BG announce 10% price cut.

1carminestocky

Calculating what the rest of Europe or indeed most other countries in the World pay for gas/electric by way of the exchange rate trick is ridiculous. Our economy is currently the sick man of Europe and consequently our pound has taken a real hammering against most other currencies (especially the dollar and euro). This leads some to suggest that this means that the rest of Eurozone are paying considerably more for their domestic fuel than us. Nonsense of the highest order.

The only REAL way of comparing energy costs in different countries is to take an average level of annual fuel bill and display it as a percentage of average annual take home pay. And that's a fact.

Cardew

housebug wrote: »

As with most things in the U.K., energy prices will continue to be significantly higher than they are elsewhere in the West. This is a historical fact and the solution to that is more than I can fathom out.

That is simply not correct!

UK Gas and Electricity prices(particularly gas) have always been amongst the cheapest in western Europe. The exception being night electricity rates in France for heavy users.(you can't switch off their Nuclear power stations.

The problem is the exchange rates can distort price comparisons. In fact the recent dramatic fall in value of Sterling against the Euro and Dollar makes their energy prices appear even more expensive.

For instance I have an electric only property in the USA and I pay approx 13 pence a day in charges and 8.7p/kWh at today's exchange rate.

Last summer whilst the US$ prices were the same, at the then exchange rate this was 8.7p daily charge and 5.9p/kWh.

kjsmith7

I thought this was the case -- my grandfather pays much higher prices in Spain than we do here.

1carminestocky

kjsmith7 wrote: »

I thought this was the case -- my grandfather pays much higher prices in Spain than we do here.

But does he? Really?

A_fiend_for_life

The biggest cost in most businesses, at least so I'm told is wages. Cost of energy probably reflects average earnings in western countries.

1carminestocky

A_fiend_for_life wrote: »

The biggest cost in most businesses, at least so I'm told is wages. Cost of energy probably reflects average earnings in western countries.

Sort of the point I'm trying to make. Comparing the 'cost' of products in different countries by doing a simple exchange rate calculation is silly - but often used by people to try and prove their 'we have the cheapest gas/electric in Europe' nonsense mantra. The ONLY way to compare is to see the annual liability for dmestic as a percentage of average annual pay in that particular country.

PS The only way our pound dying on its @rse impacts the prices paid by people in other countries is the ex-pats who have maybe retired abroad and still get paid in pounds.

kjsmith7

1carminestocky wrote: »

PS The only way our pound dying on its @rse impacts the prices paid by people in other countries is the ex-pats who have maybe retired abroad and still get paid in pounds.

Which is my grandfather. But even before the pound really began to drop, he worked out that electric was costing him roughly 1/3 more a year, and that was before he had air conditioning installed (lucky fella to need it!)

1carminestocky

kjsmith7 wrote: »

Which is my grandfather. But even before the pound really began to drop, he worked out that electric was costing him roughly 1/3 more a year, and that was before he had air conditioning installed (lucky fella to need it!)

Yes, but that's because he gets paid in pounds. The vast majority of people living/working in Europe get paid in Euros and our pound plummeting has not the slightest impact on what they are paying for fuel.

A_fiend_for_life

I agree! (Though I would correct my post slightly as ultimately all costs are wages).

kjsmith7

1carminestocky wrote: »

Yes, but that's because he gets paid in pounds. The vast majority of people living/working in Europe get paid in Euros and our pound plummeting has not the slightest impact on what they are paying for fuel.

I said 'even before' But yes, he has noticed it even more now that he gets "less" for his pounds.