When Low Risk Means Very High Returns

The Energy Minister of the United Kingdom has complained about the excessive profits that two of the United Kingdom’s energy companies are making. Mr Edward Davey has focused his complaints (which he has made to the energy regulator) upon higher than expected profit margins that British Gas and SSE are making. These margins are in excess of 11% for the year 2012. He is right to complain. In theory utility companies should operate at very low Continue reading

It Will be An Expensive Winter

It is going to be an expensive winter in Britain. SSE, one of the six suppliers of energy that serve around 99% of the United Kingdom energy market, has announced that from 15 November there will be an average price increase of 8.2%. This increase is about the same level of increase that energy users had to pay this time last year when all the six oligarchic energy companies increased their prices by around 5% more than inflation. Continue reading