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Re: The energy crisis
There seems to be two choices, spend billions giving us handouts, or spend billions on buying the suppliers, and then more billions reducing the price we pay.
This assumes the actual gas/electricity will still cost the same for the suppliers to buy, regardless of who owns them. The second option sounds more expensive. |
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As I've said before we shouldn't have squandered our national resources but maybe it's not too late to set up a sovereign wealth fund. Selling every asset the country has is a very short sighted approach and if nothing else we should learn that making a profit out of a public service shouldn't be the be all and end all. Make a profit yes, but let the country as a whole benefit from the profit. Other countries have state owner oil and gas sectors and not all of them have turned out like Venezuela. |
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https://www.thetimes.co.uk/article/2...fa906ca19dc7c0
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There is no "magic" answer. |
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We need to do the things the private sector won’t do - actually satisfy demand removing the price premiums. Wind farms, nuclear reactors, you name it. The problem for the Tories is if the public see this as the way forward for energy what next? Water? Exorbitant costs to have hundreds of thousands of tons of human waste released into rivers and the sea? Telecommunications? Railways? None of these sectors are genuinely competitive marketplaces as understood in economic theory. Nobody can enter these markets easily without significant investment. Meaning incumbents can continue to price gouge end users. |
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Nationalise the sector. Employ the best management, paid at fair free market rates and invest for the long term. It is not rocket science. |
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Not quite sure how any of all that lowers the price of gas and other energy that comes from outside of the UK.
The biggest problem with infrastructure products is the ridiculous amount of time the planning permission process takes. Eg Thames Water have been trying to get permission for creating a new reservoir for over 10 years. The UK has become too much of an undesirable place to do business(nothing to do with Brexit). Just look at all the nasty attention, individuals and businesses get from the media and the public. If I had a great business or technological idea, I wouldn't want to set up in the UK. Too much anti-success sentiment. It's been like that for decades. It you're not trashed by the media and the public, you get trashed by taxes and over regulation, which adds to business costs. |
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Anti success sentiment :rofl: these aren’t entrepreneurs coming up with exciting new ideas. They’ve bought the family silver and charging you just to have a look at it through the window. |
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Private energy companies tend not to invest in long-term infrastructure and energy is a long-term business. If you're overly-concerned about what people think of you, you're unlikely to be a successful entrepreneur. I don't think the UK is anti-success. The grass next door is not always greener. ---------- Post added at 10:56 ---------- Previous post was at 10:53 ---------- Quote:
Water is a lot less complex and is a monopoly at regional level. To not get the basics right here is appalling. In my area, for example, there's a Thames Water leak that's been ongoing for at least three weeks impacting households' water supplies as well as blocking the road and being wasteful. |
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Add all the excessive ongoing leaks and is it any wonder we have a escalating water shortage. |
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Not sure what the roll-eyes are about.
In most businesses, if you retire old systems/facilities/equipment, you tend to replace them with new to ensure resilience, continuity, capacity, and delivery - you don’t just get rid of the old stuff… |
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At least higher energy and food prices his will make people a bit more careful about their energy and food consumption. . If we don't stop being so consumerist and generating so much waste, then prices will be the very the least of our worries.
