British Gas profits up 900%!
Discussion
British Gas: Anger as energy bill change leads to record profits https://www.bbc.co.uk/news/business-66315117
900% increase in profits for British Gas! No surprise there then!
900% increase in profits for British Gas! No surprise there then!
Not that long ago, the price cap mechanism meant that BG (and others) were compelled to provide energy to the consumer at a lower price than they were paying for it. Nobody complained when they were forced into trading at a loss.
Several energy companies (28 by some counts) went bust during that time, as they didn't have the financial strength to temporarily absorb the costs.
BG are simply clawing back the losses that were imposed on them.
Several energy companies (28 by some counts) went bust during that time, as they didn't have the financial strength to temporarily absorb the costs.
BG are simply clawing back the losses that were imposed on them.
Edited by Nigel_O on Friday 28th July 17:52
Nigel_O said:
Not that long ago, the price cap mechanism meant that BG (and others) were compelled to provide energy to the consumer at a lower price than they were paying for it. Nobody complained when they were forced into trading at a loss.
Several energy companies went bust at that time, as they didn't have the financial strength to temporarily absorb the costs.
BG are simply clawing back the losses that were imposed on them.
Which is exactly what the junior doctors and other workers want too.Several energy companies went bust at that time, as they didn't have the financial strength to temporarily absorb the costs.
BG are simply clawing back the losses that were imposed on them.
Wages have been stagnant for far longer then BG had to endure some losses - I guess I should add if they had any.
Edited by Oliver Hardy on Friday 28th July 18:05
Nigel_O said:
Not that long ago, the price cap mechanism meant that BG (and others) were compelled to provide energy to the consumer at a lower price than they were paying for it. Nobody complained when they were forced into trading at a loss.
Several energy companies (28 by some counts) went bust during that time, as they didn't have the financial strength to temporarily absorb the costs.
BG are simply clawing back the losses that were imposed on them.
That does not really account for how energy is generallu bought in advance. The companies going bang are the ones that could not afford to. others even made a ton of moneySeveral energy companies (28 by some counts) went bust during that time, as they didn't have the financial strength to temporarily absorb the costs.
BG are simply clawing back the losses that were imposed on them.
Edited by Nigel_O on Friday 28th July 17:52
Nigel_O said:
Not that long ago, the price cap mechanism meant that BG (and others) were compelled to provide energy to the consumer at a lower price than they were paying for it. Nobody complained when they were forced into trading at a loss.
Several energy companies (28 by some counts) went bust during that time, as they didn't have the financial strength to temporarily absorb the costs.
BG are simply clawing back the losses that were imposed on them.
This is basically it.... Several energy companies (28 by some counts) went bust during that time, as they didn't have the financial strength to temporarily absorb the costs.
BG are simply clawing back the losses that were imposed on them.
The way the price cap works didn't do a very good job of accounting for how energy was bought and so when prices went up a lot all the suppliers were losing money. Now the reverse is true and the prices have come down faster than the cap. At some point it will even itself out again.
The government (and public), can't have it both ways. We are in a strange situation whereby the government wants investment in infrastructure and competition to drive down prices, but everyone complains when businesses make big profits. Either you nationalise the lot and the taxpayer takes the risk, pays the investments and sets low prices, or you let the market and the people within that market do their job of making money.
BoRED S2upid said:
900% increase in profits for British Gas! No surprise there then!
Also, any percentage comparison means nothing on it's own. If they were making £20m a year pre-pandemic, made £1m last year and then £9m this year it's a 900% increase in profits, but still only 45% of what they would be making in any other year....
Oliver Hardy said:
Nigel_O said:
Not that long ago, the price cap mechanism meant that BG (and others) were compelled to provide energy to the consumer at a lower price than they were paying for it. Nobody complained when they were forced into trading at a loss.
Several energy companies went bust at that time, as they didn't have the financial strength to temporarily absorb the costs.
BG are simply clawing back the losses that were imposed on them.
Which is exactly what the junior doctors and other workers want too.Several energy companies went bust at that time, as they didn't have the financial strength to temporarily absorb the costs.
BG are simply clawing back the losses that were imposed on them.
Wages have been stagnant for far longer then BG had to endure some losses - I guess I should add if they had any.
Edited by Oliver Hardy on Friday 28th July 18:05
BoRED S2upid said:
British Gas: Anger as energy bill change leads to record profits https://www.bbc.co.uk/news/business-66315117
900% increase in profits for British Gas! No surprise there then!
So whats the thread about ? 900% increase in profits for British Gas! No surprise there then!
Condi said:
Nigel_O said:
Not that long ago, the price cap mechanism meant that BG (and others) were compelled to provide energy to the consumer at a lower price than they were paying for it. Nobody complained when they were forced into trading at a loss.
Several energy companies (28 by some counts) went bust during that time, as they didn't have the financial strength to temporarily absorb the costs.
BG are simply clawing back the losses that were imposed on them.
This is basically it.... Several energy companies (28 by some counts) went bust during that time, as they didn't have the financial strength to temporarily absorb the costs.
BG are simply clawing back the losses that were imposed on them.
The way the price cap works didn't do a very good job of accounting for how energy was bought and so when prices went up a lot all the suppliers were losing money. Now the reverse is true and the prices have come down faster than the cap. At some point it will even itself out again.
The government (and public), can't have it both ways. We are in a strange situation whereby the government wants investment in infrastructure and competition to drive down prices, but everyone complains when businesses make big profits. Either you nationalise the lot and the taxpayer takes the risk, pays the investments and sets low prices, or you let the market and the people within that market do their job of making money.
Condi said:
Niponeoff said:
I don't mind if companies make money and distribute it to their employees evenly and fairly. Rather than a new yacht for the person at the top.
And if the company makes a loss do the employees take a pay cut? Again, you can't have it both ways.
Condi said:
Niponeoff said:
I don't mind if companies make money and distribute it to their employees evenly and fairly. Rather than a new yacht for the person at the top.
And if the company makes a loss do the employees take a pay cut? Again, you can't have it both ways.
Didn't some of the top brass in the banks still get bonuses during the financial crisis?
Donbot said:
Weren't they losing a load of money due to the massive increase in supplier costs?
Nope centrica have made billion pound profits for the past few years 2020 £2bn 21 -2bn 22 5bn. Yes they make money through other things than just British Gas but the price cap is obviously in their favour not ours. BoRED S2upid said:
Yes they make money through other things than just British Gas but the price cap is obviously in their favour not ours.
So much in their favour that half the suppliers in the market went bust? Or is it so "obviously" in their favour that you don't even need to provide any evidence for your assertion? Centria are a global company with interest in lots of different things, the majority of their profits over the last few years have not come from domestic consumers, but from their gas storage and trading, and their 20% ownership of the nuclear fleet.
I've just switched away from British Gas and have received my refund for the £1200+ I was in credit by. Yes, you did read that correctly. This was despite me continually trying to reduce my DD amount and "applying" for refunds of some of the credit whilst a customer.
I wonder how much of their profit is helping themselves to interest-free loans out of customer's pockets and stoozing it?
I wonder how much of their profit is helping themselves to interest-free loans out of customer's pockets and stoozing it?
Edited by Clockwork Cupcake on Saturday 29th July 13:44
Condi said:
BoRED S2upid said:
900% increase in profits for British Gas! No surprise there then!
Also, any percentage comparison means nothing on it's own. If they were making £20m a year pre-pandemic, made £1m last year and then £9m this year it's a 900% increase in profits, but still only 45% of what they would be making in any other year....
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