Crude oil, gas and electricity

[Taf]

A quote from Which magazine:

Based on wholesale prices in late January, it said the cuts of up to 5.1%, should actually have been up to 10.3%.

And it found that standard variable electricity tariffs, which have not been cut, should be reduced by 15%.

Brent Crude Oil Price:



http://www.bbc.co.uk/news/business-31102496

When the price of crude rises, they say that gas and electricity as tied to the price.

When the price drops, such a tie is denied to exist.

[Gary L]

Oh well. we're British.
by all means have a good old British moan. but at the end of the day. we're British.

Traditional British quaint. "it's disgusting"

[denphone]

What else can you expect with a good old cartel.

[heero_yuy]

And of course Milibrain's price freeze promise that sent a corporate shiver through the energy industry. Who's going to cut prices when you could be locked into them by law when crude prices rise again?

Thanks Ed, moron.

[richard s]

Laws can be changed/amended! Unlike the Tory boys who have done 0.

[TheDaddy]

Originally Posted by heero_yuy

And of course Milibrain's price freeze promise that sent a corporate shiver through the energy industry. Who's going to cut prices when you could be locked into them by law when crude prices rise again?

Thanks Ed, moron.

How convenient for them that it's not actually the energy companies fault

[Mick Fisher]

Originally Posted by denphone

What else can you expect with a good old cartel.

Spot on Den.

[jtwn]

If the government actually cared, it could set up its own operation that sells energy at a price where it only makes a marginal profit on the market price it buys at.

But it wouldn't do it because that falls under the guise of being 'uncompetitive' and public industries are 'inefficient'. Obviously it is a bit too 'red' as well and we could never go against the wheel that thatcher started turning.

[rhyds]

Originally Posted by jtwn

If the government actually cared, it could set up its own operation that sells energy at a price where it only makes a marginal profit on the market price it buys at.

The problem there being that the "company" would basically be run by political expediency rather than market needs. For example, say the government decide to be "green" and stop the New Electricity Board from buying supplies from coal and nuclear power stations. Prices would go through the roof, and if you disagreed with that what options do you have? None, aside from buying your own generator.

Also, that "marginal profit" wouldn't pay for network upgrades and the like, and if it were in any way substantial the government would simply "divert" it to more "worthy" causes (insert your own pet peeve here). It boils down to this, do you think that politicians can be trusted to keep the lights on?

That's not to say not-for-profit utilities can't work, Welsh Water is run on a not-for-profit basis, but is not government controlled. Of course it does have the benefit of being in an industry where competition is non-existent, so they can't really fail to make things work.

[richard s]

Then we have FRACKING to contend with.

[jtwn]

Originally Posted by rhyds

The problem there being that the "company" would basically be run by political expediency rather than market needs. For example, say the government decide to be "green" and stop the New Electricity Board from buying supplies from coal and nuclear power stations. Prices would go through the roof, and if you disagreed with that what options do you have? None, aside from buying your own generator.

Also, that "marginal profit" wouldn't pay for network upgrades and the like, and if it were in any way substantial the government would simply "divert" it to more "worthy" causes (insert your own pet peeve here). It boils down to this, do you think that politicians can be trusted to keep the lights on?

That's not to say not-for-profit utilities can't work, Welsh Water is run on a not-for-profit basis, but is not government controlled. Of course it does have the benefit of being in an industry where competition is non-existent, so they can't really fail to make things work.

You operate the company with a charter that clearly defines what it is to do and how it is to be achieved. Enshrine it in law if needs be.

And the marginal profit would be whatever you set it to so it could of course pay for network upgrades should you set it to this amount. The big energy firms currently constrain investment into the network so an arrangement such as this would be infinitely more beneficial than the current set-up.

[Pierre]

Originally Posted by richard s

Then we have FRACKING to contend with.

We should be fracking all over.

I don't see what the issue is.