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As the article is behind a paywall I can’t see whether it reveals useful metrics like total cubic capacity lost in the sale, or reasons given for the sales such as reservoir no longer in a strategically useful location, life-expired components being prohibitively expensive to replace, etc. |
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As I've previously argued, we should have replaced coal fired capacity with alternatives when they were decommissioned but failing that we need more power generation now. Fracked gas is sold at global prices so that doesn't reduce prices and it still contributes to the climate change crisis. All sources have their disadvantages. Nuclear power is struggling at the moment, (just look at France both in inability to deliver new projects and issues in operating during hot summers), better storage is needed for renewables and we know the story on gas. But doing nothing and waiting for the markets to solve it is not an option. In terms of electricity generation, I think you need to look at sources on a quarterly basis not a daily one to get a more representative figure Ofgen states for Q1 2022: Gas 27.45% Wind and solar 26.49% Nuclear 11.34% Bio 8.46% Net imports 4.94% https://www.ofgem.gov.uk/energy-data...created&page=4 |
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Where would today's missing 22%(compared to Q1 figures) have come from instead? Fracking gas in the UK, would increased supply, thereby reducing market prices. |
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Q1 is in the winter so another quarter would have more solar. You can't look on a daily basis for energy generation. Today's figures don't show that a shift to more renewables, storage and nuclear cannot be done. We need to get on with it for the sake of future generations let alone ourselves. |
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No one can run their devices on electricity promised in the future, you need it now. A shortfall now means something has to give, or it has to be 'imported' from elsewhere. ---------- Post added at 18:06 ---------- Previous post was at 17:58 ---------- Quote:
https://www.lse.ac.uk/granthaminstit...ere-in-the-uk/ Most of the recent esimates are around 4 trillion cubic meters. The UK [domestic] requirement is 70 - 80 billion cubic meters. So it could keep the whole UK supplied for around 40 - 50 years. Another report (further down) calculated that UK production of shale gas could meet between 17 and 22 per cent of UK cumulative consumption between 2020 and 2050 (That I presume includes non domestic use). Again, not really "miniscule". |
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Still wondering where the shortage is, and who is doing without. 9% solar today may look good, but come winter with shorter days and cloudy skies, it's not going to reach 9%. That is another gap to fill. If you don't have gas for electricity. you are could be looking at a 60% shortfall in winter. So what viable alternatives are there for not having gas generated electricity? |
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https://www.express.co.uk/news/uk/16...ht-latest-news You also have the Google cache to peruse: https://webcache.googleusercontent.c...&ct=clnk&gl=uk |
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Averages are great for pretty stats, but in reality, you need to know you can handle maximum demand, not average demand. Quote:
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- It's likely not going to be any cheaper than existing gas - there are significant concerns about the risk of subsidence so unpopular with the public - planning consent is problematical. - it doesn't tick the renewables box I'm aware that Truss now supports it but she can't change the economics. She's added the rider that local people must support it. Which they've not done to date due to subsidence risks. Quote:
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It's not just us householders who are suffering. This caller tells Eddie Mair of a decision to close a UK sea food business losing 900 jobs in the UK and move it to the Netherlands as it cannot operate with 260% energy price rises nor can it pass them on. It's already absorbed a 40% rise and Brexit red tape costs but to survive it must move.
The Netherlands has a 5% energy price cap which the business can absorb. This is another reason why we need action now, not in September. https://twitter.com/g_gosden/status/1559242405219647490 |
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Whatever people say, we are not getting any decisions before that. The options available to the PM are still being drawn up. Liz is not going to be one to splash the cash like Moneytrees Starmer. Any help to individuals and businesses will be properly targeted so that we are not benefiting those that don’t need it. |
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It must be nice with your feet up Old Boy but out there in the real world your delusions won’t pay the bills for individuals and businesses that need support now. |
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The figures may be from last year, but the UK gas prices come out favourably, compared to EU countries. Only 7 countries cheaper.
Link Sweden, Netherlands, and Portugal are all more than twice the UK cost. France is 69% more, Germany 60% more. |
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20 EU countries paying more than the UK. Hardly a sign the UK is being ripped off. |
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The fact that there's large scale taxpayer subsidy universally supports the fact the market has failed. I'm surprised you see that as a "gotcha" moment against others who argue for greater state involvement in markets that are blatantly not competitive. |
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The markets have reacted appropriately by increasing prices to reflect increased demand. How people who can't afford it are helped is a matter for governments. |
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Interesting read from CNN about how we got here, and how that compares to Europe.
https://edition.cnn.com/2022/08/19/e...ner/index.html |
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The problem lies right here. In fact, go and look in the mirror and it’s staring you back in the face. People like you who fell for conservative ideology that the state should have no role and the markets will satisfy our every needs. It was hardly unpredictable that capitalist actors would seek to rinse us for all we’ve got. |
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Placing your country's energy needs in the hands of global energy markets puts you in the hands of geopolitical troubles. It's an approach which has failed the country and the flawed UK energy market needs reforming. |
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The government doesn't seem to want to match the universal help with energy bills and instead make you go to the Doctor to get money off:
https://www.thesun.co.uk/money/19569...-energy-bills/ They've lost the plot entirely. |
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That will never go though
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Its just one of many "ideas" from boffins, not the government. They always come up with some barmy ideas as well as reasonable ones. Typical of the Sun to pick up on it and try and promote is as a serious option. It clearly nuts and no government would seriously propose using such an option. |
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If only the gov made some effort to close the tax gap, the £35 billion could make quite a difference about now.
