Saturday, May 12, 2012

Oh joy...

Seems like the energy supply countries are about to take us for mugs again with a major price rise in the region of 15% Some of it is wholesale costs, mostly though it's the cost of government interference in the way they have to do business, by interference read "green energy" along with the climate tariff. This along with a reluctance to opt for the abundant and relatively cheaper fracking method of gas production leaves us to face the inevitable rise in bills, notwithstanding the £9 million pay rise given to British gas executives of course...
ENERGY bills are set to rise by up to 20 per cent this winter, experts warned last night.
That would mean already hard-pressed households having to fork out an extra £240 a year.
Centrica, owners of British Gas, warned wholesale costs were up 15 per cent on last year. The UK’s biggest supplier, which has nearly 16 million customers, said other costs such as transport would add a further £50 per household to the cost of supplying gas and electricity.
Industry analysts said they expected the company to put up bills by 19 per cent. The other major suppliers that make up the Big Six – EDF Energy, EON, nPower, Scottish and Southern Electric and Scottish Power – are expected to follow suit.
British Gas put up its gas charges by 18 per cent and electricity by 16 per cent in August last year. It then dropped its electricity tariff by five per cent in January.
All the Big Six raised bills last year, by an average of 21 per cent, adding roughly £224 to the yearly bill. When wholesale costs fell, they cut charges by just 3.2 per cent on average.
The easiest way to reduce prices is as I've said to remove the various bits and bobs of green legislation attached to the energy companies in the way of generation subsidies and the green tariff itself. The next step would be to remove foreign control from the UK's power generation industry. If the the UK power industry were controlled and run by companies based in the UK then at least the suspicion that we're subsidising foreign fuel bills will be put to rest.
At the moment though, what we have appears to be a cartel, actively supported and encouraged by the government of both the UK and EU to fleece the long suffering people of the UK.

0 annotations: