Octopus missive

[Borchester]

Why doesn't someone come up with the idea we don't need these middle men companies using our money to keep these parasites going?

Why instead of grandstanding aren't they coming up with ideas for the future of this country and people?

Probably because we do.

During the oil crisis of 1973 the price went through the ceiling, but the oil flowed. And as I have no doubt bored every one to death with this story before, in the 1960s, grain was not sold by American Republican farmers to the Red Communists of mainland China, it was all grown on the broad prairies of Singapore. And currency regulations were never breached in the UK. It was just a bunch of us guys who would meet every night at the Trafalgar Square post office who liked to send money to friends and relatives abroad.

We all know what we should do. But governments accept that you need a bit of wriggle room. They can't do anything about it themselves because if they did, then all of prigdom would be baying at its hypocritical best. You know. That bit where Boris got us out of the EU, took the Chinese flu in hand and faced up to Putin the Prat. But once it was discovered that he had had a pint with his mates at Christmas, well, the cup of national hypocrisy over flowed.

So, certain things need to be done but governments accept that they won't get any thanks for doing them. So they leave the duckers and weavers and carpet baggers to sort it out.

[cromwell]

Sanctioned Saudi Arabia yet for its aggression in Yeman? Putting a Yemani flag into your account any time soon?

No such a place a Yeman,and September will be here soon too.

[Sampanviking]

Well it just shows that the green agenda is crap
Poor long term provision of energy security is no excuse for Putins aggression.

Sanctioned Saudi Arabia yet for its aggression in Yeman? Putting a Yemani flag into your account any time soon?

[cromwell]

Possibly the most useful point in that Octopus missive is the admission (which I'm not sure I believe) that energy providers pay the same price per wholesale kilowatt whether renewable or not.

If that were true every energy company would charge the same.

What we need is companies to be free to sell us cheap energy from burning coal, like China, and see how many people really want to be green. Because the fact is the only ones who will be green this winter will be green from the mould on their frozen corpses

Well it just shows that the green agenda is crap

Feck sanctions

I want affordable food and energy and even better avoid an unnecessary and wholly policy generated recession.

Anyone in favour of sanctions is free to pick up my fuel and grocery bills so they can show their solidarity.....

Poor long term provision of energy security is no excuse for Putins aggression.

[johnofgwent]

Possibly the most useful point in that Octopus missive is the admission (which I'm not sure I believe) that energy providers pay the same price per wholesale kilowatt whether renewable or not.

If that were true every energy company would charge the same.

What we need is companies to be free to sell us cheap energy from burning coal, like China, and see how many people really want to be green. Because the fact is the only ones who will be green this winter will be green from the mould on their frozen corpses

[Sampanviking]

Feck sanctions

I want affordable food and energy and even better avoid an unnecessary and wholly policy generated recession.

Anyone in favour of sanctions is free to pick up my fuel and grocery bills so they can show their solidarity.....

[cromwell]

Why doesn't someone come up with the idea we don't need these middle men companies using our money to keep these parasites going?

Why instead of grandstanding aren't they coming up with ideas for the future of this country and people?

[Nick]

He is not going to win, but that reptile Truss is going to be even worse and is definitely not to be trusted either.

Worse for who?

[srb7677]

The government bung is due in October and may, or may not, need to be repaid depending on who wins because I don't trust the slimy multi millionaire bastard

He is not going to win, but that reptile Truss is going to be even worse and is definitely not to be trusted either.

[johnofgwent]

The government bung is due in October and may, or may not, need to be repaid depending on who wins because I don't trust the slimy multi millionaire bastard

[Borchester]

I've received nothing but then again I'm on their list of customers who don't want to be customers any more.

It's interesting they ignore the fact a huge chunk of the existing hike was sod all to do with any of the things they claim, but was a decision by OFFER to allow standing charges to rise to cover the losses all surviving companies have been forced to shoulder to cover the positive balances of customers whose providers went under.

Had a similar experience.

Last week I got onto British Gas and pointed out that I had not had a bill for two months. The lad at the far end asked for my latest reading which resulted in the discovery that they were working on the readings I sent them three months ago. So I did my angry old pensioner act and got mega apologies and the bill halved.

