soaring fuel costs

[kamarastar]

Is the British Gas price hike justified?

No.

[hgrin]

No not at all. In fact wholesale prices are hardly related to the price they charge you and I. I think OFGEM are looking into it but given they have no teeth really it won't make much difference.

why isn't it? [hsmile]

Particularly amusing given recent moves to restrict pay rises or even take pay cuts to preserve jobs, never mind the pressure on benefits.

It isn't justified because it does not relect what energy actually costs.

British gas, announced bumper profits of £740million in February.

So how can it be justified

Thank you catgirl1976. Well, that makes me so angry. It is going to severely impact on me and my little fam. As a freelancer I haven't earned much this year; we mainly live off my DH wage - which isn't great. Our basic needs are just about met and this hike will eat into another of our basic needs such as food, clothing, travel

It is a disgrace. The main 6 conspire to put the prices up - they bascially act like a cartel so there isn't even a great deal of point swapping suppliers. I am sorry to hear if will impact you so much. It is worth shopping around although they all act together so you will not make huge savings. It is interesting that the government has asked Tesco and Asda to start supplying, which if it happens may bring prices down.

a blokey on tv the other day said the profit only meant £5 profit per household?

sounds odd to me.

No thats about right. If you reckon there is about 62 million people in UK - say 4 in a household thats about 155 million house holds, so yeah just under a fiver a household. Still doesnt justify what is blatant profiteering though

Sorry - no thats more like £50 a house. But my figures are probably wrong anyway.

Interesting about Asda and Tesco - hopefully that will help. Given the way things go they're most likely to join the cartel or just go slightly cheaper and turn over major profits just like the rest.

Well the Energy Minister has actually asked them both to start supplying with the express purpose of driving prices down so it could work. Although yes - I won't hold my breath!

Given the cost of living at the moment and the vast profits all energy companies are making there is definitely room to CUT energy prices.
This makes BG's decision totally unjustifiable.

Could we mumsnetters kickstart a campaign?

...how could we go about this?

They are fair as increased global demand for gas has increased and so prices have to rise.

Um - not with the Shale production in the USA. Most LPG import terminals have been converted to export.

windfall tax!

There may be 62million people but there arent 63millioin households and they dont supply to all of them and their profits were vastly more than 155 million.

Me, I will be bio composting my own poo, dont see how else I can afford to heat my house!

There is actually a huge glut of gas, it should be bloody cheap!

No global demand for gas has increased and will increase for the foreseeable future
www.telegraph.co.uk/finance/newsbysector/energy/8559909/Gas-glut-is-fading-as-global-demand-surges.html

Oh. What about the vast profit energy companies are making out of ordinary folk. How then is is justified?

It is in Europe but not in the US. The prices are rising but the link between the wholesale and retail prices are getting further and further apart and the markets are being artifically manipulated by specualtors and suppliers

They have to make profits, otherwise they'd go bust

Well yes of course, but you can't say the price hikes are justified given the enourmous profits they are already making and the disparity between the increases they are imposing and what the markets are doing.

Its difficult because due to globalisation there is increased demand for natural resources such as gas which is always going to push up the price of the resources as companies have to protect their bottom lines so its not a great surprise that gas prices rise sharply everyyear. Its simple and demand economics.