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

Oil/gas producers are taking the market rate which is higher right now due to lack of supply and increased demand…they have a certain $ per unit to break even and we are substantially above that now. More profits at higher $ per unit.

Electric and gas companies are end users and highly regulated in terms of ability to raise prices. But infrastructure is expensive and speaking for Americans we don’t adjust the way we live so prices go up to keep the supply moving.