‘Watchdogs just watch us get ripped off’: Readers slam energy bill hikes

HEanger flared between Independent Readers are warned after UK energy watchdog Ofgem approved a £28bn investment to upgrade gas and electricity networks, which is expected to increase household bills by £108.

Many have challenged the idea that consumers should bear the costs, emphasizing that energy companies are already highly profitable and that past underinvestment is a result of prioritizing shareholder dividends over infrastructure.

Many emphasized that profits should be used to fund improvements rather than burdening customers with rising bills.

Others have questioned the fairness of the system; Observers appeared powerless to prevent companies from passing on costs to the public, they noted, and argued that government intervention in buying back utilities could ensure profits were reinvested in improvements rather than lining shareholders’ pockets.

Some comments acknowledged that investment was necessary to maintain energy security and transition to cleaner energy, but emphasized that consumers should not be penalized for costs that companies can easily cover.

Here’s what you need to say:

Amazing

“Renewing our gas and electricity networks after years of underinvestment is crucial to keeping the lights on and ensuring energy security for our country.”

Am I the only one who finds this statement surprising? If my local shop decided it could no longer provide the service it wanted and the only way forward was to charge every household in the area £100 to fund it, people would be outraged. Nobody pays, and for good reason.

Energy companies are making huge profits, but there are still “years of underinvestment.” To coin a phrase, power corrupts, and total power corrupts completely.

Only

Investment and shareholder dividends

If investment is needed to improve infrastructure, that’s fine, but I expect companies to use all available funds to do so. Only then should they be allowed to raise prices for consumers. They should never be allowed to pay dividends to shareholders during this period.

In almost any business, you can’t avoid developing your business and making your customers bear the resulting costs. This is the purpose of profit; improving and growing the business, not lining shareholders’ pockets and giving bonuses to senior management.

JoeNinety

Low cost relative to savings

Reading some of the comments in this thread shows that we are not a serious country anymore. The grid urgently needs updating, and yes, governments of all persuasions could have ensured that the grid did not deteriorate this much, but we are where we are now. It’s an addition of £108, minus a saving of £80, so that’s essentially nothing at around £30 a year until 2031 (less than most people would spend on eating out). No wonder modern governments can’t get anything done.

Dr.G.

Regulatory costs are falling on consumers

In the past, companies used investors’ money to improve their services. The regulator, now funded by corporations, continually pushes these costs onto the consumer. This causes companies to flee. Energy companies, like Thames Water, are run by greedy people. Let’s go back to what we have where services are provided by local companies.

PAULT2

Profit over investment

Yes, investments in electricity grid infrastructure are definitely needed. Partly because, as private companies, they pay dividends from large profits to their shareholders rather than reinvesting those profits into infrastructure (or at least a very significant portion of those profits). Currently the increase in consumers’ bills is not due to the need to invest, but because they need to invest and want the same profit, if not greater. What if this means energy costs go through the roof? So be it. They can easily afford this. But what if the rest of the population can’t do this? Tough.

grumpy old man38

Watchdogs failing consumers

What’s the point of having ‘watchdogs’? Just to watch us get screwed left, right and center??? I would rather pay this money in additional income taxes so the government can buy back the energy and water companies from these crooks and scammers and spend the profits on making improvements!!

scud10000

Profit must finance investment

Funny, I thought the bills were actually for energy used. Why don’t they invest the profits already made and let shareholders suffer from reduced dividends? I thought that was the point of profit 🤔 That’s the way it should be, don’t expect customers to keep coughing up money while shareholders keep hoarding cash.

impasse

Some of the comments in this article have been edited for brevity and clarity.

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