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They aren't rinsing profits. Out of the £1700 average annual bill, supplier profits are £43...this is significantly higher than has been the case normally beca
by skippyboxedhero 2y ago
They aren't rinsing profits.
Out of the £1700 average annual bill, supplier profits are £43...this is significantly higher than has been the case normally because of the volatility in energy prices. This return is also controlled by the regulator.
For scale, the cost of government subsidies is £183.
Predictably the first thing the incoming government did was: announce massive new subsidies, and create a state-owned energy company.
Network costs have also gone up because of the well-known problems with performing work on any kind of infrastructure in the UK.
The politics are part of the reason why costs are so high. We constantly rotate through insane policies that relate to the fever dreams of a lawyer. The reason why prices are high is because we have policies in place to increase prices. Companies are not making big profits (again, their returns are controlled by the regulators). Look at share prices, collapsing in the sector (unless they are getting government money).
- IshKebab 2y agoYou're mixing up two things. Suppliers (middlemen) aren't making any profit because the government has capped prices. They literally can't. But even when they could they didn't make that much profit because there's pretty good competition between them because consumers can choose. The issue with suppliers is they are spending a ton of money dealing with complexity that shouldn't exist, so even though they aren't making a profit they're costing you unnecessarily. The people who are making a profit are DNOs. Totally different thing.