Could anyone explain the graph showing the relationship between consumer and wholesale energy costs on this page:
Oddly, the article misses this point entirely, and doesn't refer to the graph.
Doesn't it show that the sole reason for increased fuel costs is the practice of the domestic supplier? In fact, if the costs are unadjusted, energy cost has actually gone down. I must be missing something!
Thanks, Rob
The energy suppliers have had their arms twisted so they have to take part in various energy saving programmes, e.g. subsidised loft/wall insulation, handing out CFLs, levies to fund renewables, etc.
I'm sure we don't need to trot out the arguments about which of these are good/bad, but it means the price to the customer is not directly related to the cost of the raw energy plus the supplier's own overheads.
Left to their own devices and with inadequate supervision the energy companies will quietly increase the price ahead of the wholesale price. It tracked wholesale prices reasonably well (though higher) until 2009. No surprises that the present government allows them to price gouge whilst professing to make them put people on the "best" tariff.
As for the ministers claim that green energy will be cheaper you have to wonder what planet he is living on. We need a shot across the bows from gas supply going offline now to wake the stupid bastard up!
Wholesale cost to supply has been flat at ~£600 for a couple of years. But there is still money to be made from manipulating the spot markets. Look at last weeks +50% gas price spike for an example.
I did think it odd that the article seems to imply that the VAT rate on heating fuels is not within the remit of government policy.
snip
Well yes, that's a spike and they happen - the graph presumably smooths out such things.
Quite. But that's 5%. The differential has leaped from a c.25% return to a 100% return. Even taking Andy's good points into account something appears to be up.
Rob
Yes. Profits.
Yes, Whole sale prices have been fairly stable at around £600 over the period. Retail price has gone up by about £600 for the same period, al so note that is dual fuel. Single fuel bills are generally higher but I don't know if that is just an offset or if the rises have also been higher.
Taking a look at the infographic (if you can read it) is far more revealing on how they make this "saving".
Ah a bigger one and the full story:
Several things appear on both sides, like the "Warm Home Discount" and "Smart Meters and Better Billing". TBH I doubt I and many others, will benefit any like the figures in green but will still have to pay all the figures in red.
For a start the Warm Home Discount is not available to all.
£158 annually from "Products Policy"? ie more efficient appliances and lighting. We already have A rated stuff and use CFLs... £158/year at 10p/unit is over 4 units a day saving, really?It's spin, pure and simple but spinning so fast I can't be arsed to try
and unspin it any further.
Yes. The graph clearly shows the increased profit margins for the energy companies. The problem is that there is no effective competition in the market despite there being no monopoly. One can only guess why.
That's the trouble. It will take a major disaster to force a change of policy by which time it will be too late to avoid power cuts and shortages being commonplace for a long time.
Is why subsidies are a bad idea.
We've just had an EPC done on my Mother-in-law's house as part of selling it. One of the "recommendations" is the installation of a solar electric scheme which on their best figures will take 135 years to repay its costs. My M-I-L is 95.
Huge wrote: [snip]
Excuse me while I laugh until I am hoarse.
I noticed a lot of solar panel installation recently while out on a long drive. In some places fields are covered with the things. Oddly no one seems to think of roofing barns with them yet they seem ideal candidates for solar.
Lots of windmills too, some of them actually working. My wife reckons it's just to power the flashing light on top.
A little unkind. Wind managed ~5GW towards the end of last week, although it's back down to ~2GW now.
Careful, Steve, they'll make you into school meal burgers.
But they have thought of covering motorway noise barriers with them - planned for M40 north of High Wycombe. Supposedly the first in at least England...
Nay!
Hmmm the M27 was lined with them a few years ago. Not anymore, so the experiment clearly failed.
Have you bothered to work out how many % profit they make on their investment?
You wouldn't be happy if you got the same rate on your savings.
You're selling it so the repayment period is irrelevant, its what it does to the sale price that matters to you.
I think my long term depsoits are currently attracting less than 1% return dennis, so Id be poverjoyed.
That is why money is piling into sticks that are reasonably protected against capital losses and are paying 3-5% dividends.
Your money is better in centrica than in a bank. Especially if the EU decides to steal 10% of it to prop itself up.
I'd be very careful, just one slight spelling mistake or typo and you'll end up in lasagne .
Oh, indeed. But it's rather more than is required to flash the lights.
We should be running up nuclear fission sites as fast as is safe and pouring huge sums into fusion research. We could start with all the subsidy to the bloody windmills.
You mean shareholder capital? Could you share the answer?
Target date for first of next generation of nukes has just been quietly slipped back another 5 years to 2030
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