Wholesale gas prices have collapsed!!!

Milarky

On the subject of a possible 'windfall tax' on the utility companies, how is that going to address the question of higher individual (and average) consumer bills?

This 'blah-di-blah' about 'fuel poverty' doesn't ring any bells with me. I can see how the government could 'decree' an increase in winter fuel payments (targeting 'average' bills) this year but that is just sticking plaster since only certain groups get these payments - but everyone gets roughly the same fuel charges.

There is a case (or sorts) that the energy companies have enjoyed a 'windfall' courtesy of not having to pay for tradeable emission permits for a number of years but from what I read that particular epispode is unlikely to be repeated as permits will have to be paid for after 2012. A windfall tax in the upswing of a boom - like 1997 - by a newly elected popular government sitting on healthy tax revenues is one thing; a windfall tax imposed by a fiscally busted (and hugely unpopular) one is another. Could the windfall tax idea just be a smokescreen to meaningful action in this area?

Why not just pass a law giving every consumer so many 'free' (or discounted) units/therms, and them allowing a 'free' market in prices for consumption above this? Is Europe stopping such a direct method of dealing with fuel poverty? At present, utility companies charge a differential price equivalent to the standing charge for the initial units - but making subsequent units progressively dearer simply reproduces the concept of a progressive income tax. If progressive income tax is considered necessary in a decent society then why hasn't (controlled) 'progressive pricing' been tried?

StevieJ

Gas commodity prices down 8% again today, oil also falls below $120 during the day.

cepheus

Milarky wrote: »

T

Why not just pass a law giving every consumer so many 'free' (or discounted) units/therms, and them allowing a 'free' market in prices for consumption above this? Is Europe stopping such a direct method of dealing with fuel poverty? At present, utility companies charge a differential price equivalent to the standing charge for the initial units - but making subsequent units progressively dearer simply reproduces the concept of a progressive income tax. If progressive income tax is considered necessary in a decent society then why hasn't (controlled) 'progressive pricing' been tried?

Quite, it shows how committed these companies are to reducing energy use when they make it cheaper the more we use. It would make it confusing for old and vunerable people though. I would like a progressive tax as you say, but also a interest free grant for insulation, the cost of which is gradually taken from the energy bill. Both these would encourage energy conservation.

fxMark

Gas has followed the Crude Oil price and commodity's have strengthened mainly due to the weakness in the $. If this link continues then the $ is probably at the start of a recovery cycle so this should at least have put a top on oil and gas prices. Oil is currently down $2 so far today.

Kimitatsu

Oil and gas prices are down but it is August not February.

Most of us do not have any heating on at this time of year, we dont have the lights on for as long and cooking a hot meal every day is not always important.

In the winter when we have heating lighting cooking costs then the spot price of gas goes up which is passed on to the consumer. If you want accurate data then look at the wholesale gas price over a 12 month period rather than just three weeks of the summer, and compare it to thix year. You will find that the cycles follow a similar pattern, with gas and oil being more expensive throughout the winter months.

sarahblue_2

how soon will it be before the gas co's are forced (by public, or govt) pressure to bring prices down in line with wholesale (their main reason for hiking prices!) , or at least reverse the recent devastating rises?

Kimitatsu

The government cannot force the gas co's to lower their prices as they are privately owned - they are owned by their shareholders. The only thing the govt can do is impose a windfall tax which will not benefit the consumer in any way.

BexTech

amcluesent wrote: »

>I feel sorry for the CAP THEM NOW crew<

Well that depends. I made a 'mistake' in my readings of the meters, so pre-paid for a few months of consumption at the old-tariff. My capped tariff has no exit penalty, so if it pays me, I'll just go back with no harm done.

Same here, we made the same mistake, however we only capped the electricity as there was virtually nothing in it compared to the cheap tariff we were already on, a few pound over the year - so would have been stupid not to cap.

However we haven't capped the gas, as that was double figure %-age increase difference. We will ride that one out and we can more easily reduce gas usage than electricity usage.

There is no exit fee on our capped tariff, so it's a win - win option.