Power companies are just plain greedy

JUST under two years ago I replaced my aged oil-fired boiler with an air source heat pump.

At the same time, I changed my energy supplier to a firm who assured me my electricity was from 100% renewable sources.

All was well, the heating provided a comfortable 21c° throughout my 200-year-old stone and cob cottage.

My electricity and heating bill was covered by a £80 per month standing order.

In December 2021 that was increased to £130/month.

I was aware most of the increase in energy costs are down to the increases in wholesale gas prices.

Like many other people, I am fearful of the further massive increases predicted in October.

As I only use electricity from renewable sources, which I believe have not increased in cost to a major extent, why the price increase? Are electricity customers being used to subsidise gas users?

I asked my energy supplier. The response was “the market price price bore little relation to the cost of production and distribution.”

The supplier used the illustration: “If you bought a house, the price would be tied to the current price of a similar house in your area sold recently, not by the cost of land, labour and materials.”

I replied to this by saying, “why can’t energy be priced on a cost plus basis?” which would seem a fairer system which would give the generator, distributor and supplier a fair return on their capital, while being fairer on the customer.

This question was not answered - but it strikes me the market is paying scant regard to the needs of consumers, especially less fortunate ones.

Maybe it is time the consumer had a fairer crack of the whip and the money men were not so damned greedy.

JUSTIN BEAMENT