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SSE raises energy prices 8.2% just before winter....again.
Comments
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If I remember rightly, either this or the last government (probably the latter) sold or didn't invest in storage facilities so the UK as a nation now has to pay a premium for gas when supply is tighter.I would guess, but in truth don't know, that their government forces them to hold that level of storage
the UK government makes no demands on the suppliers: there is no requirement for the energy companies to ensure security of supply.0 -
If I remember rightly, either this or the last government (probably the latter) sold or didn't invest in storage facilities so the UK as a nation now has to pay a premium for gas when supply is tighter.
no government since privatisation, have put a duty to ensure supply on the companies nor have they funded any storage themselves; nor as far as I know, does any party have any plans to do so.0 -
Centrica say otherwise Mr Clactonno government since privatisation, have put a duty to ensure supply on the companies nor have they funded any storage themselves; nor as far as I know, does any party have any plans to do so.
http://www.bbc.co.uk/news/business-24207586The company said it would not construct the facilities, in Caythorpe in East Yorkshire and in the North Sea, because the government had decided not to subsidise new gas storage.0 -
show me the reference to the government original funding facility0 -
Do I have to do everything for you Clactonshow me the reference to the government original funding facility
http://www.bgs.ac.uk/research/energy/undergroundGasStorage.htmlIn December 2006, the energy minister at the time, Lord Truscott, announced that £10 billion was to be spent on gas storage infrastructure in the period 2005–2010. Most of this will be spent on UGS space, but investment is being held up by the objections and doubts raised over the geological suitability of most proposals.
The investment never happened.
People usually pay good money for the way you are being educated tonight.0 -
I didn't say I had any idea about future prices;
what I'm saying is the energy (nuclear) suppliers are not confident they will make a profit over the next 30 years or so:
I conclude that is because they fear there will be cheaper sources of energy.
The French seem to like it. Any idea if they make any profit on it?
I would hazard a guess that if all costs of nuclear were encompassed it could never show a profit as the run costs of waste storage are open ended and unquantifiable.
Giving the French,Chinese 2x the current market rate as a guarantee will not be the end cost to the consumer or taxpayer.
The price the consumer pays will be "managed" to ensure that regardless of the cost it aligned to these targets. It will be governed by the basket of supply not the cheapest component.
We don't want nationalised industries but it is OK to use those of other countries - bizarre."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Do I have to do everything for you Clacton
http://www.bgs.ac.uk/research/energy/undergroundGasStorage.html
The investment never happened.
People usually pay good money for the way you are being educated tonight.
If gas is always cheaper in the summer and more expensive in the winter it is strange that it does not make economic sense for a private company to build a storage facility, i guess the price differential is not high enough and thus it will only happen with govt investment representing the national security of supply (non-market) value of having such a facility.I think....0 -
If gas is always cheaper in the summer and more expensive in the winter it is strange that it does not make economic sense for a private company to build a storage facility, i guess the price differential is not high enough and thus it will only happen with govt investment representing the national security of supply (non-market) value of having such a facility.
From my relative source I believe there has been a bit of bartering going on.
The energy companies basically expect the government to foot the bill for additional storage.
In a volatile gas market it's not clear if building a gas storage facility will turn a profit.
There are a few gas power stations built in recent years which are struggling to show a profit. Once a supplier falls foul of this they tend to be wary.
When the Nuclear bidders dwindled down to 2 then 1, the last remaining bidder was holding out for long term subsidy significantly higher than being offered by the government.
This whole energy market doesn't feel like a free market operation to me.0 -
Unfortunately it's become a political game in my opinion where companies won't invest unless the government contributes or funds it. If they don't provide funding then they pass these increased variable/seasonal costs onto customers and blame the government.If gas is always cheaper in the summer and more expensive in the winter it is strange that it does not make economic sense for a private company to build a storage facility, i guess the price differential is not high enough and thus it will only happen with govt investment representing the national security of supply (non-market) value of having such a facility.0 -
Unfortunately it's become a political game in my opinion where companies won't invest unless the government contributes or funds it. If they don't provide funding then they pass these increased variable/seasonal costs onto customers and blame the government.
one might reasonably conclude the energy companies don't invest in gas storage because they don't make sufficient profit from it.
no politics, just profit and loss a/c0
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