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Energy Bills To Rocket By £172


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HOLA441

http://www.dailyexpress.co.uk/posts/view/235041/Energy-bills-to-rocket-by-172/

ENERGY BILLS TO ROCKET BY £172

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Britain is one of the largest consumers of LNG, with 60 per cent of global supplies coming here

Thursday March 17,2011

By Dana Gloger Consumer Affairs Editor

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ENERGY bills are set to hit record highs following the Japanese nuclear catastrophe.

British households will be hammered by an average rise of £172 – or 15 per cent – in their annual bills for gas and electricity as the crisis in Japan creates a global energy shortage.

The UK will be the country worst affected by the problems following last week’s earthquake. The damage to Japan’s nuclear reactors has forced it to increase the amount of liquefied ­natural gas it imports, diverting supplies away from the UK.

Britain is one of the largest consumers of LNG, with 60 per cent of global supplies coming here. One third of our power stations are also run on gas. As demand increases, supply has not risen and wholesale prices have been sky-rocketing. Energy experts have warned that these increased costs will be passed to the consumer.

The news comes after all of the big six suppliers recently brought in price rises of 5.9 per cent on average. This has already added £62 to household bills.

Read more: http://www.express.co.uk/posts/view/235041/Energy-bills-to-rocket-by-172/Energy-bills-to-rocket-by-172#ixzz1GoMpmILk

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Did not take long for the opportunists to pick up on this one... Had a young lad calling at my home today, trying to urge me to switch to Scottish Power, as they will apparently not increase their rates. He did cite the Japan catastropheas reason why everyone else will have to increase their bills.

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Did not take long for the opportunists to pick up on this one... Had a young lad calling at my home today, trying to urge me to switch to Scottish Power, as they will apparently not increase their rates. He did cite the Japan catastropheas reason why everyone else will have to increase their bills.

Oh dear. Did he tell you anything you could nail as an outright lie? Scottish power did that when they tried the hard sell on me.

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Ho hum...

Analysis: Global gas glut to stay even with more Japan demand

(Reuters) - The world's biggest gas exporters will benefit from Japan's increased need for liquefied natural gas (LNG), but the global gas glut that has weighed them down over recent years is unlikely to shrink significantly.

...

French bank Societe Generale estimates extra Japanese demand at 5 billion cubic meters (bcm) this year and remaining at 2 bcm above pre-quake levels of around 88 bcm for years to come.

But that increase will make little difference to a global gas market that the International Energy Agency has said could be oversupplied by 200 bcm.

If SocGen's prediction that about half of Japan's loss in nuclear capacity from Friday's quake will be replaced by gas is correct, it would need delivery of about one extra tanker carrying 145,000 cubic meters of LNG a week to meet it.

"These are very small volumes compared to the supply that is available at the moment. So it will have a slight impact, but it will not put pressure on the market," said Carlos Torres, a senior gas analyst at Point Carbon, a Thomson Reuters company.

...

Phew, just as well we have a state and state regulators to protect us from naked thievery

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HOLA447

Total rubbish , the uk does not use 60% of global LNG , it is a tiny player , the LNG is all used by places like Japan and Korea who use massive amounts compared to the uk as they have no pipeline gas imports, The uk was self sufficient in gas until a few years ago now imports the bulk of its needs from Norway and NL via pipeline, there are 3 LNG regassification plants to handle LNG imports, a tiny volume compared to Korea or Japan .

The uk used all its cheap gas, this LNG which we are looking to replace some of the lost North sea gas is very expensive, more expensive than pipeline gas from norway or gazprom and about 3 times the price of gas available in the US where they now have a glut of due to shale production.

Europe is soon to begin shale production, they are at an advanced stage in Poland and I have friends who are drilling there at the moment, there is also potential for smaller amounts in the UK in places like Blackpool but its a long way off.

The UK has been incredibly dumb in its planning for gas use, the regulator is in the pockets of the industry it is supposed to oversee and so all the decisions that have been made are to some degree corrupted and the UK will pay heavily for this.

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Total rubbish , the uk does not use 60% of global LNG , it is a tiny player , the LNG is all used by places like Japan and Korea who use massive amounts compared to the uk as they have no pipeline gas imports, The uk was self sufficient in gas until a few years ago now imports the bulk of its needs from Norway and NL via pipeline, there are 3 LNG regassification plants to handle LNG imports, a tiny volume compared to Korea or Japan .

The uk used all its cheap gas, this LNG which we are looking to replace some of the lost North sea gas is very expensive, more expensive than pipeline gas from norway or gazprom and about 3 times the price of gas available in the US where they now have a glut of due to shale production.

Europe is soon to begin shale production, they are at an advanced stage in Poland and I have friends who are drilling there at the moment, there is also potential for smaller amounts in the UK in places like Blackpool but its a long way off.

The UK has been incredibly dumb in its planning for gas use, the regulator is in the pockets of the industry it is supposed to oversee and so all the decisions that have been made are to some degree corrupted and the UK will pay heavily for this.

Is there no limit to the combined knowledge of HPC?

I've been learning about the nuclear industry all week and now understand the British LNG industry.

It's like the Open University. Just taught by dudes with names like "catsick"!

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the regulator is in the pockets of the industry it is supposed to oversee and so all the decisions that have been made are to some degree corrupted and the UK will pay heavily for this.

Never! I can't believe that would happen in this country, you'd never get the FSA behaving like that...

Thanks for the info, I also never cease to be impressed by who knows what around here!

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HOLA4410

Never! I can't believe that would happen in this country, you'd never get the FSA behaving like that...

Thanks for the info, I also never cease to be impressed by who knows what around here!

+1

Agreed, HPC is a definite place to gain more knowledge, including finance, politics, sarcasm, lies, etc. :D

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HOLA4411

Given that there is a global glut in gas supplies and that the UK is a small player in the LNG market you might be inclined to ask yourself how and why the Express is peddling demonstrably inaccurate nonsense like this

On the other hand, it's more than likely that gas prices will be hiked by 10-15% this year. So, maybe we should be thankful to the Express for offering us a fairy tale to believe in, rather than the truth about what we are and what can be done to us

Edited by Charlton Peston
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+1

Agreed, HPC is a definite place to gain more knowledge, including finance, politics, sarcasm, lies, etc. :D

Indeed, this time last year, before I found this site I thought current HPs were all down to supply and demand. I have come a loooooong way since then...

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Given that there is a global glut in gas supplies and that the UK is a small player in the LNG market you might be inclined to ask yourself how and why the Express is peddling demonstrably inaccurate nonsense like this

It could be that investors in the Express also own a large number of Centrica shares and are attempting to use it to butter up the public (in the Last Tango in Paris sense) for being shafted later in the year when the energy companies put the gas price up, blaming rising wholesale prices. Miraculously, despite the high wholesale price of gas, the company will continue to make billions in profits and continue to pay its executives their well deserved millions in salaries.

Or something along those lines, anyway.

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......

Europe is soon to begin shale production, they are at an advanced stage in Poland and I have friends who are drilling there at the moment, there is also potential for smaller amounts in the UK in places like Blackpool but its a long way off.

......

Don't forget natural gas (mostly methane) from coal seams (CBM or coal bed methane) - I bought some shares in a company called igas energy (just to declare my interest ;)) on the basis of its potential to supply up to around 7% of the UK gas consumption from these onshore domestic sources. Think of coal seams as very gassy supershale.

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