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Given your massive price rises are you also going to put up the SEG Tarif?

  • 3 September 2021
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Given your massive price rises are you also going to put up the SEG Tarif?

 

if it’s such a scarce resource then you should be paying me more

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Best answer by Gwyndy 26 September 2021, 12:10

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Hi

Considering this is a public forum, made up of PP customers, and you're not talking to PP directly, we can't really answer that question, sorry.

Crazy price increase now >£0.20kWh.

I'm in Energy so fully aware of current market but have PP not hedged their position? How exposed are they exactly?

 

We didn't see price decreases last summer when energy was trading at £37/MWh so why the massive hikes now? Stinks of profiteering and given the BP relationship I think it's time for me to bail.

 

Nice idea PP but I'm out. 

Userlevel 1

I can’t help but wonder why an energy company supplying their energy from “100% renewable” would have to put their prices up due to an increase in fossil fuels? Just a thought. I think I know the answer but perhaps these companies should be more up-front with their advertising. Maybe the phrase should be something like “100% renewable energy, unless it’s actually not”

I can’t help but wonder why an energy company supplying their energy from “100% renewable” would have to put their prices up due to an increase in fossil fuels? Just a thought. I think I know the answer but perhaps these companies should be more up-front with their advertising. Maybe the phrase should be something like “100% renewable energy, unless it’s actually not”



Supply and demand.

The ‘renewable’ suppliers Pure Planet get their energy from have to sell their energy at a price which makes them some degree of profit, yet remains reasonably ‘competitive’ to the prices charged by the ‘traditional’ sources - presumably the price of REGOs rise and fall to reflect this. If they didn’t then the ‘renewables’ may not be used due to the price differential being too high, and eventually with no demand for their energy, they would collapse.

When the price of the traditional sources increases, then the price for renewables will also increase, thus providing the ‘renewables’ suppliers with extra income to either tide them over when prices are low (as they were last year) or funds for investment in further renewables projects.

This, back in the days of my City and Guilds, (lordy do I feel old) was termed ‘Competition is good for the consumer’ - see also: supermarkets, and pretty much anything manufactured where a low selling price is important.

Some companies, can get around this by:
Limiting supply.
Creating artificial demand via ‘hype’ - thus allowing the Apples of this world to make lots of profit.
Providing extra ‘features’ compared to the ‘opposition’ (those of you old enough will remember this one leading to the ‘Golden Age’ of the ‘Hot Hatchback’) 

The reverse of what’s happening with prices now occurred a few years back when OPEC deliberately increased production, and therefore reduced the price of a barrel of oil, in an attempt to put competition from tar sands and fracking out of business.

Hopefully now you will wonder no more.

Userlevel 7
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Crazy price increase now >£0.20kWh.

I'm in Energy so fully aware of current market but have PP not hedged their position? How exposed are they exactly?

 

We didn't see price decreases last summer when energy was trading at £37/MWh so why the massive hikes now? Stinks of profiteering and given the BP relationship I think it's time for me to bail.

 

Nice idea PP but I'm out. 

@Toasty 

Sorry for the late reply, I missed your post.

I don’t follow your logic.

The prices of the fixed tariffs are so high because PP had to hedge at a higher price.

Good luck.

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Given your massive price rises are you also going to put up the SEG Tarif?

 

if it’s such a scarce resource then you should be paying me more

Get a battery and charge it with your own solar. Best way to hedge any rise in wholesale prices: you consume what you produce.

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I can’t help but wonder why an energy company supplying their energy from “100% renewable” would have to put their prices up due to an increase in fossil fuels? Just a thought. I think I know the answer but perhaps these companies should be more up-front with their advertising. Maybe the phrase should be something like “100% renewable energy, unless it’s actually not”

Because the marginal cost of electricty is always paid at the highest point in the power stack curve at the point of demand.

 

Wholesale energy price is set every 30mins, yet you pay a flat rate regardless of time of day.

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