Gaz and Leccy - Important info!

Discussion in 'Off-Topic Discussion' started by Fat Controller, Jul 9, 2022.

  1. Fat Controller

    Fat Controller 'Cuddly' Scottish Admin! Staff Member

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    I thought it prudent to bring this to everyone's attention. Ofgem have set the energy price cap from October, and it is not a pretty picture.... to be honest, I have no idea what we are all going to do as this is simply unsustainable.

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    • Jiffy

      Jiffy The Match is on Fire

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      Well some one has to pay for all the charging points for the elecy cars/bikes etc
       
    • Fat Controller

      Fat Controller 'Cuddly' Scottish Admin! Staff Member

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      Sadly though, it appears that this is not paying for that, there is a hell of a lot of profit involved though.

      They have set things up very cleverly though - the company that supplies your energy often doesn't make a huge profit. The company they are buying it from though, does - and the company that they are buying it from may be another company from the same parent company.

      Energy supplier (the one who bills you) - modest profit margin
      Generating supplier - huge profit margin
      Transit supplier (eg, UKPN) - big profit margin

      and if you use the likes of USwitch or Money Supermarket to change suppliers.. they make a chunky profit too.
       
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      • pete

        pete Growing a bit of this and a bit of that....

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        I heard about the price hike last night.
        Just wondering if the fixed deal I was offered is still available, probably not as the hike is high than predicted a couple of months ago.

        Where does all that cheap wind generated electricity go. :roflol:
         
      • Michael Hewett

        Michael Hewett Total Gardener

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        It would be better if they used the millions they're wasting on the Ukrain/Russia war (which is going to go on for years and which Russia will win in the end) ... on helping the British people.
        With all due respect to the Ukrainians, but charity begins at home.
         
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        • pete

          pete Growing a bit of this and a bit of that....

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          We just lurch from one crisis to another these days.
          Politically and otherwise, once we all get used to paying these prices I doubt they will come down much if any in the future.
          Then some other crisis will come along and this lot will be history.
          I can't see any end to it all but a few stable years would be good.
           
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          • Clueless 1 v2

            Clueless 1 v2 Total Gardener

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            Small investment now compared to the economic costs of not helping. The alternative. Russia quickly defeats Ukraine. The Ukrainians, feeling completely let down by the west, capitulate to Russia. Putin is encouraged by his success, and Russia along with Belarus feel much more confident about trying to seize other former Soviet states. Meanwhile in China, the observation is that nobody comes to help, Taiwan is invaded and quickly captured.

            Most of the stuff we buy either comes direct from the east, or uses components or raw materials from there.

            Us ordinary Brits would certainly not find ourselves better off in the mid to long term if we left them to it.
             
          • pete

            pete Growing a bit of this and a bit of that....

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            Going off track slightly, but seeing as Ukraine has been mentioned.
            Putin may have an argument bearing in mind the lengths NATO are going to help a non NATO country and one that was once considered part of the USSR.
            He sees Ukraine as very closely associated to Russia historically and the west as trying to take over the place.
            Russians get a very skewed view as to what is going on, but I do wonder how even handed our news is.
            We hear very little of the Russian speaking people and their views on the subject.
            Sure Putin is using a sledgehammer approach but some one is going to have to sit down and talk about this at some stage.
            I can't see Russia giving in and moving back now, so let's talk before he flattens the whole country.
             
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            • Fat Controller

              Fat Controller 'Cuddly' Scottish Admin! Staff Member

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              Whilst there is a link, in more ways than one, with the war in Ukraine that is being used as a cover for a lot of the pain we are seeing now. Ultimately, we are paying for the failures of prior governments - failing to replace generation capacity, actively reducing fuel storage and making us dependent on other nations and tying us into green deals that we simply cannot afford.

              Russia and Ukraine are but a side-show really, although I do wonder if it would have been better to simply remove Putin somewhat rapidly and have done with it - appreciate that there was a desire to avoid WW3, but we haven't avoided it...
               
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              • pete

                pete Growing a bit of this and a bit of that....

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                Sorry. but I dont agree FC, We are paying world prices for energy and will continue to do regardless of what we do internally.
                The cheap energy that is promised from home generation is just that, a promise, it wont happen and never will, if we are being led up the garden path that is it.
                Green deals are something else but our 0.9% of the worlds CO2 appears to be critical.:biggrin:

                Simply remove Putin rapidly?
                How many people are you prepared to kill in order to do that?:roflol:
                 
              • Fat Controller

                Fat Controller 'Cuddly' Scottish Admin! Staff Member

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                @pete - we used to have significantly more storage capacity than we do now, particularly for LNG/LPG; that allowed us to hedge our supplies to some degree by purchasing at cheaper times (such as now) and storing it for later. The muppets that are our government got rid of that storage. Furthermore, if we had invested properly in nuclear tech 20 years ago instead of banking solely on wind and solar, then we would be able to supply much more of our own energy and potentially trade energy outwards instead of being a net consumer.. however, there is too much profit to be made so as you rightly say that stuff will only ever be a promise.

                As for how many people killed - how many have been killed so far?
                 
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                • pete

                  pete Growing a bit of this and a bit of that....

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                  Missing my point FC, we pay world prices whether we produce it ourselves or buy it in from abroad, storage possibly would help short term but the companies storing it would be the ones making the profit, they wouldn't let it go below market price.

                  Nuclear power, I would agree would make us more likely to be self sufficient, but I understand the market price of electricity is liked to the price of gas on the world market.

                  The days of isolation are over, we are never going to get away from world prices on this kind of thing. the companies involves are multinational and sell at the going rate, if not, they will sell elsewhere.
                   
                • Fat Controller

                  Fat Controller 'Cuddly' Scottish Admin! Staff Member

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                  The price of electricity is indeed linked to that of gas, simply because gas is the most expensive form of generation. My supplier (sHELL) states that they supply 100% renewable electricity, yet I am forced to pay the highest price as the price of gas goes up - now, I am no rocket scientist, but I am fairly sure the price of fresh air hasn't gone up! Allegedly, this structure is being looked at with the price link to be broken and that to me can only be right. The current method is the equivalent of booking a seat on a train, being forced to stand all the way and yet also being forced to pay for a first class ticket...
                   
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                  • pete

                    pete Growing a bit of this and a bit of that....

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                    I agree but that is how it appears to work.
                    Well nothing new there, I've heard that happens often.:biggrin:
                     
                  • Clueless 1 v2

                    Clueless 1 v2 Total Gardener

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                    We have to pay such high prices simply because energy generation has been fully outsourced to prove, mostly international companies. If EDF generate cheap electricity in the UK, that's great for them. Their contracts are based on the going rates globally.

                    I'm going to say something next that many will disagree with. As individuals we can all influence energy prices, but only if enough of us do it. Too many people want to keep consuming as they've always done. When I was a kid, if it was cold, we put on a jumper. If it was really cold, we might heat the room we spend most time in. Nowadays and for a long time, folks want to heat their entire house. If there was a draught, you fix the draught. Now people turn the heating up. Not many people look at how much energy they use when cooking, and if there are ways to cook more efficiently. People want to drive everywhere. There's some statistic kicking about that the majority of car journeys are less than 5 miles.

                    There's lots of things people can do to drive down their energy consumption, and if the majority did it, then demand overall would fall sharply enough to drive prices down, but it takes a concerted effort from the majority, and I don't think there's much chance of that happening.
                     
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