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MSE News: Guest Comment - Why are energy prices increasing?
Former_MSE_Guy
Former MSE 1.7K Posts
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 ..."
"Utilyx energy expert Andrew Horstead says Britain is facing an energy 'trilemma' and consumers stand to pay the price ..."
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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.
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.
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
I think this is what happens when you run essential services like a market stall in a free market.
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.
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)
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)
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 )
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.
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!
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.
If that is not profiteering, I really don't know what is.