MSE News: Power prices now UK consumers' biggest worry

paulmapp8306

NPowerUser wrote: »

Oil prices are falling faster than many expected
http://www.oil-price.net/

Great news, as rising oil prices were one of the trotted out excuses for rising energy bills.

Lets hope a big fall in gas and electricity prices kicks in sooner rather than later!

Doubtfull. One of the biggest reasons for high prices int he UK is the government signing up to renewable energy targets. This has forces power companies to generate a % from renewables - which while good for the environment are a LOT more expensive than traditional methods.

Also - the biggest reason for high prices quoted by companies was "the cost of wholesale energy" NOT "Oil". Given on a fraction of the UKs electric production comes from oil - with far more still from coal/gas/neuclear/renewables (combined), a fall in oil prices is not going to affect electric prices much.

Despite anything else - when wholesale prices go up so do costs to the consumer - when they go down costs dont, or when they do they react much slower and not to the same extent. Capitalism unfortunately.

Until the government caps prices were in for a hard time

NPowerUser

paulmapp8306 wrote: »

Given on a fraction of the UKs electric production comes from oil - with far more still from coal/gas/neuclear/renewables (combined), a fall in oil prices is not going to affect electric prices much.

Gas prices seem to be linked more to the price of oil.

This report of about 10 days ago suggests that price outlook for gas was "bearish". Winter gas contracts had fallen 12% since March 2012.
http://www.lse.co.uk/FinanceNews.asp?ArticleCode=yo8ky0iuurhif0u&ArticleHeadline=UK_spot_gas_prices_drop_on_warmer_weather