Observer II Posted July 28, 2022 Report Share Posted July 28, 2022 Gas suppliers have just announced record profits - why is the regulator allowing it ? Quote Link to comment Share on other sites More sharing options...
Confused52 Posted July 28, 2022 Report Share Posted July 28, 2022 4 hours ago, Observer II said: Gas suppliers have just announced record profits - why is the regulator allowing it ? Because the regulator, Ofgem controls the retailers and regulates the retail price of gas. It does not control the wholesale price charged by producers of gas and it is those companies that have made record profits. The retail arms are running at a loss because the whole price has gone up. For companies owned by a gas producer that does not mean insolvency. Those not owned by gas producers and wholesalers have gone out of business. The windfall tax falls on the producers and is paid to consumers. It would not be legal to deliberately run the retail companies at a loss and I suspect that is why it seems so convoluted. The windfall tax cannot pays for all the increase as some of the gas is produced by non-UK producers such as Norway and Qatar. Fracking would have helped but the greens haven't. Quote Link to comment Share on other sites More sharing options...
Confused52 Posted July 29, 2022 Report Share Posted July 29, 2022 The energy producers with operations onshore or on the UK continental shelf will be taxed on their profits at 40% until May 22 when it goes up to 65% until May 2026. Quote Link to comment Share on other sites More sharing options...
Observer II Posted July 30, 2022 Author Report Share Posted July 30, 2022 Sounds like an argument for Nationalisation then. Meanwhile, gas companies are abusing the direct debit system and cleaning out the most vulnerable customers. 😠 Quote Link to comment Share on other sites More sharing options...
ninearches Posted August 2, 2022 Report Share Posted August 2, 2022 BP have announced £7 billion+ profit in 3 months . As you say Obs ,get these companies renationalised & use the profits instead of taxing the population. Quote Link to comment Share on other sites More sharing options...
Observer II Posted August 2, 2022 Author Report Share Posted August 2, 2022 There's no light at he end of the tunnel either - we owe this situation to our politicians, who dove in with both feet to inflict economic sanctions on Russia, thinking it would cripple their economy. In fact the blowback from these sanctions has crippled Western economies, bringing the fuel shortages and inflation we are experiencing. A lesson, if one was needed, of the risks of globalism and economic inter-dependency. 😠 1 Quote Link to comment Share on other sites More sharing options...
Observer II Posted August 9, 2022 Author Report Share Posted August 9, 2022 With Boris now AWOL and apparently no one in charge, certainly no preparation for the Winter of gloom and doom, you'd think some ideas would emerge from Truss or Sunack as to how they're going to manage the energy crisis. Well, for starters, they could ditch the net zero pledge, scrap VAT on energy and scrap the green levy on energy bills, providing a 30% reduction right away. 😠 Quote Link to comment Share on other sites More sharing options...
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