Sorry to intrude, but ... I thought you might like to hear something from the *other* side of the argument. Given that I *work* for an energy company ... !!
[All of this is, of course, unofficial, and I'm speaking from my own viewpoint and not as a representative of any particular energy company :p]
First thing to say is that, yes, undoubtedly, energy companies make money. Oodles of it - and after all that's kind of their raison d'etre (they *are* private businesses after all). However, and this is a very important point, all energy companies are (and have to be) subdivided so that their trading arms do not deal directly with their retail arms (to prevent issues of Leeson-esque proportions). In general terms, it is the *trading* arms that make all the money, not the end-retail arm. Indeed the domestic retail side of the firm I work for regularly makes a *loss*.
Since it's the retail side in charge of prices, it's pretty clear that prices actually aren't as high as they ought to be for retail to make money!
That said, much of this is caused by issues outwith the *markets*, and more to do with eg unbilled accounts, old debt, incorrect billing, some of which is our fault and some of which is National Grid Transco's.
In addition, the major issue with a windfall tax is that, with their other hand, the government is requiring energy companies to invest in 'green energy' schemes - the nature of which means they are expensive. So by imposing a windfall tax, the government is taking away much of the cash that would be used to finance such schemes, which would leave energy companies no option but to revert to 'cheaper' forms of energy production - ie ones that already exist; coal, gas, etc.
[The whole 'green energy' is a complete joke btw, and only a directed effort by the government will change that. Otherwise all the energy companies will simply pay lip-service to the regulations and continue to trade in 'carbon certificates' rather than actually producing any *real* green energy!]
no subject
Sorry to intrude, but ... I thought you might like to hear something from the *other* side of the argument. Given that I *work* for an energy company ... !!
[All of this is, of course, unofficial, and I'm speaking from my own viewpoint and not as a representative of any particular energy company :p]
First thing to say is that, yes, undoubtedly, energy companies make money. Oodles of it - and after all that's kind of their raison d'etre (they *are* private businesses after all). However, and this is a very important point, all energy companies are (and have to be) subdivided so that their trading arms do not deal directly with their retail arms (to prevent issues of Leeson-esque proportions). In general terms, it is the *trading* arms that make all the money, not the end-retail arm. Indeed the domestic retail side of the firm I work for regularly makes a *loss*.
Since it's the retail side in charge of prices, it's pretty clear that prices actually aren't as high as they ought to be for retail to make money!
That said, much of this is caused by issues outwith the *markets*, and more to do with eg unbilled accounts, old debt, incorrect billing, some of which is our fault and some of which is National Grid Transco's.
In addition, the major issue with a windfall tax is that, with their other hand, the government is requiring energy companies to invest in 'green energy' schemes - the nature of which means they are expensive. So by imposing a windfall tax, the government is taking away much of the cash that would be used to finance such schemes, which would leave energy companies no option but to revert to 'cheaper' forms of energy production - ie ones that already exist; coal, gas, etc.
[The whole 'green energy' is a complete joke btw, and only a directed effort by the government will change that. Otherwise all the energy companies will simply pay lip-service to the regulations and continue to trade in 'carbon certificates' rather than actually producing any *real* green energy!]