The energy crisis

[tweetiepooh]

It seems daft to me that the country gets left with the bill (and ultimately the citizens) if energy companies go bust. Certainly the supply needs to be maintained but it should be treated similarly to any other company going broke. If you are owed money then you join the line of creditors and wait your turn. If you owe money then the administrators will work out payment.
I mean if you took the risk of low bills with some company you should accept the risk and not just the benefits. Those who chose to pay more to a "stable" supplier should now not have to cover the costs of those who didn't and maybe even benefit from smaller price rises.

[1andrew1]

Originally Posted by tweetiepooh

It seems daft to me that the country gets left with the bill (and ultimately the citizens) if energy companies go bust. Certainly the supply needs to be maintained but it should be treated similarly to any other company going broke. If you are owed money then you join the line of creditors and wait your turn. If you owe money then the administrators will work out payment.
I mean if you took the risk of low bills with some company you should accept the risk and not just the benefits. Those who chose to pay more to a "stable" supplier should now not have to cover the costs of those who didn't and maybe even benefit from smaller price rises.

I think it's keeping the supply going that means the state has to intervene. The trouble is that regulation was too light-touch enabling lots of poorly-backed companies to set up.
In the case of Bulb, the company became too big to fail as no companies wanted to take on its customers.

[Sephiroth]

In my capacity as a pragmatic (really) Conservative, I can't for the life of me defend the privatisation of the energy industry under present rules.

I can see why Thatcher did it - to raise cash for debt repayment and her Guvmin's projects. But 40 years on, crisis meets a private company's obligations to its shareholders. The profits at this time of the underlying providers (rather than the Alt-energies) are excessive and are being paid by us. That's wrong.

https://www.theguardian.com/business...-cause-outrage

Soaring profits at two of the UK’s biggest energy companies have been described as an “insult” to millions of people struggling amid the cost of living crisis, with high oil and gas prices funding multibillion-pound rewards for their shareholders.

A day after households were warned average annual energy bills could hit £3,850 from January, triple the level at the beginning of this year, Shell and Centrica sparked outrage by announcing huge windfalls.

Shell posted record earnings of $11.4bn (nearly £10bn) for the three-month period from April to June and promised to give shareholders payouts worth £6.5bn.

Asked about the stark contrast with punishingly high bills faced by households already struggling amid sky-high inflation, Shell’s chief executive, Ben van Beurden, said the company could not “perform miracles” to bring oil and gas prices down, adding: “It is what it is.”

At the same time, Centrica, the owner of British Gas, reinstated its dividend, handing investors £59m, after reporting operating profits of £1.3bn during the first half of 2022.

[nomadking]

Originally Posted by sephiroth

in my capacity as a pragmatic (really) conservative, i can't for the life of me defend the privatisation of the energy industry under present rules.

I can see why thatcher did it - to raise cash for debt repayment and her guvmin's projects. But 40 years on, crisis meets a private company's obligations to its shareholders. The profits at this time of the underlying providers (rather than the alt-energies) are excessive and are being paid by us. That's wrong.

https://www.theguardian.com/business...-cause-outrage

they are not the suppliers. They also operate outside of the uk. That is where the profits are earned.

[Sephiroth]

Originally Posted by nomadking

they are not the suppliers. They also operate outside of the uk. That is where the profits are earned.

Centrica owns gas fields and part of UK's nuclear energy. Crucially it also owns British Gas to whom the supply. Centrica thus controls the entire chain for the benefit of its shareholders.

That's not good.

[RichardCoulter]

I own shares in Centrica and even I think it's wrong. I'm not interested in earning money off the backs of poor people who can no longer keep warm.

[Julian]

Originally Posted by RichardCoulter

I own shares in Centrica and even I think it's wrong. I'm not interested in earning money off the backs of poor people who can no longer keep warm.

Are you getting rid of your shares then?

Bulb have credited the EBSS for Dec, from this month its £1 more (£67).

---------- Post added at 23:43 ---------- Previous post was at 23:40 ----------

It also looks like we'll be moving to Octopus just before Christmas.

Update: 30 November 2022

Today, the court approved the timing for the "Energy Transfer Scheme" (ETS). The court has said that this can take effect shortly before midnight on Tuesday 20th December 2022 at which point Bulb’s business will be owned by Octopus Energy.

[RichardCoulter]

Originally Posted by Julian

Are you getting rid of your shares then?

I can't for various reasons, but I shall continue to donate money to charitable causes each and every month to help those less fortunate than myself as all decent people should do if they are in a position to do so.

Originally Posted by Paul

Bulb have credited the EBSS for Dec, from this month its £1 more (£67).

---------- Post added at 23:43 ---------- Previous post was at 23:40 ----------

It also looks like we'll be moving to Octopus just before Christmas.

Once Bulb is fully owned by Octopus it will take them months to migrate everyone to Octopus systems and tariffs. You’re unlikely to see any practical difference to your account management until well into next year.

[daveeb]

Originally Posted by Paul

Bulb have credited the EBSS for Dec, from this month its £1 more (£67).

---------- Post added at 23:43 ---------- Previous post was at 23:40 ----------

It also looks like we'll be moving to Octopus just before Christmas.

Octopus are a pretty good company IMO, never had any problems with them after 4 or so years and easy to contact.

[SnoopZ]

I've always been really happy with Bulb so I hope Octopus are the same.

[Jaymoss]

Originally Posted by SnoopZ

I've always been really happy with Bulb so I hope Octopus are the same.

Better website for a start

Originally Posted by SnoopZ

I've always been really happy with Bulb so I hope Octopus are the same.

According to their tarrifs page, they are more expensive.

[Chrysalis]

Originally Posted by tweetiepooh

It seems daft to me that the country gets left with the bill (and ultimately the citizens) if energy companies go bust. Certainly the supply needs to be maintained but it should be treated similarly to any other company going broke. If you are owed money then you join the line of creditors and wait your turn. If you owe money then the administrators will work out payment.
I mean if you took the risk of low bills with some company you should accept the risk and not just the benefits. Those who chose to pay more to a "stable" supplier should now not have to cover the costs of those who didn't and maybe even benefit from smaller price rises.

Ofgem were going to ring fence credit balances, but have sadly now backed out of it.

Seems they didnt learn from last year's events.