Just had a letter from E-ON notifying us of an impending price rise in 2013. The letter starts off by saying how wonderful the company is for not increasing their prices in 2012

'.. but, unfortunately, we can't protect you from an increase any longer ..'

and the letter goes on about the '.. rising wholesale energy prices ..'

Good to know that 'spin' is alive and well to sanitise the pain of a price rise and lie to the customer to justifty E-ON's stance.

Just have a look at the graph of WTI (West Texas) oil prices below (Brent is pretty much the same profile)

This shows that prices peaked in March 2011 and Feb 2012 but troughs were Sept 2011 and June 2012. Furthermore, prices are currently (Dec 2012) below 50% of their high & more like 33% of their peak; additionally oil projections indicate a future downward trend

With this in mind where does the questionnable statement about '.. rising wholesale energy prices ..' come from, it is certainly not a valid reason for raising prices

There are a number of aspects to this whole matter that need looking into

  • The actual percentage rises themselves - dual fuel 8.7% and electricity 7.7% (i.e. £110 rise for a typical customer). Thought that the Government was encouraging below inflation price rises because any other approach would simply fuel inflation and add to the burden all round
  • Other countries such as France have regulated energy prices (i.e. gas 2-3% from January 2013 affecting 10 million households) and the electricity price for each category of user is regulated by law

Therefore the question is - are UK consumers having high price rises imposed on them in order for these international companies to make up for any shortfall in other 'regulated' countries.

In short is the UK paying for regulated prices on the continent?

Tags: | Categories: Energy