Scottish & Southern Energy to reduce gas & electricity prices

melbury

I have been waiting full of anticipation wondering how much Southern Electric will cut prices by and just can't believe that it is by so little - it's a total joke! How can they get away with only cutting 4% off gas prices after the increases we suffered last year when "gas prices were linked to oil prices"

NPowerUser

alared wrote: »

There won`t be any moaning if the prices go down the same amount as they went up.
They kept putting them up saying it was all linked to the price of oil but oil has come down 60% from it`s peak.

Gas and leccy up 50% and now a cut of 4% and 9%
I think they`re taking the p*ss

I must admit that I had trouble keeping a straight face when I discovered the rate cuts.

When Gordon Brown was threatening to take action against suppliers that witheld timely cuts in November/December, do you think 4% and 9% were the cuts he and the rest of us were hoping for?

MrsBartolozzi

I read the statement on their website and hope that the 9% saving for "average" customers is like the "19% hike for average customers" they gave us last year. My leccy went up by 33% so maybe I'm in for a 20% (or more)decrease???

As if.

OldGreyFox

Woby_Tide wrote: »

another Quidco cashback opportunity, marvellous

How?

mech_2

alared wrote: »

The problem in this country,apart from the rip-off energy big six not competing,is the lack of storage facilities.

We get the gas from the north sea,sell it to Europe because we can`t store it and they can.
Then when we want to buy it back when needed they charge us twice the price!

I don't believe this happens at all. Please post some evidence that happens which isn't a tabloid newspaper.

mech_2

prudryden wrote: »

This was on another thread, but thought I would repeat it here.

Natural gas prices have fallen more than 65% from the July 2 peak of $13.694 a million British thermal units

Oh god. Here we go again... No they haven't! Those American prices. We pay UK prices. Look up UK prices.

and oil prices have plunged more than 70% since peaking above $145 a barrel.

Brent crude has fallen 67% in dollars or 56% in pounds sterling. That's from a brief peak though. It's more expensive than it was 2 years ago. Also, in 2007 UK gas was trading at a 20p/therm discount to oil. The prices right now are slightly elevated relative to oil.

The question is, what do you expect that information to tell you? What, in arithmetical/historical terms is the link between dollar oil prices and UK retail gas prices? Figure that out and you will have a much better argument.

However I must say I would have expected the retail price falls to have been larger and sooner, and only 2 of the big 6 have made any announcements at all. It's all a bit disappointing.

prudryden

Which Brent crude chart are you looking at? On the chart I am looking at you have to go back to Jan 2004 to get to the same prices as now. The US has an abundance of natural gas - so much so that the stock prices of their biggest producers have collapsed. E.Q. Chesapeake Energy (the biggest), their stock has dropped from $75 in July to $17 (recent rally from $9.84).

The link is that UK energy firms can buy cheap gas (in $ OR £ terms), but don't pass it on to the consumer.

bockster

to put it mildly, i'm disapointed.

imo they had a good reputation for price and customer service...

...i had a rant in my head but it,s gone, i'm lost for words....4%....like someone said.....it,s taking the pish

mech_2

prudryden wrote: »

Which Brent crude chart are you looking at? On the chart I am looking at you have to go back to Jan 2004 to get to the same prices as now.

I'm looking at the figures from http://tonto.eia.doe.gov/dnav/pet/pet_pri_spt_s1_d.htm with corresponding USD/GBP exchange rates applied to it. 06/02/2007 it was £29.47 per barrel. Today Brent was around £30.20. Six months of UK gas futures was averaging 30p/therm then. It's currently around 60.

The US has an abundance of natural gas - so much so that the stock prices of their biggest producers have collapsed. E.Q. Chesapeake Energy (the biggest), their stock has dropped from $75 in July to $17 (recent rally from $9.84).

The link is that UK energy firms can buy cheap gas (in $ OR £ terms), but don't pass it on to the consumer.

We can't buy huge quantities of American gas as the means to get it here isn't in place. The UK has been building LNG terminals, but to get US gas would mean the US building a necessary capacity of corresponding export terminals. And then we'd be looking at world LNG prices, not Henry Hub prices anyway because we'd be bidding against the rest of the world. The chances are that if the US had an export market for all that gas, the price wouldn't be that low in the first place. Have a look at Japanese LNG prices.

alared

mech wrote: »

I don't believe this happens at all. Please post some evidence that happens which isn't a tabloid newspaper.

Are you saying the newpapers are telling a pack of lies as well as an MP?.


http://www.dailymail.co.uk/news/article-1112209/Our-gas-bills-soaring---sell-supplies-cheaper-Europe.html

Energy firms are keeping prices artificially high by exporting gas from Britain to mainland Europe.
The unusual move comes during one of the coldest winters in years.
A pipeline under the English Channel is being used to pump 30.5million cubic metres of gas to the Continent every day this week - with each day's exports equivalent to 7.5 per cent of the UK's daily requirements.

The rules of supply and demand suggest the move will keep wholesale prices in Britain artificially high, maintaining punishing bills for families and businesses.
Labour MP Lindsay Hoyle, a member of the House of Commons business select committee, condemned the practice.
He said: 'It is truly bizarre that the country is exporting gas in the midst of an extremely cold winter, particularly when we have seen record increases in gas prices over the last 12 months.
'If the country does have a surplus of gas this winter then it should be supplied to UK consumers at a fair price, rather than being exported to Europe.
'The evidence suggests these firms are chasing higher prices. These companies are about maximising profits rather than serving consumers.