MSE News: Energy prices set to keep rising, Ofgem warns

edited 30 November -1 at 1:00AM in Energy
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Former_MSE_HelenFormer_MSE_Helen
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edited 30 November -1 at 1:00AM in Energy
"Ofgem has warned of higher energy prices as power plants close, foreign gas supplies shrink and demand increases..."
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Energy prices set to keep rising, Ofgem warns

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  • Oh dear, oh dear.
  • oldskoo1oldskoo1 Forumite
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    So all this time we have been subsidising alternative energy, have they got anything to show for their billions yet?

    It is going to put people into even deeper poverty. Everyone relies on fuel, the entire cost of living will go up.
  • EcodaveEcodave Forumite
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    oldskoo1 wrote: »
    So all this time we have been subsidising alternative energy, have they got anything to show for their billions yet?

    It is going to put people into even deeper poverty. Everyone relies on fuel, the entire cost of living will go up.

    The big story here is the ever increasing price of traditional energy sources, specifically gas. This is what will push many people further into fuel poverty.

    Now our own resources of gas are coming to an end, we are starting to realise that we never had it so good. Clinging on to gas will only increase our bills. We need to support developing alternative sources of energy more than ever, so that when our gas is gone for good, we are not competing with economies like china, India etc for imports. If you think the price is high now, wait until they really have us by the short and curlies.
  • ConsumeristConsumerist Forumite
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    The bottom line looks like we're all going to have to cut our energy consumption. Unfortunately, that will also push up unit prices further. :eek:
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • jamesdjamesd Forumite
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    Will Ofgem permit retailers to charge a percentage of the total sale price? That will automatically let them make more money fro higher prices. Perhaps restricting the profit to be based only on the services that the retailers deliver themselves would be a useful approach?

    Gas prices have some price pressure due to Japan shutting down most of its nuclear power generation. Competing with that is shale gas from fracking in the US and hopefully soon in the UK as well.

    Ecodave, our gas supplies aren't anywhere near coming to an end, just the North Sea portion. Likely to be plenty available via fracking and with considerably lower visible environmental damage than wind farms.
  • EcodaveEcodave Forumite
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    jamesd wrote: »
    Ecodave, our gas supplies aren't anywhere near coming to an end, just the North Sea portion. Likely to be plenty available via fracking and with considerably lower visible environmental damage than wind farms.

    I didn't realise environmental damage only counted if you could see it:rotfl:

    But seriously, fracking? You would rather have a fracking well down the road from you than a wind turbine?

    You say that the only reserves that are dwindling are the North Sea reserves. Can I point out that these are the only reserves that we currently can exploit. Shale gas has many obstacles to overcome before it can be relied upon. It looks like the government are set on developing these reserves, so it will probably happen, but may not be for a few years yet. Domestic prices in the short to medium term are likely to go far higher, and fracking when it arrives may help keep a lid on prices, but they won't ever be returning to the cheap prices we grew up with. Those days are gone.
  • ChiefGrasscutterChiefGrasscutter Forumite
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    You lot do realise the huge well depletion rates of fracking wells when compared to conventional resevoirs. One is measured in decades and the other in months.
    So fracking requires a high oil/gas price to make it economic as you are continually having to drill new wells - which cost a lot.
  • Dave_saveDave_save Forumite
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    So now it appears Ofgem's role has been devalued into one where all they do is warn us. I wonder how much Ofgem costs, and whether we could do without it, as to me it serves no purpose.
  • edited 19 February 2013 at 11:15PM
    jamesdjamesd Forumite
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    edited 19 February 2013 at 11:15PM
    Ecodave wrote: »
    I didn't realise environmental damage only counted if you could see it
    Both count.
    Ecodave wrote: »
    But seriously, fracking? You would rather have a fracking well down the road from you than a wind turbine?
    Not a suitable site for either but given a suitable distance, yes, fracking is fine. Likely to be a significantly lower visible impact and perhaps lower noise impact. No more bothersome to me than the local nuclear reactors and local gas and oil storage tanks, with me in the emergency alert distance of them.
    Ecodave wrote: »
    You say that the only reserves that are dwindling are the North Sea reserves. Can I point out that these are the only reserves that we currently can exploit. Shale gas has many obstacles to overcome before it can be relied upon.
    Just takes a few years to get it set up here.
    Ecodave wrote: »
    fracking when it arrives may help keep a lid on prices, but they won't ever be returning to the cheap prices we grew up with. Those days are gone.
    Probably won't go back to the prices we grew up with but a look at US wellhead prices from 1920 to 2011 is very interesting, driven in part by increasing production, with the US now a net exporter of gas. Consumer prices were now back to 2004 levels by 2011, while industrial prices are back to 2001.
  • Can I suggest a simple answer to our electricity supply problems?

    We know the largest gas supplies are in Russia. All we need to do is ask Russia to guarantee to supply us with all our gas. If we in return agree to support them in disputes with the EU and UN I am sure they will jump at the chance. Then we can stop trying to produce our own energy from wind, solar, tidal barrages etc, all of which are unpopular with the British public and media. What's not to like?
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