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MSE News: Guest Comment - Why are energy prices increasing?

edited 30 November -1 at 12:00AM in Energy
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MSE_GuyMSE_Guy MSE Staff
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edited 30 November -1 at 12:00AM in Energy
This is the discussion thread for the following MSE News Story:

"Utilyx energy expert Andrew Horstead says Britain is facing an energy 'trilemma' and consumers stand to pay the price ..."
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Replies

  • ConsumeristConsumerist Forumite
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    OK the energy trilogy has now spoken. What has it said?

    1. British Gas: We're only charging customers what it costs us for energy; we're not profiteering.

    2. Ofgem: Not sure about what British Gas says above; can we get back to you on that.

    3. The green lobby: Don't worry about the current high price of energy cos when we get more green energy it's gonna cost you a fortune anyway.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • edited 11 July 2011 at 7:52PM
    davidgmmafandavidgmmafan Forumite
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    edited 11 July 2011 at 7:52PM
    This is the most sensible article I've seen for some time well done. I know its fun to cry that we are being ripped off but its good to remember there are facts behind it.

    I remember being stunned when I read once that the UK had something like eight days of gas storage where other countries have loads more.

    Ps I can see where the green people are coming from, but I honestly think expansion of this sector is only going to make prices go up. If the rates is guaranteed at over 40p per unit for so called sustainable energy, and the company is selling it for 10-15 pence per unit I don't see how you can square the two without further massive price hikes.
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  • martinthebanditmartinthebandit Forumite
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    Rising energy bills? Its all nonsense apparently, don't know what everyone is getting worked up about

    http://www.spectator.co.uk/coffeehouse/7087828/huhne-poohpoohs-rising-energy-bills-as-nonsense.thtml

    of course he is a multi millionaire so may not have exactly the same view point as most of the rest of us ;)

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  • I remember being stunned when I read once that the UK had something like eight days of gas storage where other countries have loads more.

    I think this is what happens when you run essential services like a market stall in a free market.

    Ps I can see where the green people are coming from, but I honestly think expansion of this sector is only going to make prices go up. If the rates is guaranteed at over 40p per unit for so called sustainable energy, and the company is selling it for 10-15 pence per unit I don't see how you can square the two without further massive price hikes.

    I don't think all greens support energy generation on such a small and over subsidised scale. Certainly not one where you can have your cake and eat it.
    PAD to date: £1166-22

    Pay off as much as you can #127: £4,600 (£2,300 debt / £2,300 saved)in 2011.£660 / £4,600.(debt paid 28.7%; target 14.3%).

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  • There was no mention of social tariffs and payments in the article.
    PAD to date: £1166-22

    Pay off as much as you can #127: £4,600 (£2,300 debt / £2,300 saved)in 2011.£660 / £4,600.(debt paid 28.7%; target 14.3%).

    Sealed pot challenge 1292: £0 (target £600 by 31-12-11)
  • Important update! We have recently reviewed and updated our Forum Rules and FAQs. Please take the time to familiarise yourself with the latest version.
  • bengasmanbengasman Forumite
    601 posts
    OK the energy trilogy has now spoken. What has it said?

    1. British Gas: We're only charging customers what it costs us for energy; we're not profiteering.
    If they only charge us what it costs, how come they made a record profit in the height of recession when almost all of us were hurting?
    Did I dream it, or were there big items in the news that they made over £1000,000,000 profit? ( yes, that is right, over one thousand million )
  • slenderkittenslenderkitten Forumite
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    i don't believe for 5 seconds that the prices have gone up, its just a game to get us to pay more, compared to 5 years ago my payments were £13 weekly now they are £22 a week and i used more energy 5 years ago as i was not in a full time job. yes i do have an energy monitor on and i switch everything i don't need on; OFF!

    YOU WORK THAT ONE OUT! - they are ripping people off for no good reason
    My Signature is MY OWN!!
  • edited 12 July 2011 at 10:55AM
    posh*spiceposh*spice Forumite
    1.4K posts
    edited 12 July 2011 at 10:55AM
    i don't believe for 5 seconds that the prices have gone up, its just a game to get us to pay more, compared to 5 years ago my payments were £13 weekly now they are £22 a week and i used more energy 5 years ago as i was not in a full time job. yes i do have an energy monitor on and i switch everything i don't need on; OFF!

    YOU WORK THAT ONE OUT! - they are ripping people off for no good reason

    No. We passed peak gas in the north sea in 1999. Gas depletes very quickly. In the last year natural gas coming out of the North Sea has depleted by 20%. We have to import that lost gas. Hence the hike in your gas bills. Also many UK electricity power stations are powered with gas. Hence the hike in your electricty bill.

    Exports_BP_2009_gas_m3_GB_MZM_NONE_auto_.png

    http://en.wikipedia.org/wiki/Peak_gas


    The UK has been enjoying an energy party from the North Sea. What the politicians don't want to tell you is the party's over! We've emptied the North Sea of Gas and Oil - there's nothing left!
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  • JSRJSR Forumite
    187 posts
    i used more energy 5 years ago as i was not in a full time job.

    YOU WORK THAT ONE OUT! - they are ripping people off for no good reason

    These are British gas profits since five years ago. The figures in brackets are inflation adjusted (link).

    2006 £640m (£758m)
    2007 £571m -11% (£649m)
    2008 £379m -34% (£414m)
    2009 £598m +58% (£652m)
    2010 £742m +24% (£742m)

    It does not look like a company that is profiteering. The profits are just volatile. Large gains but also large falls. The real terms profit from five years ago are more than this year's despite the unusually cold winter.
  • bengasmanbengasman Forumite
    601 posts
    JSR wrote: »
    These are British gas profits since five years ago. The figures in brackets are inflation adjusted

    2006 £640m (£758m)
    2007 £571m -11% (£649m)
    2008 £379m -34% (£414m)
    2009 £598m +58% (£652m)
    2010 £742m +24% (£742m)

    It does not look like a company that is profiteering.
    During the the height of the recession, the profits went up by 58% in one year, whilst the man in the street was suffering.

    If that is not profiteering, I really don't know what is.
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