In stead of getting a windfall tax how about getting them to reduce prices so that the customers saves and not the government gains
@10mattyboy
Жыл бұрын
Get who to reduce which prices? Centrica and other gas extractors are global firms selling wholesale gas n oil on the open world market in effectively an auction style bidding process. So, the wholesale market (suppliers) decides the price its willing to pay based on demand from their customers (ie consumers). The more consumers use gas the more that needs to be bought on the wholesale market by suppliers, driving up the price because there’s only so much gas available that has been extracted (which even in this day n age is an arduous process, hence why extractors are investing & risking so much in potential new drilling sites). So, the wholesale gas market is much like that of an auction for rare pieces of art….scarcity drives a bidding war. And that scarcity was caused by Putin, so blame him if you’re gonna blame anyone. Ultimately, to reduce the price, either global supply has to increase (not a short term fix) or global demand decease (by consumers using less gas).
@quinn66666
Жыл бұрын
It doesn't matter how much tax Centrica pays, we the consumers are still paying for overpriced energy. The fact that they're making so much profit in this current climate is the issue. Taxing them 60-70% will only help the government, not the general public.
@padiedo7213
Жыл бұрын
No need to explain we are being TAKEN FOR A RIDE
@sea-saw2654
Жыл бұрын
Who sells gas to British gas? Centrica .! who majority's shareholder of British gas Centrica .!? Government sponsored Racket !! No other word ....
@10mattyboy
Жыл бұрын
British Gas buys its gas on the open wholesale market like all other suppliers, it’s effectively an auction, not buying directly from the extractor. So suppliers from across the UK and rest of the world bid for that gas, based on the volumes they need to satisfy consumer demand. It’s no cheaper nor expensive to buy from centrica than any other extractor because of the strict competition regulations. And even if gas has been extracted from the North Sea by Centrica et al, it’ll go to the highest bidder anywhere in the world.
@roycampbell5605
Жыл бұрын
Nationalise all utility companies the the government would have l those massive profits to spend on ungrateful illegal immigrants while our own homeless live on the streets
@edenbreckhouse
Жыл бұрын
Would you really find any of the mainstream parties capable of running even a whelk stall let alone a massive industry?
@roycampbell5605
Жыл бұрын
@@edenbreckhouse see what you mean probably appropriate the profits
@10mattyboy
Жыл бұрын
Nationalising the utility companies would also mean the taxpayers having to fund future investments (such as upgrading equipment, hiring new staff, research and development into potential new drilling sites etc) rather than investors on the stock market
@satansbunny3383
Жыл бұрын
Why is the answer that energy companies should pay a windfall tax..why aren't people asking for energy prices and standing charges to be lowered...this benefits the consumers and not the government? Genuine question, genuine answer please.
@satansbunny3383
Жыл бұрын
@@dogbreaththe3rd851 what has to be destroyed...are you on a break from gaming at the moment? You can certainly tell who the school kids are...stupid comment.
@10mattyboy
Жыл бұрын
Because those same energy prices and standing charges that the likes of British Gas charge consumers and businesses only just about cover their own costs (their profit margins are tiny). The suppliers to you n me buy gas on the wholesale market which is effectively like an auction with bidders from across the world. Obviously there’s less gas to go around on that wholesale market because of the Russian invasion of Ukraine. And just like with a rare painting going on sale in an auction house, scarcity causes a bidding war and drives up the price. So, British Gas either pay a lot more for the gas then they used to or they miss out to a rival (who is willing to pay more) and then don’t have enough gas to supply to its circa 7 million customers. The energy companies such as Centrica (who are effectively the artist putting their creation on sale in our auction house analogy) aren’t paying significantly more to extract gas from sites such as the North Sea but are significantly benefiting from the income they receive as a result of the bidding war from suppliers. Of course, the energy companies making significantly more revenues n profit isn’t altogether a bad thing as it enables them to attract more investors (and therefore funding to invest in more advanced n efficient drilling equipment or investigating new untapped gas sources which in turn could both enable them to increase the amount of gas they can extract to put up for auction and so reduce the scarcity and thus price retail suppliers need to pay - albeit it would take a few years for this to bear fruit). The likes of British Gas would be able to pay less for wholesale gas (and thus reduce the retail price per unit n standing charge passed onto consumers n businesses) if there was more gas available to go around on the wholesale market (not likely in the near future as I said earlier as it takes years to extract a meaningful amount more) or if it’s customers used less gas (so it would only need to bid for lower volumes of wholesale gas and therefore lower its total outlay). So, essentially, the price we as consumers pay is all driven by supply n demand. We can’t do much to influence supply but we can reduce our demand and thus the amount we pay.
