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Britain To Pay More For Power Than Germany For A Decade

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British electricity prices 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. Rises in retail prices have become a popular bugbear in Britain at a time when wages are falling in real terms. The bank's analysis showed wholesale prices, which form the backbone of energy bills, would top those in Germany by 85 percent in 2016-17 and would be higher in general for the next 7-10 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 British government introduced the mandatory tax on carbon emissions at 4.94 pounds per tonne of CO2 earlier this year, adding to the carbon charges already in place under the European Union's Emissions Trading System (EU ETS). The two costs calculated together will rise to 30 pounds per tonne in 2020, an expense which will significantly increase British power prices.

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 28 percent over the period, while European stocks are down 8 percent. Link

Inflation up and stock market doing well! Economy is fixed, nothing to worry about.

Edited by rollover

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Inflation up and stock market doing well! Economy is fixed, nothing to worry about.

No need to reform the banking system, or for house prices to become affordable to the average worker, or for businesses to shape up and become productive and competitive - just have the central bank print money keeping the banks afloat and asset prices high and devalue the currency.

What a stonkingly brilliant plan that has been, I can't understand why nobody thought of doing it during past economic crises. They must have been stupid back then and lacking the insight of our modern captains of the economy.

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Most UK people know by now that Germany is far better run than the UK and they've left the UK well behind and getting even further and further behind.

Which country should the UK be compared with these days. Perhaps Spain or Italy or Greece and South America although generally speaking at least they have warm climates so things like domestic heating costs won't be so critical.

It's probably a bit too early to directly compare the UK with the likes of Zimbabwe but slowly and surely the UK's "leaders" seem intent on getting the UK's economy there.

Edited by billybong

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No need to reform the banking system, or for house prices to become affordable to the average worker, or for businesses to shape up and become productive and competitive - just have the central bank print money keeping the banks afloat and asset prices high and devalue the currency.

What a stonkingly brilliant plan that has been, I can't understand why nobody thought of doing it during past economic crises. They must have been stupid back then and lacking the insight of our modern captains of the economy.

They did but they're thinking really big now.

Edited by billybong

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Inflation up and stock market doing well! Economy is fixed, nothing to worry about.

Great. So besides properties here costing almost double what they cost there ("see my forum sig."), now our electricity will be almost double as well... Brilliant...

Total fecking morons, all of them.

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  • 243 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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