Energy firms' profit margins soar
 

http://www.bbc.co.uk/news/business-15302723

That's one hell of a hike in price.I hadn't realised how bad it had got.

Re: Energy firms' profit margins soar
 

doesn't sound like much ,about 34p profit per day for dual fuel but when you take into concideration the number of customers ,in the case of my supplier npower about 6million that is a massive number even assuming only half the customers have a duel fuel contract .
I wonder if that figure is pre tax or after tax

Re: Energy firms' profit margins soar
 

But at the time they said the 18% rise in prices was essential!

Nice to know our extra outgoings are going to a good cause.

Re: Energy firms' profit margins soar
 

Yeah its call fat cat bonuses :mad:

Re: Energy firms' profit margins soar
 

Is the margin gross or net?

Re: Energy firms' profit margins soar
 

What company earns less then £125 per year per customer? Its 34p per day profit just seems a lot due to volume of customers.

I also know they have to invest billions into renewable energy which will cost billions to build the infrastructure; do you think the government is going to pay? Do you think the power companies will pay? No it will come from you and I from the cost of our energy.

:2cents:

Re: Energy firms' profit margins soar
 

The problem is the companies will not allow their profit margins to fall .When faced with rising materials costs most companies will try to absorb the extra cost rather than lose customers to competition ,they try to use the profit margin as a way of keeping retail prices down but with energy companies they are basically a monopoly or cartel with toothless regulation so no such competion exists

---------- Post added at 10:16 ---------- Previous post was at 10:08 ----------

34p per day profit is a huge profit margin given the volume of customers ,in fact if they are net profits they are grotesque .Any investments in renewable energy will be accounted for before the profits are announced and don't forget those investments will usually earn them money as well enough to ofset the initial investment untill it enters a profit

Re: Energy firms' profit margins soar
 

These figures are not actual profit, but predicted possible profit.:rolleyes:

How much profit they make depends on how much customers use, because of things like cold weather. The future weather would be completely unknown to them.:rolleyes: If it actually turns out to be warmer, then they would make less profit.

Re: Energy firms' profit margins soar
 

So much for Privatisation and pseudo competition.

Anyone with half a brain would know where it leads.

We are sooo screwed.

Re: Energy firms' profit margins soar
 

Yes l agree totally in that Privatisation was trumpeted as some great policy which would mean lower prices and better services but what have we got now and that is poorer services and sky high prices.

Re: Energy firms' profit margins soar
 

We know that energy prices won't be going down and we know that customers energy usage is fairly consistent so whilst it must be appreciated that the figures are an estimate and will most likely be lower than quoted it is still a massive number and highlights how vulnerable joe public is to profiteering from energy companies

Re: Energy firms' profit margins soar
 

How would them not being privatised necessarily led to lower prices? The cost of obtaining the fuel, inflation, wage inflation, 'climate change' taxes etc would still be there.

Re: Energy firms' profit margins soar
 

Nothing wrong with privatisation it is the fact that there is no competition .Basically there is a energy monopoly ,we have 5-6 big suppliers who all colaborate when it comes to prices which is why OFGEM need to grow some teeth and start snapping .The government however are in a bit of a pickle over this because they need the tax revenue rom companies such as these to balance the books and reducing their profits reduces the tax revenue

Re: Energy firms' profit margins soar
 

How is customer usage fairly consistent when it varies with the weather? If October turns out to be warmer than normal, customers will use less than normal and yet the companies still have to cover the costs that are not directly related to usage.

Re: Energy firms' profit margins soar
 

It may mean lower prices to the consumer but it would mean a much higher tax subsidy from the government if they where still state owned so either way the consumer loses under state ownership ,at least with private ownership the government and tax payer benefit from the tax revenue generated by these companies and if regulated properly there can be strong competition ,it would be even better if the government had a coherent energy policy that goes further than throwing the voters a bone come election time

---------- Post added at 12:26 ---------- Previous post was at 12:18 ----------

on a yearly basis and using my own bills as a example i would say they are pretty consistant