@kennethgoldswain7302
Жыл бұрын
Need to increase supply to do that. And significantly so. A few things could be done to do this but the question is whether it is worth it. Here are just 2 potential solutions but they are very long term: 1. Nationalise the exploration and extraction of the resources so that the govt is in control of where the gas goes. This may not even increase supply because we may already be buying everything the current private companies produce and probably even more. 2. Produce alternate sources of energy which does the same thing as gas currently does now but is not subject to the enormous demand on it across the world. (I.e. cheaper). This does not necessarily mean green energy although that could be part of the solution. Mainly nuclear, wind (for residential), geothermal heating (for new buildings) and coal (for emergencies like now). Both of these suggestions are long term solutions and will not help immediately so it begs the question if they are worth investing in or not. A short temporary spot of being uncomfortable until the market corrects itself? (if it ever does that, which is another debate.) Or taking action which may never be needed again. I know that I would rather build than sit still but that is just my opinion. Hope that helps.
@colingreen6950
Жыл бұрын
MP'S should stand up for the people that they supposedly represent , These exorbitant profits are another " slap in the face " for the ordinary people who are struggling to survive . The company " executives " should be held responsible for this outrageous situation
@willowcawthorne2999
Жыл бұрын
We need names and addresses. They’ve cost me a lot of money over the last year in the domestic sphere. I wonder how they’d like their insurance premiums to go up after an almost endless run of things breaking,falling or otherwise accidentally breaking on their properties?
@10mattyboy
Жыл бұрын
No such thing as excessive profits. People sell their houses for as much as they can and businesses try to make as much profit as they can. Gas prices will fall, just like house prices will fall, if supply exceeds demand. It’s simple economics.
@alanglasgowbassist
Жыл бұрын
The only people MPs stand up for are themselves 😢!
@colingreen6950
Жыл бұрын
@@10mattyboy Wow ! Thanks for all the info
@leebolton9913
Жыл бұрын
@@10mattyboy I noticed on your channel you have subscribed to a channel improvement pill .That's all I have to say
@charlievernon4064
Жыл бұрын
How do I always get the feeling Liam Halligan is always defending the energy companies 🙄
@johnbrereton5229
Жыл бұрын
I don't know, because I didn't think he was. On the contrary, I'm very impressed with Halligan, he explains things perfectly.
@10mattyboy
Жыл бұрын
He understands the reality of business and finance. Unlike most people.
@adamsina-vm3xo
Жыл бұрын
Shareholders, Name and shame them. Guess you have a few politicians on the list.
@Benjieboy247
Жыл бұрын
Unfettered capitalism is a crazy thing
@10mattyboy
Жыл бұрын
Capitalism creates 2 things: wealth for some and envy in the rest. It’s a choice.
@Benjieboy247
Жыл бұрын
@@10mattyboy It's a race to the bottom. A remarkable system that's changed the world completely
@10mattyboy
Жыл бұрын
Just looked at the Centrica accounts in detail and the amount paid in dividends for 2022 was £59m. Just in case the hard of thinking thought that all £2.8bn operating profit (which isn’t even cash) went into the bank accounts of its shareholders.
@derekwhite2929
Жыл бұрын
Only just got a new gas boiler for heating & hot water, because I'm disabled & housebound & was freezing!
@10mattyboy
Жыл бұрын
That’s £2.8bn before tax. Over £1bn out of that was then paid in tax. Plus it doesn’t take into account how much of the after tax profit has then been retained in the business to pay for things in 2023 and beyond (eg bidding for new drilling licences, buying more advanced equipment, r&d, capex on renewables, staff pay rises, hiring additional staff etc etc) or how much is paid out in dividends to institutional investors like pension funds who are acting on behalf of our ageing population. Plus, due to competition regulations, Centrica can’t sell the gas it has extracted at a discount to British Gas as this would be giving its own subsidiary preferential treatment. So while while I sympathise with British Gas (and indeed other energy supplier customers) I’m afraid supply n demand determine the wholesale price and by function the retail price. There are always going to be downsides as well as upsides to living in a global market economy.
@december974
Жыл бұрын
Why should he wave his bonus he doesn't set the prices
@alanglasgowbassist
Жыл бұрын
2.8 billion. That would give a wage rise to those who deserve it.
