Energy affordability crisis

[Itchysphincter]

Yeah simples init. What’s the point in having a price cap at all if they can just put it up all the time. They don’t even have to charge at the cap price, they choose to. The energy companies are doing okay out of it but the wholesalers like Shell etc, are seeing massive reruns.

Typical Tory response from Truss though - cut taxes. A few will love that, and they’ll be the ones who are paying more tax because they’re earning more and they’re more comfortably off so a nice little rebate for them. What about those who are earning f*ck all and pay little tax? No help, that’s what.

What a broken country we live in.

 

[Itchysphincter]

I read an interesting theory a few months ago after the government had finally implemented Labour's suggested windfall tax.

The government takes a windfall tax on the excessive profits from the energy companies and gets credit for doing so
The government gives this to the population to help with their energy bills and gets credit for doing so
The population pay the money from the government to the energy companies
The energy companies pay the money to their shareholders as dividends.

So, the people unwittingly become a conduit for moving large amounts of public money (raised via a windfall tax) into private hands. The perfect Tory plan.

That’s not a theory, that’s how it works.

Anyone thinking of voting Sunak or Tory in general, has sh^t in their eyes and ears.

 

[waynekerr55]

I read an interesting theory a few months ago after the government had finally implemented Labour's suggested windfall tax.

The government takes a windfall tax on the excessive profits from the energy companies and gets credit for doing so
The government gives this to the population to help with their energy bills and gets credit for doing so
The population pay the money from the government to the energy companies
The energy companies pay the money to their shareholders as dividends.

So, the people unwittingly become a conduit for moving large amounts of public money (raised via a windfall tax) into private hands. The perfect Tory plan.

That’s not a theory, that’s how it works.

Anyone thinking of voting Sunak or Tory in general, has sh^t in their eyes and ears.

"BuT cOrRbIn/bLaRe"

 

[Pegojack]

That’s not a theory, that’s how it works.

Anyone thinking of voting Sunak or Tory in general, has sh^t in their eyes and ears.

"BuT cOrRbIn/bLaRe"

Yes, that's another thing that needs to be dealt with, the power of the rabid right wing press, as Monny mentioned earlier.
Personally, I'd just put a £2 tax on every copy sold, or every internet hit, of the Fail, the Express, the Sun and the Telegraph, and redistribute the money in increased welfare benefits, but some might think that undemocratic ...

 

[Neath_Jack]

Another thing, what is actually driving the prices up? Don't just reply Brexit, or Ukraine, explain to me how and why if you can.

 

[Niigata Jack]

Another thing, what is actually driving the prices up? Don't just reply Brexit, or Ukraine, explain to me how and why if you can.

The materials they use to make the energy and the process involved in delivering that energy, I guess,

 

[Neath_Jack]

Another thing, what is actually driving the prices up? Don't just reply Brexit, or Ukraine, explain to me how and why if you can.

The materials they use to make the energy and the process involved in delivering that energy, I guess,

What materials do they use that have increased by this percentage? Genuine question.

 

[exiledclaseboy]

I still don’t understand why not reverse the last price cap rise and scrap the next one.

 

[Niigata Jack]

The materials they use to make the energy and the process involved in delivering that energy, I guess,

What materials do they use that have increased by this percentage? Genuine question.

I've no idea, except that they maybe are buying what ever materials they are using in from abroad, coal fired turbines etc, that produces the electric, I've no idea on gas, storing and delivering it perhaps, just guessing here mind. :shock:

 

[Neath_Jack]

What materials do they use that have increased by this percentage? Genuine question.

I've no idea, except that they maybe are buying what ever materials they are using in from abroad, coal fired turbines etc, that produces the electric, I've no idea on gas, storing and delivering it perhaps, just guessing here mind. :shock:

Well according to my tariff, I've got 100% renewable energy. So unless they're transporting it from a windfarm in Kyiv, I be fucked if i know what's happening.

