oil prices below $50 a barrel!! still no price cut!!

reactor_3

mech wrote: »

There are a number of flaws in your reasoning.

The most obvious failure of logic lies in the assumption that you can turn one unit of natural gas into one unit of electricity. You can't. Average gas-fired power station efficiency is probably about 50%. Then approximately 7% of the electricity is lost in transmission, so 1 kWh of gas-fired electricity at your meter needs 2.15 units of gas.

Then you have to take into account that the retail price of gas is set at a single level for a sustained period, but wholesale prices vary considerably. The price for gas is based on a predictable consumption curve of central heating use. We can't assume the same curve applies to electricity generated from gas. Especially as gas generated power is one of the methods of generation which can be turned on and off to follow electricity demand. So a direct link between rises in retail gas prices and rises in the wholesale cost of gas used for electricity is not reliable.

Also, only about 40% of our total electricity is generated from gas. The second most common fuel for electricity generation is coal, so without knowing what coal prices did in the same period, we can't draw conclusions.

WE can be pretty sure that neither coal nor nuclear power rocketed in price
by more than gas so if it were coal or nuclear in origin then that would indicate greater profiteering, not less.

lrr_2

Cardew wrote: »

If you read through this forum you will find hundreds of posts giving opinions on when, and by how much, prices should drop.

The arguments are also rehearsed in the media on a daily basis.

I want to hear it straight from the companies - why?
Oil was at a record high months ago and I dont believe for one minute that they stockpilled many months worth at that price, no company would and the 2.5% vat rate cut is nothing compared to massive hikes that have happened in our bills. The vat cut is on things that are not a must, gas/electricity is.

The government want us out spending - I wont be out spending on luxuries until my bills come down.

reactor_3

Yes the companies are massively profiteering, there is no chance of a rise in oil for many years to come. they are really raking it in.
The company bosses must be taking home their bonuses in wheelbarrows and laughing all the way to the bank.
Then they come out with this investment lark - thats what the existing profits should have been used for.
Funny how there was no mention of needing this money before, its only an issue now they should have to cut prices.
They are not building wind farms anyway and those they do build will be mitigated by the powerstations they do not need to replace so it is just a made up excuse to boost their profits - as one would expect.
"maximize shareholder return" is their only motive. - no concern for the public or the countrys wider benefit

logie28

Profit to invest??? lol, my a$$...


https://www.express.co.uk/posts/view/35682/British-Gas-profits-rise-500-

We are reverting back to coal!!! lol, after the pit closures and job losses with that "dirty coal" what do we do with the massive investment from energy companies??? open em back up!!!!lol, soon they will burning £notes , seem as they have so many!!!!!!!

comical,, the above link is only referring to BG,

logie28

BTW this is how much BG made in July.... you know.... at the height of the market.. can any one guess what they did after announcing these obscene profits???
http://theorangepartyblog.blogspot.com/2008/07/govt-just-sits-back-after-gas-price.html

logie28

mech wrote: »

The oil price had been rising consistently for nearly a year back when household energy prices went up in January or February, so on that basis it's a bit unrealistic to expect the retail prices to drop the moment the spot price drops.

The reason for this lag has been covered in this thread already, but you may have missed it if you can't be bothered to read past the first line of each post.

The energy companies where quick to up prices when the rise in market price was dramatic, when it rose at a steady pace they had no need to rise prices, as they was obviously overcharging in the first place, see above link!!

I Dont expect em to drop prices at the moment spot prices drop,, and they haven't, if you cant be bothered to read past the first line in each post and look at links , its no wonder you cant see this!

Prices have been "DROPPING CONSISTENTLY" for months now!!! (and this is when the energy companies said they would reduce prices!" if the price drop was sustained consistently" (not to mention substantially!! ) over a number of months!! or did you not bother to read this either!!!)

Stop making excuses!

Cardew

lrr wrote: »

I want to hear it straight from the companies - why?
.

Then listen to the boss of British Gas - see this thread

http://forums.moneysavingexpert.com/showthread.html?t=1331535


I suspect it will not be a message you will want to hear - and as such will be dismissed.

mech_2

reactor wrote: »

WE can be pretty sure that neither coal nor nuclear power rocketed in price
by more than gas so if it were coal or nuclear in origin then that would indicate greater profiteering, not less.

We can't be sure, because you can't be bothered to find out. If you can't be bothered, then neither can I. I'm tired of supplying information to people with their eyes tightly shut.

1carminestocky

Awww...surely it's time to get the spirograph out again, mech?

mech_2

logie28 wrote: »

The energy companies where quick to up prices when the rise in market price was dramatic, when it rose at a steady pace they had no need to rise prices, as they was obviously overcharging in the first place, see above link!!

It's easy to wind people up with big numbers, but they aren't very useful unless you can put them in some kind of context. You would do better not to rely on newspapers for all your information. Centrica's results are available on their website and then you can see the numbers in context and what they mean.

Did you know Tesco's profits for 2007 were £2.75 billion? Wow, that sounds like a lot.

Prices have been "DROPPING CONSISTENTLY" for months now!!!

No they haven't. Prices for one month gas futures have only fallen consistently from early November. About one month ago.

Three month futures have dropped from a high in early September. So effectively that gas peaks now as far as the consumer is concerned. Six month futures have only been falling consistently for about the same amount of time, but they were already off an earlier high in July which means the heat will be off from January 2009.

Average it all out and it suggests we'll reach the peak in average delivered costs this week. By mid-January the utilities companies will start to make more than their usual level of profit and then is the time to jump up and down shouting and give ourselves a stroke.

(and this is when the energy companies said they would reduce prices!" if the price drop was sustained consistently" (not to mention substantially!! ) over a number of months!!

Clearly this number has to be bigger. I see no contradiction here.

or did you not bother to read this either!!!)

I don't know what you're talking about. I read everything in a thread except posts from the troll. You are the one who gives up at the first paragraph.