Hedging against Gas/Electricity Prices

StrategyMan2006

Hello there,

I Was just wondering if you guys can comment on a strategy which I been thinking about.

We all know gas/electricity/oil prices are rising....leading to increased energy bills for us. Suppose if we were to 'hedge' against this, just like airlines who hedge against oil prices.

Any advice will be appreciated.

asandwhen

oil gas and electric wholesale price is now falling - gas/electric since january this year (we should start seeing it in our bill by the end of the year - oil for the last month has been falling and we are already seeing petrol prices down 10p a litre.

Cardew

asandwhen wrote:

oil gas and electric wholesale price is now falling - gas/electric since january this year (we should start seeing it in our bill by the end of the year - oil for the last month has been falling and we are already seeing petrol prices down 10p a litre.

Perhaps we should run a sweepstake on what the gas/electricity prices will be this time next year?

Personally I think there could be a token cut in prices that will receive huge publicity - followed by a slower upward trend again.

The distribution side of the Utility companies are simply not making money at the moment and British Gas lost £200 million last year. This why loads of the smaller companies have folded.