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Uk Electricity Prices Almost Twice As Expensive As Germany Within Three Years

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http://www.telegraph.co.uk/finance/newsbysector/energy/10130970/UK-electricity-prices-almost-twice-as-expensive-as-Germany-within-three-years.html

Electricity prices in Britain may be almost double those in Germany within three years due largely to the impact of a new tax aimed at supporting renewable power generation, a report by bank Credit Suisse has claimed.

The bank's analysis showed wholesale prices, which form the backbone of energy bills, would top those in Germany by 85pc in 2016-17 and would be higher in general for the next seven to 10 years.

The bank blamed the roughly fivefold rise in the government's new tax on carbon-dioxide emitting power generation over the next seven years, while also pointing to Britain's lack of infrastructure to import power from the European mainland.

Prices in the two countries had tracked one another for years, but they diverged last year as Germany spurred a boom in renewable energy generation by pouring billions into subsidising the green sector.

The Credit-Suisse figures show that in the winter of 2016/17 UK power prices will trade at an 85pc premium to German equivalents, compared with a 25pc divergence currently.

"Our analysis suggests these differentials will continue for the next seven to 10 years," analysts at the Swiss bank said in a report to clients.

..

Higher wholesale power prices in the UK have led to much better stock market performance by UK utilities compared with those in mainland Europe over the past 18 months.

Share prices in UK power utilities have increased around 28pc over the period, while European stocks are down 8pc.

So buy UK stocks then.... Not sure what is going to happen to the UK's manufacturing base if costs keep going up our competitive edge will be eroded. Although this report could also be a bit of ramping for UK energy stocks....

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http://www.telegraph.co.uk/finance/newsbysector/energy/10130970/UK-electricity-prices-almost-twice-as-expensive-as-Germany-within-three-years.html

So buy UK stocks then.... Not sure what is going to happen to the UK's manufacturing base if costs keep going up our competitive edge will be eroded. Although this report could also be a bit of ramping for UK energy stocks....

This does not make sense.

Germans subsidize renewables = lower energy prices.

But if we subsidize renewables = higher energy prices.

At least that's the argument they are putting forward.

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This does not make sense.

Germans subsidize renewables = lower energy prices.

But if we subsidize renewables = higher energy prices.

At least that's the argument they are putting forward.

I suspect it is more down to the fact that here the government is taxing carbon from the older power stations far more than the Germans are subsidising their renewable energy.

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It's far from clear, but I think this is about George Osbourne's "carbon escalator" tax.

If carbon "market" prices rise, energy gets more expensive.

If carbon "market" prices fall, carbon tax goes up to "top-up" the carbon price to its historic peak, so that energy gets even more expensive.

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It's far from clear, but I think this is about George Osbourne's "carbon escalator" tax.

If carbon "market" prices rise, energy gets more expensive.

If carbon "market" prices fall, carbon tax goes up to "top-up" the carbon price to its historic peak, so that energy gets even more expensive.

Sounds about right, the same wheeze was planned with the "fuel duty stabiliser" which Osborne has not dared try (yet?).

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The excuse:

new tax aimed at supporting renewable power generation

The real reason for the price rises:

much better stock market performance by UK utilities compared with those in mainland Europe over the past 18 months.

Share prices in UK power utilities have increased around 28pc over the period, while European stocks are down 8pc.

Don't be fooled, it's all about maximising profits for the corporate gangsters.

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It's far from clear, but I think this is about George Osbourne's "carbon escalator" tax.

If carbon "market" prices rise, energy gets more expensive.

If carbon "market" prices fall, carbon tax goes up to "top-up" the carbon price to its historic peak, so that energy gets even more expensive.

Un-******ing-believable!

The lunatics are running the asylum. Every basic need we have being interfered with for spurious reasons, the result being it costs far more than it need to and should do.

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Some decades ago there used to be some point in comparing the UK with Germany but the UK's been left so far behind it seems a bit pointless now except perhaps to show what can happen if running a nation's economic policy in a crazy way.

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This does not make sense.

Germans subsidize renewables = lower energy prices.

But if we subsidize renewables = higher energy prices.

At least that's the argument they are putting forward.

German electricity is already one of the most expensive in EU - because of the renewables:

http://www.telegraph...ream-costs.html

"The fact that German electricity prices are among the highest in Europe, must serve as a warning signal," said the IEA. "The transition to low-carbon energy requires public acceptance, and therefore retail electricity prices to remain at an affordable level."

Edited by Damik

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German electricity is already one of the most expensive in EU - because of the renewables:

http://www.telegraph...ream-costs.html

"The fact that German electricity prices are among the highest in Europe, must serve as a warning signal," said the IEA. "The transition to low-carbon energy requires public acceptance, and therefore retail electricity prices to remain at an affordable level."

So that means the UK energy prices will be double high German energy prices then?

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Germany has invested a lot more than us in renewables. So while we pay to catch up from an era of underinvestment, they reap some benefits.

There's a parallel with housing there. After 1945, Germany built high quality while UK built low cost. The legacy of that is a much better housing stock in Germany, without the pressure and high prices on anything half-decent.

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This does not make sense.

Germans subsidize renewables = lower energy prices.

But if we subsidize renewables = higher energy prices.

At least that's the argument they are putting forward.

Tax people and spend the money on buying up the slack supply, creating a shortage, so that everyone gets to pay more. That's how housing subsidies are used.

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Germany's renewables have been creating problems in relation to energy dumping.

There is going to be a monumental confrontation coming up that one way or another will lead to a rise in prices and rolling blackouts.

We are losing capacity fasert that we can replace it and at the same time forcing the non-renewable generators into bankruptcy by taking away a significant portion of their sales. Put simply, if you switched to using renewables for 50% of your energy, the cost of running the non-renewable stations to provide the rest wouldn't drop by 50%, probably by about 10%. What we are already seeing is gas/coal power plants being closed because they are no longer profitable, despite as facing a massive shortage.

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  • 239 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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