Proposed BG gas increase

Alan_Wednesday

My thanks to Martin for the letter to BG customers, however there are other factors that should lead MSE to lobby for prevention of the rise.


BG admit that their material prices have gone down and blame the increase on transmission costs and the cost of implementing Government environmental requirements. Ofgem however state that transmission costs are static and that the cost of the latter is only 2%, not !2%.


It could be argued that this environmental aspect is the companies liability anyway, their profits are more than adequate to cover these and they morally should wish to improve the environment, instead of suppressing innovations in favour of fossil.


Many now find fuel bills prohibitive and have to juggle commitments to the detriment of other vital needs. BG attitude towards'late' (ie. paid when possible) payments results in 'fines', for which they have no mandate or contract, pushing costs higher for those in poverty.

System

From a post that I made yesterday: (Environmental and social costs are mainly imposed on suppliers)

quote:

The cost of green taxes on energy bills will more than treble over the next five years, the official economic forecaster has said.

The Office for Budget Responsibility said that cost of the subsidies, which are levied on household and business energy bills, is expected to rise from £4.6billion in 2015-16 to £13.5billion in 2021-22.

It comes after British Gas claimed that green taxes will cost households £150 from next year as it blamed the Government for a huge rise in electricity bills.

British Gas forecast that the cost of the subsidies, which are used to fund renewable sources of energy such as wind and solar, will hit £149 next year having risen by by two-thirds since 2014.

It announced that 3million of its customers on a dual fuel standard variable tariff will see their bill rise by an average of £76 to £1,120.

The figures will add to mounting tensions in the Conservative Party over the current push for renewable energy.

Quote

Source: Daily Telegraph et al- 2 Aug 17

Have a read. Wholesale energy costs now contribute less than 40p in every £1 to your bills:

http://www.energy-uk.org.uk/customers/about-your-energy-bill/the-breakdown-of-an-energy-bill.html

Alan_Wednesday

Ofgem disagree over envirnmental cost, anyway shouldn't that come from BG profit, why should we pay for infrastructure improvements ?

Incidentely, isn't the removal of the dual fuel discount just a poke in the eye ?