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Rip Off ?

Observer II

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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.

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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.  😠

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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. 😠

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