MSE News: Government minister: 'Gas price hikes show market's working'

hazdriver

andymd wrote: »

I think his point is there was a shortage of gas, the price went up attracted other sources of gas and enough gas was supplied and the price fell again. This does mean the market is working.

In Summer months (if they ever arrive) the price falls and encourages people to buy and put into storage in time for the next winter. All signs of a functioning market.

And despite scare stories from uSwitch and others, the lights didnt go out and energy companies didnt increase prices just because it was cold (yet)

It's popular to bash the government/energy companies whatever thye say/do but we still have some of the cheapest gas prices in Europe. The trouble is we still use far too much of it and people have to take some responsibility for reducing their consumption.

The government/energy companies were providing insulation last year and so many people ignored this free help, yet still complain they can't afford to heat their homes. If it is really that bad, surely they would take any help going.

And WHO pray tell actually funds this "free" insulation,why us the consumers of course

itstoughoutthere

This is an interesting thread and I'm learning how energy prices work so thanks to the concerned and the reassured.
I do wonder though: if we all cut our usage and acted on the various energy saving plans and ideas, wouldn't we ultimately end up back in the same positon as now? After all, these are businesses and businesses want us to use more not less of their products? If consumption decreased significantly it would hit profits and surely prices would then increase to protect falling margins. Wouldn't they? I'm happy for anyone to explain to me why that couldn't happen (but keep it simple for me)!

Pincher

The precendent has now been set in Cyprus.

They just have to raid the bank account of Phil Bentley and other bonus boys, and then re-distribute them in the form of Winter Fuel Allowance.

Reverse Robin Hood manoeuvre?

MillicentBystander

Lol. I would imagine what he has in his account at the moment would fund very many winter fuel payments.

British Gas boss Phil Bentley saw his total remuneration leap to £3.1m in 2012 from £2.1m a year earlier.

http://www.morningstaronline.co.uk/news/content/view/full/131084


All that for running surely one of the easiest businesses to run. Wow.