Would the power companies dare put prices up again?

[barney15c]

Fortunately so far the winter is relatively mild compared to previous years, so i am resisitng putting on the gas central heating until it is absolutely necessary as money is getting increasingly tighter. I am not alone in this as i have heard of many people doing the same thing. If the mild spell continues and enough people cut down its going to make a marked difference to the bottom line of a lot of energy providers. My question is would the companies 'dare' to increase their prices again to plug the gap, or would it be economic suicide. My personal opinion is that these companies are not beyond anything so some underhand way to increase revenue would not suprise me. Your thoughts please

[dzug2]

Well it might well be economic suicide for them NOT to increase prices if they start losing money on a sufficient scale

[Old_Geezer]

No one can say for sure but many have decided they have extracted the Michael enough for one year and say they don't intend to up the price again until next year. Which isn't so far away of course.

[pastafreak]

I just read the other day,that because of the mild weather so far, the gas companies actually have a big reserve-more than had been expected. But will they *reduce* prices? Don't hold your breath.

[pastafreak]

Oh...and one of them -Scottish and Southern I think-was committed to not raising prices til next year

[sherrardk]

That's good news Pasta, pretty sure I am with them.

[David H]

To answer the question you have to look at the conditions. Ofgem, unlike their French and German counterparts, do not cap prices. There is no upper price limit in Britain which is why the French and Germans bought our power companies so they can charge what they like here as they aren't allowed in their own countries.

On top of that the EU make our government make a 10% or more green tax on all bills to subsidise wind and solar power which wouldn't sell in an open market as it costs many times more and only produce power occasionally. Every single condition underlying the price is rigged to make them rise indefinitely with no restrictions and as all three major parties both impose green taxes and will not regulate prices then it will continue as long as people keep voting them in. it's your choice at the next election.

[johnk]

I don't think there is any ''dare'' about it, they just do as they please.