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Workers might insist on working and sleeping in offices over winter, or being paid a supplement to wfh. |
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https://www.youtube.com/watch?v=_RHzqZx_vPI
We need to re-nationalise energy, Water and the Railway system. Until we do that, we are always going to be subsidising people in foreign companies instead of helping ourselves. |
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Are higher energy really bills the best way to pay for bailing out the energy sector?
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Red herring alert. |
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Why would we exclude worldwide experiences? I don't believe in British exceptionalism any more than you do with your attacks on our workers. |
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With privatisation considered a goal many industries were underfunded in their latter years, plus the previously mentioned decades of innovation between then and now. Alternative successful models can be seen in countries genuinely interested in making a success of them, without being blinded by the blinkers of 4 decades of failed economic policy. |
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Its working great for other countries and they are subsidising it by making profit abroad. When so much profit is being made it could easily be run the same without profit and decrease our costs. |
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On what do you base that, or did you just make it up ? Four decades covers multiple Labour, Conservative and Coalition governments. There were many years of enonomic boom during that time (and some bad years as well). |
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jfman just likes to trash the Tories, while conveniently forgetting all the other bad times with other parties. Perhaps he’d like to tell the SNP to get the overflowing bins sorted in Edinburgh right about now?
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I'm not making a party political point despite what Mick believes, I don't view politics the same way I support a football team. ---------- Post added at 08:28 ---------- Previous post was at 08:25 ---------- Quote:
Done. And it didn't solve the energy crisis. |
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Overflowing bins full of rotting food is a health hazard, not to mention a frigging eye sore. Still a SNP problem, but you can’t bring yourself to trash your pathetic party, can you? :rolleyes: |
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In an independent Scotland with the macroeconomic levers to intervene in the energy market, on inflation, and with borrowing powers I probably wouldn't vote for the SNP. I welcome overflowing bins though. Nothing puts the great in Great Britain more than poor public services, half the country in fuel poverty and shit flowing in the seas. |
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I’m eagerly awaiting the autumn TV schedules. Perhaps now’s the time to bring back It Ain’t Half Hot Mum and Til Death Us Do Part.
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I challenge your views because you only appear to Tory bash, when other parties are just as shit for something. You still need to watch your flippancy btw. :nono: |
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During the boom times we should have been investing and saving but we just spent and spent not always wisely. We raised our lifestyles too far, nothing wrong with a bit of increase with wage rises but we had far too much excess.
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You seem to be under the false impression that investment comes from the private sector rather than recognise the parasitic nature of it. It's the end users - customers - funding the minimalistic investment and high dividends. Hugh linked to a story this morning comparing the dividend payments to investment in to to the water industry. I am hugely entertained by the implication that the energy market is working. Dare I ask, who for? |
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From Santander:
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- The Twilight Zone - Desperate Housewives |
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However, I think the accounts also have a monthly fee. |
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Plus you could just put anything over that in a savings account, the rates on them keep rising atm (not as fast as inflation though). |
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Just a reminder that the next price cap will be announced tomorrow.
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So plenty of time to prepare. 😉 |
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They do have previous for throwing seemingly unlimited amounts of money at people. Personally I am not in favour of anyone getting piles of money to spend on whatever they want. Reducing the price of the cause of the problem is much better. |
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Also worth remembering that October is the month that businesses renegotiate their energy contracts. Cornwall Insight's analysis shows that businesses will have to pay more than four times the price they paid for their electricity in 2020. This is the data behind the claims that certain sectors eg fish and chip shops will be severely impacted.
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I went to see my friend yesterday, prior to last week he had a land lord installed coin electric meter in his flat, now he has one of these https://www.topupmeters.co.uk/ installed by his landlord, will he get the £400 pound discount, there are 7 flats with these meters that are satellites of the main meter for the building.
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Do not give people handouts to pay the power bills. Reduce the bills. |
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