We know that the on line retailers ( most of them chancers ) are suffering and many have gone under. Only one , Bulb because it was so large has been bailed out, or “allowed to continue “ by the govt. I know that the producers, Shell , BP make the mega profits, the trendy suppliers with names eg Octopus have had their fingers burnt. I may be doing the public a disservice but there is not a lot of media attention to differentiate between the massive mogul producers , who are making fortunes and the fly by night suppliers who are going bust. Petrol stations namely Shell where I live are still charging 12p per litre more than others in the area. I am at a loss to understand why the producers avoid a windfall tax because the government think that doing so will prevent them investing in the future. They would need to do this anyway, all , or most of the massive unforeseen profits are destined to go in dividends not infrastructure unless essential. Same as water companies, won’t invest in water retention ( reservoirs) better to sell the the land off for development .. What a depressing mess .
the butcher has said that the increase in rate has been from 13p/kw to 65p/kw in 18 months, thats five times what it was then. after wages utilities are generally one of the higher overheads in a business like this. such a rate of increase has probably wiped out all profits. A couple of years ago did some work in a retail company within the property team and I was surprised at after overheads how low the profit margins were, so to me its easy to see why they are packing in.
So many shops,pubs and small businesses will not cope.. Government may well have to step in to prevent an economy collapse
I work in an industry made up of small businesses, so very aware of the issues. Not sure where the money will come from to provide the level of support needed. Probably worse than covid.
Probably going up to help pay back all that bloody furlong money… There is still plenty of oil in the ground for humanity for thousands of years,apparently. The sun will get us first with a massive flare,before the oil runs out. That’s why it’s getting hotter…ask David Bellamy.. Probably…who knows…?
Help for households is a sticking plaster. Sorting out the reason for the price hike is the main issue, and don't be fooled by Ukraine, this was happening before that started.
https://www.ofgem.gov.uk/check-if-energy-price-cap-affects-you Here’s the price cap rates. Ignore the £3,500 headline, this is the info you might need. Brace. Brace.
They won't though. An economic collapse benefits people with the financial education necessary to make lemonade out of lemons. These kind of people just see it as an opportunity to get richer. And because the people that make up the government are generally these kinds of people (private school, heavily connected with the movers and shakers), they have the means, motive and now the opportunity. It's a massive conflict of interest.
Why can’t the government do something about the massive profits the energy companies are making? Is it because they are mainly French owned. I suppose brexit & the fact the French just don’t like the English could have something to do with it.
Interesting, I thought I would go and check what I might be paying in a winter month. Assuming my energy provider goes to the cap then I will be paying 3.3 times what I did to heat the house last December/January. We will survive through serious cuts to other costs, anyone want to buy a camper van? I haven't shown the numbers to Mrs Pickles yet, I think she's going to have a heart attack. note: it's 3 times higher as before April the cap was lower.
To be honest on an individual basis the VAT on utilities at 5% is a minor issue. No doubt the government benefits on a cumulative basis, but for an individual consumer its going to be heating your home that becomes the massive issue. I guess a lot more people might go back to working from their employers office this winter.
I used to do work for a timber frame company. The guy who owned it tried to squeeze the price bit by bit. I went to a site meeting with him and on the way out he asked me if the lads were crying enough about the prices. Didn't take long to stop working for them. Problem with utilities, where else are you going to go. This is the main reason they should never have been put into private hands.
I don't beleive governments can do anything. Energy prices are dictated by world markets. Unless a country buy a huge amount of gaz/petrol/electricity to have fixed prices for weeks/months, they can't do anything. Even if a country took back electricity/gas distribution network, they would only save a small bit on that, if they can. Business that are making boat loads of money right now, are the ones who own energy ressources. I sell fuel oil and diesel. I don't make one more € than usual, everything is more expensive and my profit margins depends on how much I buy my products, so higlhy fluctuents at the moment. Exxon, Total, Eni on the other hand, are making huge profits.
Ok so I admit that I’m no rocket scientist. But the bit I don’t understand is that we mainly make electricity from gas in this country and we have massive gas fields in the North Sea. So surely as a nation the massive rises in gas prices should affect us as much?
