Are we on the verge of an energy price war?
As we covered in one of our earlier post, the surprise announcement of a 10% reduction in electricity prices from British Gas took the market by surprise. Even though the decision by British Gas to reduce prices has been welcomed, although significantly later than some competitors, there is a feeling that the company is looking to take on other UK energy companies and inject a price war into the sector.
There has for some time been a suspicion that energy companies in the UK have been shielding investors from wholesale price reductions, which has effectively increased the profit margin for the likes of British Gas. While today's move has been welcomed across the board there is a feeling that consumers are being manipulated although hopefully with more price reductions expected there should be significant savings to come.
Whether the likes of British Gas and other UK energy providers have caught wind of any government action against them in the short to medium term or they really are looking to assist UK consumers remains to be seen. The sector has been on the receiving end of severe criticism for some time after various excuses were issued to explain the lack of price reductions in line with wholesale prices. Have we really turned the corner?
Share this..
Related stories
When do you start teaching your children about finance?
There are many areas of the UK education system which attract differing opinions but one where there seems to be a consensus of opinion is the area of finance and the fact that children should be taught about money at an early age. We are not talking about investment or business, just what money is, how you use it and what it can do for you. By adding this subject at a very early age we should s...
Read MoreJohnston Press financing highlights difficult market
Troubled printing group Johnston Press has been forced into a debt refinancing program which was supported by Royal Bank of Scotland and Lloyds bank. However it has been revealed that the company will be borrowing funds at 20 times the current base rate in the UK which is approximately double the current rate the company was locked into. Without going into further detail about Johnston Press this...
Read MoreAre UK property prices on the way down?
A report by the Nationwide today suggests that UK property prices increased by just 0.1% in June citing fears of a potential double dip recession if, as expected, the UK housing market cools in the second half of 2010. This compares with a 0.5% increase, according to the Nationwide, during May and could well be bringing to an end a sustained period of recovery in the UK housing market. So what can...
Read MoreIs British Airways on the brink?
While the last few weeks have seen British Airways introduce significant cost savings, work without pay and a fundraising, there are still concerns that the group is in trouble. In a rather bizarre turnaround in the historic fight with the unions, many believe it is only the power of the union leaders that is actually stopping the vast majority of British Airways 40,000 employees from going on str...
Read MoreGovernment set to strip Northern Rock of 100% savings guarantee
In a further move towards a return to the private sector it has been revealed that the UK government is set to withdraw the 100% guarantee for savers with Northern Rock. This guarantee was introduced after the bank nearly collapsed and customers were looking to leave en masse. However, the bank has undergone a major reorganisation over the last few months which seen the company split into a "good...
Read More