Why are electric and gas bills going up, but oil companies making record profits?

Question

I thought the reason they were increased is so we could get the same power with reduced supply?

However a fair few power companies are reaching ridiculously high record profits, which goes against the grain of that idea.

In: 16

Answer 1

No, the supply is reduced so you are not getting same power. The price is just to decide who gets to continue using power and who has to cut consumption. The extra you are paying is to force someone else out of the market, of course the suppliers are tickled pink about the situation.