Why are we paying so much for energy when profits are so high?

I been told there is a ludicrous rule in place stating that the National Grid must pay the highest price for wholesale electricity no matter how it is made. Therefore if solar is generated at 2p per kwh and gas at 3 per kwh then National Grid must pay a solar producer 3 for theirs too. Hence oil companies are making a mint because they're being paid more than they are asking for. Ridiculous, yes, but not their fault... which is why oil companies have said they're willing to pay a windfall tax as it's free money to them at the moment... but the government won't push one through. It's mad.

It clearly shows Urmstongran that the Tories don't care otherwise they would legislate immediately.

Does anyone know how much actual tax is paid on these profits in the Uk? I think that would be a small crumb of comfort in an otherwise bleak situation.

Exxon Mobil also made record profits.

Merseymog

How many Tories MPs have shares or directorships in energy companies. I have FIT solar and the amount I get paid for the electricity I generate has not gone up like the units I buy!

I wonder how many MPs of all parties own such shares?

Grantanow

It clearly shows Urmstongran that the Tories don't care otherwise they would legislate immediately.

I’m sure there’s a parliamentary committee with members comprised of all parties working on the energy issue. For goodness sake, the Tories might be in power but others DO contribute to running this country!

Greed and shareholders, simples! nationalise all energy companies.It is said that balance is needed in all things,too many things have been privatised,time to swing it back.

Because the politicians pensions are invested in the energy companies !

The shareholders are profiting. How much easier it was when the utilities were nationalised.

Have any of the utility companies announced their profits yet? the producers were never nationalised.

Bignanny2

Because the politicians pensions are invested in the energy companies !

I would expect that virtually everyone who has a private pension has investments in the energy companies.

I think its morally wrong for shareholders to profit so much too, they agree in France too, they put a cap on prices

Greed!

Whilst shocked at hearing the level of profit made by Shell, not all of it is generated in the UK. Many factors contribute to their profits not just provision in this country. I do feel the windfall tax could be higher as it is in Norway.

Do you really believe what you’re saying GrannyGravy13…..they’re taking all these profits ? No prices) from us because they can!!! Simples!! It won’t stop until fuel and water are put back into the public domain ! And taken from the greedy money-grubbing parasites that now own us.

dayvidg

Bignanny2

Because the politicians pensions are invested in the energy companies !

I would expect that virtually everyone who has a private pension has investments in the energy companies.

Indeed.

Anyone who buys shares for investment. Why would energy companies be different? People invest for profit, simple really. Bank percentage only pay so much, this is taking a chance to earn more.

The amount of investment in renewables from Shell's profits is negligible, and being hopeful that things will change is a waste of emotional energy. They won't - and the shareholders will continue to smile. I've continually heard this rationale that all energy companies need to invest in research yet the evidence just doesn't bear out any genuine effort in this direction. We, the consumers, are lining the pockets of the decision-makers in government many of whom stand to benefit from the higher prices the majority of society are now struggling to pay. A disgrace? Of course!

It's SCANDALOUS the profits they, these energy companies, are making and giving to SHAREHOLDERS. THEY NEVER EVER REDUCE PRICES DO THEY.

It clearly shows Urmstongran that the Tories don't care otherwise they would legislate immediately.

wonder what Labour would do though? they are very quiet!

actually, I admit I am cynical, one word from me is, corruption

Good question! So, why aren't our suppliers asking them the same question?

Offgem rules in favour of energy companies with little regard for consumers. There’s never a better time to impose windfall taxes - and the companies are already incentivised to invest in renewables. The windfall is additional to expected profits so the companies still retain extra income after a windfall tax.

ExperiencedNotOld - Parliamentary Committees are supposed to hold government to account but they do not contribute to the actions of government which also controls the agenda of the Commons (aside from a few Opposition days). The Committee's are not responsible for the mess the UK is in - the Tory government is and it is high time they accepted their time is up. Individual Tory MPs are heading for the hills in search of new jobs because they know it. I fear the mess they will leave behind will be enormous.

Debate over government support with energy bills will intensify when the industry regulator outlines details of its price cap.

Liberal Democrat leader Ed Davey told #BBCBreakfast the Government should continue to help households and businesses

twitter.com/BBCBreakfast/status/1630109839136559105

And its rising again in April how on earth do they think ordinary families will cope ? Thats the problem isn't it...they dont ever think about ordinary families ,tories only think about their own ordinary folk are beneath them .

Makes my blood boil what they've done to the people of these countries and I cant believe the number of people who would still vote tory...WHY?

ExperiencedNotOld

Grantanow

It clearly shows Urmstongran that the Tories don't care otherwise they would legislate immediately.

I’m sure there’s a parliamentary committee with members comprised of all parties working on the energy issue. For goodness sake, the Tories might be in power but others DO contribute to running this country!

Not so ExperiencedNotOld! Committees scrutinise and comment on matters. That is their contribution but they do NOT make decisions. Only the Tory government decides what to do and they clearly don't care enough to legislate to end the ridiculous arrangement identified by Urmstongran.

It really is important to understand the respective roles of the Executive and Parliament.