Wholesale natural gas falls below 40p therm for first time since sept 07

1carminestocky

Mazio wrote: »

The other problem for utility companies is as we insulate more and get better efficient equipment they will have to increase prices to keep their shareholders and management bonuses up.
We will always pay the same (if not more) for power as they will have to sustain their profits.

I put forward the very same theory on here a few months ago. In some respects, whilst we have the current energy industry set up, in the medium to long term my feeling is that the more people insulate their homes, the more they will pay per unit of gas, thereby wiping out the expected savings! Which, sort of, defeats the whole object of the excersise (unless you subscribe to the global warming 'myth')...

savers_united

Mazio wrote: »

The other problem for utility companies is as we insulate more and get better efficient equipment they will have to increase prices to keep their shareholders and management bonuses up.
We will always pay the same (if not more) for power as they will have to sustain their profits.

The energy companies know their spell of high prices are coming to an end, just dragging their feet in lowering prices.
Even resorting to longer term market to justify their continued high prices, http://news.bbc.co.uk/1/hi/business/7899630.stm

They know short term prices will have to fall and it is quite obvious that prices will rise over the long term as supply gets weaker, however we are here and now not 5 years down the road.

I love the way that they wack prices up when short term prices increase but then take an age to lower prices when short term they have fallen dramatically.

Just remember these same people last year were threatening 30% further rises over the next 12mths, they could not of been more wrong, it was wishful thinking by themselves to please shareholders.

Oil will rise but will take a long time to get to its record highs during 2008, it was a speculative bubble thats all.
Oil will be good for $100 over the next 5 years.

1carminestocky

Companies like British Gas basically cannot lose. If the wholesale prices are high their 'upstream business' rakes in crazy profits and its (lesser) residential profits are then used to in some way to suggest we aren't getting ripped off as consumers. Don't fall for it.