70% gas price rise

John_3:16

Just seen on TV Ch4 news Centrica are predicting a 70% rise.

penrhyn

No need to worry, the gurning leader is on the One Show and he is going to sort it out for us.
His forced grin is making me feel warmer already.

dori2o

have a heart, we have to protect the fat cats bonuses and dividend payments. It would be terrible to think they may have to take a pay cut. How would they cope without that extra £100K?

Poppycat

I am a BG customer if that is going up that much then I bet others will follow suit

http://www.channel4.com/news/articles/business_money/centrica+report+warns+uk+gas+prices+could+soar+by+70+per+cent/2344577

What I want to know is why has it been allowed to get to this state, for a start our oil is sold to the continent in Summer when demand is low and resold back to us in the Winter. We only have about 6 weeks supply in storage yet other countries like France have up to 3 months storage

http://europe.theoildrum.com/node/4193


http://www.dailymail.co.uk/news/article-1036057/Bleak-house-Families-facing-66-cent-explosion-gas-bills-choose-heating-eating.html


But consumer groups argue that there is no good market reason for the link, other than ensuring multi-billion windfalls for companies such as B.P., Texaco and Shell, as well as countries like Russia.

Energywatch, which represents the interests of consumers, has described the link as 'toxic' and says that if the price of gas was decided by supply and demand, it would be more than a third lower.

SwanJon

We have less storage because we never needed it - we had the North Sea, why build storage?
France didn't so had to build storage.
There are applications fighting their way through planning that will add to our storage capacity, but don't hold your breath - we'll soon be paying the same as the continent.

Poppycat

We must have needed storage at one time, because I recall seeing in my home town to very large containers which use to hold gas, they were taken down and the land sold for housing

The Tory government made the mistake in the 80's to allowed to much investment and reliance on gas powered power stations

The powers at be must have seen this coming, they should have invested some of that money they made from North sea oil in greener fuels and storage

SwanJon

The gas holders were left over from before North Sea gas when gas was made locally by burning coke (this was when gas was poisonous etc). These gas holders (if still intact) would be far too small for modern needs (although every little bit helps).
Many of the gas power stations were built when gas was cheap and coal was expensive so they made sense at the time.
It is the link to oil prices which artificially drags up gas prices.

Poppycat

I agree with what you say however the powers at be should have for seen the rise in gas prices and done something about it.

I think its scandalous that nothing is being done, and I am ashamed that many lives each Winter where people die because they cant afford to heat there homes, and this will sadly get worse.

We are all feeling the pinch and a lot of us struggle but there are some who are struggling and making a choice in Winter to eat or heat there home, this is unacceptable

There is no reason why gas prices should be linked to the barrel of oil

SwanJon

I agree that there is no reason that the price of gas should be linked to the price of oil, but that is how the monopolies of the continent have set up the price of gas, and we need to rely on something along the lines of the EU to sreak that link.
When we were using north sea gas we didn't have that link.
Now we have to buy from the continent we are affected by it.

Cardew

Poppycat wrote: »

I agree with what you say however the powers at be should have for seen the rise in gas prices and done something about it.

I think its scandalous that nothing is being done, and I am ashamed that many lives each Winter where people die because they cant afford to heat there homes, and this will sadly get worse.

We are all feeling the pinch and a lot of us struggle but there are some who are struggling and making a choice in Winter to eat or heat there home, this is unacceptable

There is no reason why gas prices should be linked to the barrel of oil

Greater storage capacity will not have a great effect on our prices; that is governed by world energy prices. We will only be storing enough gas for a few extra days - all countries only store gas to last days.

The UK price for gas is amongst the lowest in Europe.

There really is no point in saying that it is "unacceptable" and explaining the difficulties - of which we are all aware!

The only way any Government will reduce prices to their consumers is to provide a subsidy.

They did this for Households with anyone over 60 years old - first £100, then £200 and now £250.(that is a big slice of most people's bills)

If it is to be subsidised - shall we all pay more tax, or what service shall we cut - schools, defence, NHS?

Mazio_2

I dont disagree with either Swanjon or Cardew BUT

1) We will see when these companies publish their profits if they indeed needed to increase their prices to such an extent.

2) Alot of countries in Europe will have better climate conditions so you cannot compare with alarge part of it as they will not require so much heat in the winter and those were gas is alot higher probably have other sources of fuel?

3) The goverment should have made provisions for this at least had some sort of plan not expect to lose an election and let the next party get the problem.