'Gas to flow' after Moscow deal

basmic

http://news.bbc.co.uk/1/hi/world/europe/7834796.stm

'Gas to flow' after Moscow deal

The Russian and Ukrainian prime ministers have struck a deal to resume Russian natural gas exports to Europe via Ukraine as soon as Tuesday.

Vladimir Putin and Yulia Tymoshenko reached the agreement after a day of delicate talks in Moscow.

Under the deal, Ukraine will start paying for Russian gas at the much-higher European prices from next year.

So, I wonder how this will affect our energy prices? Will the providers start dropping prices, as planned early this year? Or will they use this as a convenient way of keeping the prices high?

1carminestocky

I suspect the energy suppliers will have called in their PR and Marketing Dept today to get cracking on their next excuse as to why prices shouldn't be tumbling now. Any ideas what it will be? Virtual bottle of champagne (OK, cava, these are austere times) to the poster with the most imaginative and/or funny one.

My attempt would be they will say that they buy their energy in advance and it just happened to work out that they had to buy the next tranche just as the Moscow Gas Crisis put wholesale prices up for a few days. But as long as wholesale gas prices stay low until Summer 2012 prices will come tumbling down to celebrate the start of the Olympics (meaning the organisers will be able to afford to have the flame lit for the whole duration........of the opening ceremony).

Ken68

The benchmark for the Big 6 profits are the years when they made the best margins, anything else is a loss, so they will also have their cost accountants calculating the bill to recover same.
Having Ofgem and Putin and the EU commission to deal with just gives them an opportunity to play one off on the other. Plus of course new 'nPower type' sculpting to get their teeth into, wrapped up different tho, cos they got found out first time.
Any grants to poor users are already being recovered from the richer customer, so that's covered.
That is why the peeps get paid a million a year, to think up things.
The only way to win is not to buy the product.

1carminestocky

Ken68 wrote: »

The benchmark for the Big 6 profits are the years when they made the best margins, anything else is a loss, so they will also have their cost accountants calculating the bill to recover same.
Having Ofgem and Putin and the EU commission to deal with just gives them an opportunity to play one off on the other. Plus of course new 'nPower type' sculpting to get their teeth into, wrapped up different tho, cos they got found out first time.
Any grants to poor users are already being recovered from the richer customer, so that's covered.
That is why the peeps get paid a million a year, to think up things.
The only way to win is not to buy the product.

Agreed. Only problem being they sell a prouduct that everyone needs as opposed to merely wants. That's why the industry should not be in private hands IMO...but that's an argument for a different thread, I'm sure.

KimYeovil

Ken68 wrote: »

[...]
Any grants to poor users are already being recovered from the richer customer, so that's covered.[...]

They are not recovered from richer customers. They are recovered from customers who do not qualify for grants, many of whom are significantly poorer than those who receive them.

1carminestocky

Ken68 wrote: »

Any grants to poor users are already being recovered from the richer customer, so that's covered.

Reminds one of Ebico!

KimYeovil

1carminestocky wrote: »

Reminds one of Ebico!

Reminds one of cashback scams. Except it isn't just the heavier users that are fleeced.

1carminestocky

KimYeovil wrote: »

Reminds one of cashback scams. Except it isn't just the heavier users that are fleeced.

Great point and very well made, KY :beer: . Enjoy the rest of your evening.