Are those companies GREEDY SODS?

About time the government intervened on those issues, were all the contry is punished ( business and consumers )


Government Intervention in the Market

In a free market economic system, scarce resources are allocated through the price mechanism where the preferences and spending decisions of consumers and the supply decisions of businesses come together to determine equilibrium prices. The free market works through price signals. When demand is high, the potential profit from supplying to a market rises, leading to an expansion in supply (output) to meet rising demand from consumers. Day to day, the free market mechanism remains a tremendously powerful device for determining how resources are allocated among competing ends.

Intervention in the market

The government may choose to intervene in the price mechanism largely on the grounds of wanting to change the allocation of resources and achieve what they perceive to be an improvement in economic and social welfare. All governments of every political persuasion intervene in the economy to influence the allocation of scarce resources among competing uses

What are the main reasons for government intervention?

The main reasons for policy intervention are:

•To correct for market failure
•To achieve a more equitable distribution of income and wealth
•To improve the performance of the economy

To obtain cheaper fuel prices we are told to swap providers, this has limited appeal but what if millions of consumers swapped to just one or two providers ie, deserting the other four main providers. I know it's a huge task but with FB and email surely it could be achieved. This is similar to the calls to boycott certain petrol companies back along.
2517

Good suggestion 2517George. There are villages/towns signed up to one supplier and they are given discounts. Just wonder why energy providers do not do more of this.
Perhaps they would be frightened that the group of consumers could press to hard for discounts and walk away to another supplier.

what a lot of "bollocks" no evidence of manipulation says Ofgem and "full force of the law" if allegations are true

Ofgem works with the companies as is the Tories

7 November 2013

Regulators have found no evidence of price manipulation in the UK wholesale gas market after an investigation.

Energy regulator Ofgem and the Financial Conduct Authority (FCA) began an investigation a year ago, following allegations by a whistleblower.

"No evidence of the alleged market manipulation could be found [and] the interests of consumers have not been harmed," the regulators said.

The finding comes amid concern over the rising cost of gas for consumers.

In recent hearings at the Energy Select Committee, energy company bosses have blamed rising wholesale gas prices for recent increases in energy bills.

Four of the UK's six main energy companies have recently announced price rises, with an average increase of 9.1%, and the other two are expected to follow suit soon.

The firms say the rises are largely due to increasing wholesale prices.

Ofgem says wholesale costs have risen 1.7% over the last year, but the wholesale price of gas for use this winter has risen by 8% compared with last winter.

Whistleblower

About 46% of the average dual fuel bill is made up of wholesale energy costs, according to Ofgem.

The whistleblower, Seth Freedman, worked at ICIS Heron, a financial information company that publishes energy price reports.

At the time of the launch of the investigation ICIS Heron said it "detected some unusual trading activity on the British wholesale gas market on 28 September 2012, which it reported to energy regulator Ofgem in October".

Mr Freedman told the BBC in November 2012 he thought that price-fixing was widespread. "Having spoken to traders and other market participants, it seems like manipulation is rife in the gas market," he said.

In response, Energy Secretary Ed Davey promised to apply the "full force of the law" if the allegations were proved true.

The allegations suggested that gas was sold by traders at low-than-market prices in order to influence the benchmark price used to price a range of contracts.

But Ofgem said the traders concerned had given "credible" explanations to "demonstrate that their trading activity was not improper".

Ed Davey said Ofgem and the FCA had conducted a "rigorous review", but still pledged to introduce criminal sanctions for energy market manipulation.