I'm going by an article in the Guardian on the makeup of the cap
It said a margin of 1.9% was allowed (which is within the margin and overheads).
Even in more profitable days and pre-price cap and wholesale spike, I think the general consumer margin was around 3% for the big 6 as was.
A lot of the problem at the moment for the consumer companies is the gap between the basis of cap pricing and implementation. I believe we are more than half way though the period for the next cap and it will be live several months after the period used for calculation. How this will change if they go quarterly I don't know, I'm not sure that hedging over a shorter future would work.
Not my specialist subject, I know just enough to talk total rubbish about it.
Posted By: watfordcanary on May 17th 2022 at 15:16:07
Message Thread
- wrath advice required (General Chat) - shoddy, May 17, 08:35:23
- You need to respect the will of the people (n/m) (General Chat) - ChampsChamps2023, May 17, 13:09:26
- Supernanny has spoken.... (General Chat) - Captain Bligh, May 17, 15:03:48
- if you think its wrong ... its wrong (n/m) (General Chat) - ghostof barry butler, May 17, 08:50:08
- Profound (General Chat) - CWC, May 17, 08:53:02
- why (n/m) (General Chat) - ghostof barry butler, May 17, 09:09:58
- Interesting thread on gas (General Chat) - SCC 28, May 17, 09:05:26
- Love those threads (General Chat) - CWC, May 17, 09:32:18
- Saw that earlier (General Chat) - jamesward, May 17, 09:14:12
- No (General Chat) - CWC, May 17, 09:39:10
- though the price cap doesn't allow for anything like 10% (n/m) (General Chat) - watfordcanary, May 17, 11:56:14
- As I said. Price cap B2C is massively loss making (General Chat) - CWC, May 17, 12:10:47
- The margin built in is less that 2% and yes, most standard tariffs are loss making now (n/m) (General Chat) - watfordcanary, May 17, 12:42:20
- all SVTs I'd imagine (General Chat) - CWC, May 17, 14:06:20
- I'm going by an article in the Guardian on the makeup of the cap (General Chat) - watfordcanary, May 17, 15:16:07
- all SVTs I'd imagine (General Chat) - CWC, May 17, 14:06:20
- The margin built in is less that 2% and yes, most standard tariffs are loss making now (n/m) (General Chat) - watfordcanary, May 17, 12:42:20
- As I said. Price cap B2C is massively loss making (General Chat) - CWC, May 17, 12:10:47
- And if we get back to where things were (General Chat) - SCC 28, May 17, 10:01:02
- depends... (General Chat) - CWC, May 17, 10:33:03
- Cheers (General Chat) - SCC 28, May 17, 10:52:38
- Not sure that the cap will but new fixed deals might (General Chat) - CWC, May 17, 11:23:01
- Cheers (General Chat) - SCC 28, May 17, 10:52:38
- depends... (General Chat) - CWC, May 17, 10:33:03
- Right, ta (n/m) (General Chat) - jamesward, May 17, 09:53:19
- though the price cap doesn't allow for anything like 10% (n/m) (General Chat) - watfordcanary, May 17, 11:56:14
- No (General Chat) - CWC, May 17, 09:39:10
- What if he’s wrong? (n/m) (General Chat) - SCC 28, May 17, 08:51:11
- Then he's wrong. (n/m) (General Chat) - protheroe fitzgibbon, May 17, 10:24:31
- It's his truth, so right and wrong don't count (n/m) (General Chat) - paulg, May 17, 10:04:42
- Can we stop banging on about Todd Cantwell please? (n/m) (General Chat) - jamesward, May 17, 10:41:07
- Profound (n/m) (General Chat) - SCC 28, May 17, 10:06:39
- Sounds a bit snowflake to me (n/m) (General Chat) - Legacy Fan, May 17, 10:12:31
- Profound (General Chat) - CWC, May 17, 08:53:02
- Yes, no, maybe (General Chat) - Cardiff Canary, May 17, 08:47:16
- You need to respect the will of the people (n/m) (General Chat) - ChampsChamps2023, May 17, 13:09:26
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