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British Gas Planning 10% Rate Rise

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Inflation busting, or just inflation busting out?

http://www.thisismon...price-rise.html

British Gas 'planning 10% price rise' that will take average bills to £1,500 a year and pile pain onto families as winter set in

  • Other suppliers predicted to follow in raising prices
  • Rise would be four-times rate of inflation

By Ed Monk

PUBLISHED: 13:06, 20 September 2013 | UPDATED: 13:25, 20 September 2013

Families face a new squeeze on their finances this winter after reports that the nation's largest energy supplier British Gas is preparing an inflation-busting 10 per cent rise in bills.

Reports today claim that British Gas, which has 12million customers, will up prices next month in time for the winter when households use the most gas and electricity.

British Gas currently charges the average user £1,340 for 'dual-fuel' gas and electricity. A 10 per cent rise would take the bill to £1,474.

British Gas is almost certain to be joined in raising prices by the other 'Big Six' suppliers - Scottish & Southern Energy, Scottish Power, npower, EDF Energy and E.On. The planned rise in bills is far ahead of general inflation. Earlier this week the official measure showed prices 2.7 per cent higher now than a year ago.

British Gas would not confirm or deny that it is planning to raise bills. 'We won't comment on market speculation', a spokesman said.

Scott Byrom, energy expert at price comparison website UKPower.co.uk, said: 'Ninety five per cent of people we polled this week said they've been expecting a price rise. However, it still comes as a slap in the face for consumers, particularly as it's no coincidence coming at precisely when the heating goes on.'

Despite ever rising bills, energy suppliers claim it is harder and harder to make any money from supplying domestic customers. Regulator Ofgem reported last week that suppliers now make £65 per year from customers, down from £90 earlier this year.

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The endgame is Generation Y renationalising it all in 10 years.

If only..

Re-nationalise all utilities NOW. The so called markets (or the twisted derivative of) has had had its chance and they've blown it.

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Guest eight

Excellent. Just as in the case of houses, rising prices like this can only be a good thing!

Fortunately I hear it's going to get warmer year on year.

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It is great news.

(If you borrow huge sums of money to buy it, then make huge sums of money in selling it on to the younger generation.)

Not a bad idea. How much would it cost to build several massive gas storage towers?

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Chickens coming home to roost!

The housing stock in the UK is old and efficient, just like the political and banking systems. There needs to be a national plan to demolish the old Victorian and 1930's housing stock and replace it with energy efficent housing with parking and other modern convinces.

Building on green belt is absolutely necessary, of course this will not happen and gas bills will be circa £5k per year for your average BTL s poorly insulated terrace.

http://en.wikipedia.org/wiki/Energy_efficiency_in_British_housing#Existing_housing_stock

Existing housing stock

Even if all new housing does become zero carbon by 2016, the energy efficiency of the remainder of the housing stock would need to be addressed.

The 2006 Review of the Sustainability of Existing Buildings revealed that 6.1 million homes lacked an adequate thickness of loft insulation, 8.5 million homes had uninsulated cavity walls, and that there is a potential to insulate 7.5 million homes that have solid external walls. These three measures alone have the potential to save 8.5 million tonnes of carbon emissions each year. Despite this, 95% of home owners think that the heating of their own home is currently effective.[54]

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I wonder if this kind of thing stirs our monetary guardians at the Bank of England from their corpulent slumber for even a moment anymore. I guess not.

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Re-nationalise all utilities NOW. The so called markets (or the twisted derivative of) has had had its chance and they've blown it.

Do you remember the utilities pre-privatisation?

Growing up as a child in the late '70s and '80s, I remember phone charges so high that a 3-4 minute conversation with relatives in south Wales was a rare treat. If you were unlucky enough to live in a property without a phone line and wanted one put in, you joined a 3-4 year waiting list. Gas and electricity was a lot cheaper in real terms than it is now, but that is because North Sea oil was only just becoming available. Supply interruptions were frequent due to a combination of decaying infrastructure and strike-happy workforce. A large supply of candles and a paraffin heater was standard equipment in every home during this period, and they saw regular use.

The main reasons utility bills are spiralling out of control are:

1. North Sea oil is running out

2. Governments of both colours failed to anticipate and plan for this, e.g. by building large-scale storage facilities for imported gas and replacing the UK's nuclear power stations

3. The large-scale taxation on energy to fund 'green' sources of alternative energy production that fundamentally don't work, principally birdie blenders.

Utility companies' profit margins are not a significant component of the overall bill compared to these three factors.

You only need to look at the cost of telecommunications and the range of telecom services available now compared to when British Telecom was a state monopoly, and the cost and range of passenger air travel services available now compared to when British Airways had an effective state monopoly on most routes realise that privatisation is not in itself the problem.

Edited by The Ayatollah Buggeri

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Do you remember the utilities pre-privatisation?

Growing up as a child in the late '70s and '80s, I remember phone charges so high that a 3-4 minute conversation with relatives in south Wales was a rare treat. If you were unlucky enough to live in a property without a phone line and wanted one put in, you joined a 3-4 year waiting list. Gas and electricity was a lot cheaper in real terms than it is now, but that is because North Sea oil was only just becoming available. Supply interruptions were frequent due to a combination of decaying infrastructure and strike-happy workforce. A large supply of candles and a paraffin heater was standard equipment in every home during this period, and they saw regular use.

