FredBloggs wrote:Nimrod103 wrote:Correct me if I am wrong but my understanding is that Centrica had a very large customer base, presumably most of whom were on standard rates which were presumably profitable until the Govt came along with their energy cap, which makes those rates untenable. Meanwhile other suppliers have pushed 1 year contracts on more competitive rates, using the car insurance model where if you don't switch provider after 1 year (or 18 months in some cases) you will lose out by being put on an uncompetitive deal. I don't understand why Centrica with its colossal buying power cannot seem to compete in this market.
Meanwhile I been resuming my yearly search for a new energy supplier, and my most competitive deal comes from Bulb, who I have never heard of but as well as offering me the most competitive rates, also brags about supplying me 100% renewable electricity. From what I read in chat rooms, my impression is that Bulb is picking up customers all around. I don't understand how they can do the business, yet Centrica can't.
I am appalled that my holding in Centrica has dropped like it has. The company seems to have lost all ability of running a profitable business for its shareholders. I should have sold out when I learnt that Haythornthwaite was in charge.
Not only that. It's actually much worse. Centrica is a vertically integrated business. It has it's own gas production assets so it is in control from the sea bed to the end user's boiler. It also has it's own CCGT power stations so it's generating it's own electricity too. If that business can't compete against a "Johnny come lately" in the energy business, it really is a dodo.
I assume Centrica (being biased towards gas energy) is being trashed by Govt dictat to push more subsidized renewable energy into the market?
How do you rate Centrica as a merger/takeover target?