@10mattyboy
Жыл бұрын
A private company, which isn’t even British owned, is not going to give away all its operating profit (which isn’t all cash btw) and therefore only break even when it still has to pay interest, tax, fund future investments, recruit more staff, raise capital, pay dividends to pensioners etc. Even the announcement of their profits going from £2.8bn to £2.5bn (let alone £0) would dramatically reduce the share price and thus wipe the value of millions of pensioners retirement funds
@10mattyboy
Жыл бұрын
@@dogbreaththe3rd851 exactly. But I’m afraid lots of people want someone to blame rather than taking 💯 responsibility for their own circumstances. Life is v tough for many atm but waiting/relying on someone else to save/help you get what you want is a lesson in futility
@malcolmabram2957
Жыл бұрын
There are so many opportunities for the government to actually help people on low to middle incomes, especially the millions of critical workers that run our economy. Cap on utility companies profits Abolish the TV licence Put a cap on exorbitant private rents Start a new social housing policy Give free staff parking to nursing, medical and hospital staff. Abolish outer ULEZ charges until EVs are affordable with easy access to charging I am sure you can think of a number of other positive measures.
@10mattyboy
Жыл бұрын
Yes but the government is ultimately only distributing the money it gets from taxpayers (both individuals and businesses). All that help you want given has to be funded (either through higher tax receipts and/ or reducing spending elsewhere). Obviously it also borrows money but that then has to be repaid, along with interest, through tax receipts. If taxpayers as a whole wanted to really help those on lower to middle incomes bad enough they would’ve done something about it by now. These sort of changes you want come from the bottom up and not the top down. And in my 40+ years experience, individuals and businesses on the whole tend to act in their own interests and not the betterment of society.
@malcolmabram2957
Жыл бұрын
@@10mattyboy I take your point. Except the Clement Attlee administration of the late 1940s introduced over 30 social reform measures from the initiation of the NHS to protection of allotments from building developers. In the 1920s Attlee did voluntary work amongst the poor of the East End in London and was appalled at the conditions, impoverished tenants paying exorbitant rents to absent landlords. He wrote a book called the social worker, where he argued that long term effective social reform can only come about by government intervention, not through charity or people's good will. Following his administration the nation had a period of growth, low unemployment and social prosperity which has never been matched in British history. When the poor are enfranchised they have more money to spend and invest in their lives, and it benefits all people. The trouble is greed and short term policies are the enemy of such, and I fear such an administration will never be repeated. The measures I propose will not be a drain on the taxpayer. Indeed the Attlee administration ministered during the period of post war austerity.
@Red-bw1cu
Жыл бұрын
I think At the top a greedy halfwit owns it jus like everything, bet they are nice and warm right now❤️
@bettyholmes1155
Жыл бұрын
Profiteering at its worst suppose they want the Ukraine was to continue All their excess profit should be used by our government to support the homeless
@10mattyboy
Жыл бұрын
It would be quicker, easier and more effective to support the homeless if individuals took it upon themselves to help out the less fortunate (rather than waiting for the government to collect your tax n NI and then distribute it to a whole variety of public spending needs). Meaningful change happens from the bottom up and not the top down.
@adrianrouse5148
Жыл бұрын
Who owns this company Where do the shareholders come from.????
@SCARFACE-gp4fy
Жыл бұрын
PAKISTAN AND INDIA
@billmiddleton2183
Жыл бұрын
Based on revenue from estimated bills I expect. Fantasy.
@10mattyboy
Жыл бұрын
Yes, sounds like you understand the IFRS 15 criteria to me
@mauricetucker8754
Жыл бұрын
Look at the books for investment in the future and loans hide and seek?
@tomosa6880
Жыл бұрын
Centrica suck.
@Lorelei6836
Жыл бұрын
Stop using gas and electricity
@BongoAboutBedfords
Жыл бұрын
So, ‘Centrica ‘sells its gas ,(via its own infrastructure ), to its own Company’British Gas’ !!. What a Frekin Racket !!. Liam Halligan gives us a sob story that ‘British Gas’ only makes £10 quid per retail domestic customer !! .
@10mattyboy
Жыл бұрын
Centrica sells its gas to a variety of companies including British Gas on the open wholesale market. British Gas have to bid along with all the other suppliers and just like any auction the highest bidders win and thus have to pay the most. And British Gas don’t get any discount from buying from Centrica because the competition authority doesn’t allow it. And Centrica owning British Gas is a normal part of the business world where one Group can own many companies across the supply chain. For instance, Apple owns manufacturers of semiconductors and factories that assemble iPhones, iPads, laptops etc as well as its own stores that sell the finished product and as well as all the operations in between such as software development. Why wouldn’t you want to maximise your profits and control along each element of the value chain ? After all, as a for profit business, your primary objective is to maximise shareholder wealth and you are ultimately answerable to your investors
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