Watchdog - Energy prices are still too high

Geoffo_M

roddydogs wrote: »

Why would you want to watch "Watchdog"? the increases/low reduction are well discussed by Martin on this website

'Watchdog' reaches a far greater audience. All those who don't have internet access, for example. Also, although "the increases/low reduction are well discussed by Martin on this website", it can hardly be described as effective!

Geoffo_M

savemoney wrote: »

The guy who represents the industry said "that price for all customers will be lower in April". I recall that because mine haven't come down at all accept usage that is.

Although he never stated which April

What small reductions that are coming in April is limited to electricity. And 10% is rubbish (mine works out at 3.2% - many regions don't benefit at all). Why didn't Nicky Campbell grill him on why electricity will be reduced a tiny bit - and gas not at all. I see also yesterday Ofgem announced they can find no evidence of a cartel. What a surprise that is

1carminestocky

savemoney wrote: »

The guy who represents the industry said "that price for all customers will be lower in April". I recall that because mine haven't come down at all accept usage that is.

Although he never stated which April

They always used the argument that prices are higher because of the rise in wholesale oil prices which are linked. Now they say its because they buy well in advanced so we dont get the peaks and troughs. Now if they buy in advance surely prices will be much lower later this year

You would think so, wouldn't you? But it seems like pricing logic isn't something that pervades the boardrooms of our energy suppliers. They will probably say later this year that, sorry, we had to buy in advance when the prices were still high so tough. We'll try better next time. The length of the 'advance buying' seems to be getting longer commensurate with the drop in wholesale prices. Funny that.

Ps Whatever happened to the 'price of gas linked to price of oil' theory?

mech_2

savers_united wrote: »

Hard to predict but if we stay at current wholesale levels it is inevitable, if it continues there may be further cuts early 2010.
I know its looking quite far ahead but the energy market at the moment is in freefall with no signs of recovery in sight, dont think it will improve until at least mid 2010.

Are you sure? I think oil showed us the bottom of the market around Christmas and it's currently on an upswing. UK gas has shown us the bottom of the market over the last month or so and is off its low now (because oil is).

I'm expecting the winter wholesale prices to be 60 to 80 p/therm by the autumn.

Premier_2

savemoney wrote: »

The guy who represents the industry said "that price for all customers will be lower in April". I recall that because mine haven't come down at all accept usage that is...

Yes, I've pointed out elsewhere for example that some Scottish Power customers will not see any reduction in their electricity prices, despite they claiming they will drop "on average" by 3%.
EDF will only be cutting their electricity prices in certain regions (and they are not dropping their gas prices at all)

I would think these 2 companies are not alone in only offering some people discounts (and I'm ignoring those on fiixed price deals for obvious reasons)

The suit was Dr Garry Felgate from the Energy Retail Association.
Perhaps he should get his facts correct before he starts asserting them on TV.

teddyco

Does anyone have an opinion on the recent LNG shipment that arrived at Milford Haven last week? Will this new source of Liquid Natural Gas have an impact on energy prices or not?

I'm pessimistic that it will really make a difference, but am I wrong?

Any thoughts?

savemoney

It would be nice of it did lower prices, I doubt it will be glad to be wrong just as long as prices are lower.

teddyco wrote: »

Does anyone have an opinion on the recent LNG shipment that arrived at Milford Haven last week? Will this new source of Liquid Natural Gas have an impact on energy prices or not?

Being the cynic that I am, I am not holding my breath, but am I wrong?

Any thoughts?

teddyco

savemoney,

Google returned this article from the Times:

http://www.timesonline.co.uk/tol/comment/leading_article/article5962542.ece

From that article, I was able to glean this bit of information that I believe might offer some insight into possible energy price reductions.

"The importance of reliable supplies should not be underestimated. Britain saw last year how volatile prices were when there was a brief interruption in gas flows through the interconnector pipeline from Europe. Albania and Ukraine found all too clearly what a disruption to their gas supply means - a very cold winter. Now, with the pipelines under domestic control, Britain should not be held to ransom by any spat with Russian gas producers. Milford Haven has changed the equation. There were concerns over safety. But, in the longer term, the safety of Britain's energy is more assured."

Premier_2

I think we've had all the energy price cuts we're going to see this year

Some suggest that as early as 2010, domestic energy bills could start to rise again.
"With uncertainty about the supply of imported gas and a decline in the amount of generation capacity, it is likely that prices will be pushed back up in the longer term," said Mr Parrett.

This echoes comments made by Ian Marchant, chief executive of Scottish and Southern Energy, to a committee of MPs earlier in February.
He said wholesale energy prices for summer 2010 were about 10% higher than they were now.

http://news.bbc.co.uk/1/hi/business/7899630.stm

"I would have expected us to see another round of decreases [in energy bills] later this year or early next year, but objective analysis suggests that this might not happen."

http://news.bbc.co.uk/1/hi/england/7886770.stm


... not to mention that the same Mr Marchant has promised his shareholders

a rise of at least 9.1% in their annual dividend payout.

http://www.switchwithwhich.co.uk/energy_advice.php?m=energynews Friday 6 Feb 2009

adprob

1carminestocky wrote: »

You 2 should count yourselves lucky that mech seems to be either on holiday or has left the site or you would be staring at a very complicated graph or 2 now attempting to show you the error of your ways. Naughty boys.

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