company that makes less profit.

 

A lot of people are doing exactly that.

[ivanava]

I think about a tenner per customer maximum. You have to remember that the £41 is multiplied by millions of customers. That's a lot. Too much.

 

---------- Post added 27-03-2014 at 10:44 ----------

 

 

A lot of people are doing exactly that.

 

I think that will disappoint many people, some will have been expecting hundreds of pounds back, also bare in mind that anything they give back will be tax deductible meaning less income for the government. It should also be a percentage of your spend back rather than a set amount, this means the poorest will get the least back because they spent the least.

 

 

So in the grand scheme of things, energy company profits aren't making the poor, poorer, and the tax's they pay on the profits they make will be going back to the poor in the form of benefits.