The bad news seems to be that the power companies are so into cost cutting that most of the human beings have been replaced by computers. The good news is that the computers are such rubbish that anytime anyone makes a fuss, the few remaining staff bottle out and give the customers a decent deal just to get them to shut up.

Since we are on the subject, what has happened to this government bung that we are supposed to be getting to pay for the power bills? I haven't chased it up, but if something is going then my paw is always out

[T00ts]

I've received nothing but then again I'm on their list of customers who don't want to be customers any more.

It's interesting they ignore the fact a huge chunk of the existing hike was sod all to do with any of the things they claim, but was a decision by OFFER to allow standing charges to rise to cover the losses all surviving companies have been forced to shoulder to cover the positive balances of customers whose providers went under.

Ah, that's interesting. Thank you.

[johnofgwent]

I've received nothing but then again I'm on their list of customers who don't want to be customers any more.

It's interesting they ignore the fact a huge chunk of the existing hike was sod all to do with any of the things they claim, but was a decision by OFFER to allow standing charges to rise to cover the losses all surviving companies have been forced to shoulder to cover the positive balances of customers whose providers went under.

[T00ts]

I received an email for Octapus power today explaining what in their view is happening to the cost of power and why. It made interesting reading. It is pretty long so here are some points from it.

What's caused this?

After the lockdowns around the world, global supply chains suffered from shortages, pushing prices up. But Putin's invasion of Ukraine sent to unprecedented levels and they've only got worse.



Where's the money going?

Put simply, oil and gas extractors. Whilst the cost of extracting gas hasn't increased, the global shortages have increased prices from 60p/therm to £4.80/ therm. To put it in perspective - the UK usually spends £11bn buying the gas to deliver to homes, and to generate electricity for them. This year that's more like £51bn.



Why is renewable electricity more expensive?

The UK has a single wholesale price for electricity — whether renewable or not. Indeed, renewable electricity costs more because we need to pay for certificates on top of the wholesale price. This is bonkers and we have frequently called for reform but not in time for this year.



Is Octopus making a profit on this?

No. We've never made a profit, nor paid our shareholders a dividend, and won't do this year. Instead, we have put everything into helping customers.



For perspective, we'd usually pay £1.5b to buy all our customers' energy for a year. This year it'll be more like £9b.



What could the government do?

We were pleased when the government announced its existing support package in May, but since then prices have escalated and that means the package is hundreds of pounds less effective than it was originally intended to be. And with January prices likely to be dramatically higher still, it's clear that the existing support package is not enough.



Whilst there are many ideas, Octopus agrees with other energy companies that the best plan is to freeze the price around the existing cap level. This would be paid for by an industry-wide fund. We'll blog details shortly, but in short — while wholesale prices are higher, companies use the fund to deliver the price freeze and when wholesale prices drop, companies pay back into the fund. This would see prices at current levels for 2-4 years, and then fall over the next decade - especially as cheap renewables come online and market reform passes the savings to customers. Crucially, it would also reduce inflation by about 3.5%, helping reduce other costs across the economy.



Surely the government can't support energy bills forever?

Absolutely right. The markets expect global gas prices to come back down in two-ish years, or sooner if the war in Ukraine resolves. This is because right now, gas storage is being increased and supply chains are being built and re-routed globally so that the UK and Europe get more reliable and resilient access to gas.



At the same time, renewable projects are being accelerated in the UK and across Europe, and electricity markets will be reformed to help bring electricity prices down via cheaper renewables. The long-term thinking in the plans we propose helps absorb the volatile and high market prices in the short term and then bring prices down as gas and electricity markets improve. We don't need magic money, we need shock absorbers and market reform.



Are prices going up more in the UK than in Europe?

Wholesale prices are very similar across Europe but government response varies by country.



Is there hope?

Yes. The price freeze proposal would stabilise prices whilst we get long-term solutions in place. And then prices will drift down to not much more than half current levels over the next decade. We will continue to work extremely hard with the rest of the industry, government and other organisation to try to make this - or alternative solutions - a reality.


I would not normally cut and paste like this but it explained it to me quite well (this is only part) I just wonder if it chimes with what other power companies are saying to their customers and does it ring true?