 

[exiledclaseboy]

I've no idea, except that they maybe are buying what ever materials they are using in from abroad, coal fired turbines etc, that produces the electric, I've no idea on gas, storing and delivering it perhaps, just guessing here mind. :shock:

Well according to my tariff, I've got 100% renewable energy. So unless they're transporting it from a windfarm in Kyiv, I be fucked if i know what's happening.

Market forces mainly. They charge because they can and we have to pay it because we have no choice. It’s essentially legalised theft from what I can tell.

 

[Niigata Jack]

Well according to my tariff, I've got 100% renewable energy. So unless they're transporting it from a windfarm in Kyiv, I be fucked if i know what's happening.

Market forces mainly. They charge because they can and we have to pay it because we have no choice. It’s essentially legalised theft from what I can tell.

As soon as these little companies started to collapse due to to the cost of buying the energy the writing was on the wall, like I said earlier in the thread Ofgem are supposed to exist to protect the consumer and to make sure there's fair play across the board, but what the can't do is govern the cost of the energy, I believe that they could and should be doing a hell of a lot more, otherwise what's the point of them.

 

[Londonlisa2001]

Another thing, what is actually driving the prices up? Don't just reply Brexit, or Ukraine, explain to me how and why if you can.

There are two things that can push prices up for something - an increase in demand, or a decrease in supply.

In this case, the throttling of gas supplies by Russia in response to sanctions imposed by the West has greatly reduced the supply of gas to the EU. As a result, they need to fill up their requirements from elsewhere and the price of gas goes up for all of us as a result.

In some scenarios when market forces mean that there is a severe shortage of something, everyone (the consumer that is, both personal and business) just stops buying it or buys an alternative. In this situation we can’t as we are so reliant on gas for electricity generation. As the weather gets colder throughout Europe, the need for domestic gas for heating etc will also greatly increase. Hence price rises.

We have a perfect storm though on oil as well. As, again, war in Ukraine, together with sanctions on Iran, the increase in production again in China post pandemic etc etc etc means the crude prices increased (as other suppliers refused to increase their supplies to compensate so they can maximise profits). We also are stuffed as oil and other commodities are traded in dollars and sterling has collapsed due to brexit and also the amount of quantitate easing we had to pay for furlough. It goes without saying that fuel costs increase the price of everything, particularly food and other consumables.

 

[Neath_Jack]

Another thing, what is actually driving the prices up? Don't just reply Brexit, or Ukraine, explain to me how and why if you can.

There are two things that can push prices up for something - an increase in demand, or a decrease in supply.

In this case, the throttling of gas supplies by Russia in response to sanctions imposed by the West has greatly reduced the supply of gas to the EU. As a result, they need to fill up their requirements from elsewhere and the price of gas goes up for all of us as a result.

In some scenarios when market forces mean that there is a severe shortage of something, everyone (the consumer that is, both personal and business) just stops buying it or buys an alternative. In this situation we can’t as we are so reliant on gas for electricity generation. As the weather gets colder throughout Europe, the need for domestic gas for heating etc will also greatly increase. Hence price rises.

We have a perfect storm though on oil as well. As, again, war in Ukraine, together with sanctions on Iran, the increase in production again in China post pandemic etc etc etc means the crude prices increased (as other suppliers refused to increase their supplies to compensate so they can maximise profits). We also are stuffed as oil and other commodities are traded in dollars and sterling has collapsed due to brexit and also the amount of quantitate easing we had to pay for furlough. It goes without saying that fuel costs increase the price of everything, particularly food and other consumables.

I'm not buying that, they are 100% taking the piss Lisa. Okay things go up depending on demand, but not this much. Same as fuel prices, they are buying it cheaper now than months ago, but the price at the pump is still sky high.

Okay, so what explanation for my eclectic bill tracking the price of my gas bill, when it is meant to be 100% renewable? Surely importing gas / oil from wherever, won't affect this price?

I'm not being awkward, I'm genuinely tamping and concerned for family members, when all i can see is greedy corporations making billions upon billions.

 

[exiledclaseboy]

Oh for someone sensible and decent in charge now.

https://www.theguardian.com/politics/2022/aug/10/gordon-brown-says-energy-firms-unable-to-offer-lower-bills-should-be-temporarily-re-nationalised