Umm we had massive resilience in the power grid prior to privatisation thanks to the CEGB. The only reason for outages was industrial action (power workers and the miners mainly with railway workers chipping in).

Also our houses were lit with 100 watt light bulbs and valve colour TV's that would easily use three times that. I can recally my father in the 70's though saying 'electricity was cheap' and didn't worry so much about leaving a light on. I can recall leccy costing about 5p per kwh. Now I have to think about leaving a computer on which without the monitor uses less than an old fashioned light bulb.

Yes Telecoms were really only just getting off the ground. My parents didn't have a home phone till the 70's and quite often you had to wait, on a waiting list and if you were really unlucky you ended up with a 'party line." Every phone had to be installed by a Post Office engineer.

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Guest eight

Do you remember the utilities pre-privatisation?

Growing up as a child in the late '70s and '80s, I remember phone charges so high that a 3-4 minute conversation with relatives in south Wales was a rare treat. If you were unlucky enough to live in a property without a phone line and wanted one put in, you joined a 3-4 year waiting list. Gas and electricity was a lot cheaper in real terms than it is now, but that is because North Sea oil was only just becoming available. Supply interruptions were frequent due to a combination of decaying infrastructure and strike-happy workforce. A large supply of candles and a paraffin heater was standard equipment in every home during this period, and they saw regular use.

The main reasons utility bills are spiralling out of control are:

1. North Sea oil is running out

2. Governments of both colours failed to anticipate and plan for this, e.g. by building large-scale storage facilities for imported gas and replacing the UK's nuclear power stations

3. The large-scale taxation on energy to fund 'green' sources of alternative energy production that fundamentally don't work, principally birdie blenders.

Utility companies' profit margins are not a significant component of the overall bill compared to these three factors.

You only need to look at the cost of telecommunications and the range of telecom services available now compared to when British Telecom was a state monopoly, and the cost and range of passenger air travel services available now compared to when British Airways had an effective state monopoly on most routes realise that privatisation is not in itself the problem.

Energy is a natural monopoly. Telecommunications not so much.

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Energy is a natural monopoly. Telecommunications not so much.

Well, telecommunications were a natural monopoly due to extremely high fixed infra-structure costs (buried lines etc). Thankfully a new technology came along (mobile phones) that ended all that.

Energy still is a natural monopoly. You can change the billing provider but at the end of the day everything else comes via the same private monopoly system.

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Do you remember the utilities pre-privatisation?

Growing up as a child in the late '70s and '80s, I remember phone charges so high that a 3-4 minute conversation with relatives in south Wales was a rare treat. If you were unlucky enough to live in a property without a phone line and wanted one put in, you joined a 3-4 year waiting list. Gas and electricity was a lot cheaper in real terms than it is now, but that is because North Sea oil was only just becoming available. Supply interruptions were frequent due to a combination of decaying infrastructure and strike-happy workforce. A large supply of candles and a paraffin heater was standard equipment in every home during this period, and they saw regular use.

The main reasons utility bills are spiralling out of control are:

1. North Sea oil is running out

2. Governments of both colours failed to anticipate and plan for this, e.g. by building large-scale storage facilities for imported gas and replacing the UK's nuclear power stations

3. The large-scale taxation on energy to fund 'green' sources of alternative energy production that fundamentally don't work, principally birdie blenders.

Utility companies' profit margins are not a significant component of the overall bill compared to these three factors.

You only need to look at the cost of telecommunications and the range of telecom services available now compared to when British Telecom was a state monopoly, and the cost and range of passenger air travel services available now compared to when British Airways had an effective state monopoly on most routes realise that privatisation is not in itself the problem.

We don't actually know what their profit margins are. We know what they claim them to be but that's based on their supposed wholesale costs. But since they are all integrated providers whom dominate the wholesale market, it's going to be quite readily possible for them to manipulate those wholesale prices higher, thus shifting margins from the political "hot potato" of end user consumer-based profits, to production profits.

Then add in all financial games they play with intercompany loans and the like (why is Npower UK borrowing £2.3 billion from a company it owns based in malta????), and those low profit margins they supposedly make will be as accurate as a monkey rolling dice.

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So people are going to start being cold in winter, so that Carney can keep his stupidly low interest rates. People going hungry should not be far behind. For their own good, of course. The people of Britain being cold and hungry is a small price to pay for a 'healthy economy'.

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So people are going to start being cold in winter, so that Carney can keep his stupidly low interest rates. People going hungry should not be far behind. For their own good, of course. The people of Britain being cold and hungry is a small price to pay for a 'healthy economy'.

whilst LLs gorge as Carney showers them with wealth.

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So people are going to start being cold in winter, so that Carney can keep his stupidly low interest rates. People going hungry should not be far behind. For their own good, of course. The people of Britain being cold and hungry is a small price to pay for a 'healthy economy'.

To be fair I don't see much evidence yet of people going hungry. On the contrary in fact. We all probably could cut our calorie intake by 10% or so, or at least back to 60/70's portions.

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