£2,000 Fuel Bills On The Way, Consumers Warned

[interestrateripoff]

http://www.theguardian.com/business/2013/nov/12/fuel-bill-increases-edf-big-six

Householders have been warned that energy bills could rise by almost 50% over the next six years as EDF became the latest big six supplier to announce inflation-busting gas and electricity price increases.

A new report from the government spending watchdog, the National Audit Office, also stokes the price row by claiming that ministers "do not know" whether power bills will be affordable in years to come, as multibillion pound infrastructure investment pushes up tariffs.

The success of privatisation...

[TheCountOfNowhere]

http://www.theguardian.com/business/2013/nov/12/fuel-bill-increases-edf-big-six

The success of privatisation...

Crowds with flaming torches and pitch forks on their way more like.

[EUBanana]

Not too surprising, given how the government seems to be doing all it can to push up prices. Not building any power plants, a devotion to greenery, printing money etc.

[thirdwave]

http://www.theguardian.com/business/2013/nov/12/fuel-bill-increases-edf-big-six

The success of privatisation...

As would be expected from any self respecting HPCer, I'm well ahead of the curve on this one so already paying over 2k pa for dual fuel at my modest abode..any guesses when Help2Heat is likely to launch guys?

[VeryMeanReversion]

Most of my house is now covered with 150mm of this stuff to get good U values.

My expectation was that endless money printing shows up in energy prices first, then everything else.

Unfortunately, it also shows up in house prices ...... until interest rates go up.

[fluffy666]

Not too surprising, given how the government seems to be doing all it can to push up prices. Not building any power plants, a devotion to greenery, printing money etc.

Actually it's very simple: A complete dependence on Natural Gas. The 'dash for gas' had lots of superficial appeal... cheap at the time because of a blow-off of north sea gas, reduction in CO2 emissions, low capital costs compared to coal and nuclear.. looks like trebles all round.

The problem is that it effectively left UK energy bills absolutely dependent on the price of gas. Whereas previously you could at least choose between electricity and gas because they had different sources, now there is only one fuel, with electricity being 'pre burnt gas'.

And that would have been OK if the whole economics of the situation had not depended on the relatively small North Sea gas resource for the UK, which was exploited in world-record time (really; no other country has managed to burn it's way through an endowment so quickly). Now we are completely exposed. And our privatized utilities seem incapable of or unwilling to do anything about it (why would they? making out like bandits..)

'Green levies' are a distraction; although I think that they should come out of general taxation, being highly regressive, the money is used to reduce people's energy consumption through things like insulation schemes; market economics suggests that this will lead to cheaper fuel costs all round, so it will be partly self-financing. But the energy companies like having a target to blame.

Personally... I think that the government should be in the business of making energy in all forms cheap, plentiful and with restrained environmental consequences. For example; a serious nuclear program (Things like Thorium breeders) can only happen with full and active government involvement; the alternative is like Hinkley Point where you end up bribing foreign companies to build a legacy-design reactor at fantastic cost. More exotic schemes that go alongside this - synthetic fuels, passivehaus construction, serious volumes of renewables.. the private sector has managed none of these in the past and shows no sign of doing so in the future, so the government has to do it.

The focus should be on cheap and plentiful with minimal pollution, over a few decades. Hair shirt environmentalism won't work (I like hot water and driving a car. So there..) Leaving it to energy companies doesn't seem to work either, they are quite happy to blame taxes or international gas prices whilst making a steady profit and doing nothing about it.

[19 year mortgage 8itch]

Most of my house is now covered with 150mm of this stuff to get good U values.

My expectation was that endless money printing shows up in energy prices first, then everything else.

Unfortunately, it also shows up in house prices ...... until interest rates go up.

Good advice for all those young people increasingly priced out of homeownership.

http://www.housepricecrash.co.uk/forum/index.php?showtopic=194681&pid=909429226&st=0entry909429226

Still I'm sure the nation's extremely sensible and generous private rental sector landlords will do their best to ensure their customers stay warm and dry for minimal energy costs.

http://www.housepricecrash.co.uk/forum/index.php?showtopic=194577&pid=909429219&st=50entry909429219

****** LVT, start with an EPC tax.

[btl_hater]

So, £2000 fuel bills, housing so expensive that it takes up the majority of working income and either means buying a box for half a million quid or paying some slumlord for a craphole, huge debts from university. The future for the UK young looks so appealing!

Surely things can only end one way now for the UK.... very badly.

[Tankus]

My biggest expense is council tax , its 3 times what my total annual power consumption is.

[Compounded]

My dad did his house up in the late 1960's was advised by the architect it was cheaper to get a bigger boiler than install insulation.

That's how cheap fuel was then, just an anecdotal, but I found it interesting.

[StainlessSteelCat]

Most of my house is now covered with 150mm of this stuff to get good U values.

My expectation was that endless money printing shows up in energy prices first, then everything else.

Unfortunately, it also shows up in house prices ...... until interest rates go up.

Yes, I've done the same for similar reasons. PV on the roof as well, Woodburning stove in the living room. Moved a G rated house to C.

Good advice for all those young people increasingly priced out of homeownership.

Still I'm sure the nation's extremely sensible and generous private rental sector landlords will do their best to ensure their customers stay warm and dry for minimal energy costs.

****** LVT, start with an EPC tax.

All good points. The state of rentals is appalling in this country. The last one I had the gas fire condemned and so no heating at all during the cold winters of 10/11. We had frost on the inside of a wooden door it got that bad. Needless to say, even the basics like double glazing or even a properly fitting front door weren't in place.

My biggest expense is council tax , its 3 times what my total annual power consumption is.

Same here - and I live in a terrace house FFS. I'd have to move to a dog kennel on the local council estate to get it lower. Having lived on plenty of council estates in the past I don't intend to repeat the experience due to the chronic ignorance and xenophobia of the average inhabitant.

My dad did his house up in the late 1960's was advised by the architect it was cheaper to get a bigger boiler than install insulation.

That's how cheap fuel was then, just an anecdotal, but I found it interesting.

It's fascinating watching something like the Good Life nowadays. No-one ever worries about energy costs and none of the homes have any energy saving measures.

[Rare Bear]

Yes, I've done the same for similar reasons. PV on the roof as well, Woodburning stove in the living room. Moved a G rated house to C.

All good points. The state of rentals is appalling in this country. The last one I had the gas fire condemned and so no heating at all during the cold winters of 10/11. We had frost on the inside of a wooden door it got that bad. Needless to say, even the basics like double glazing or even a properly fitting front door weren't in place.

Same here - and I live in a terrace house FFS. I'd have to move to a dog kennel on the local council estate to get it lower. Having lived on plenty of council estates in the past I don't intend to repeat the experience due to the chronic ignorance and xenophobia of the average inhabitant.

It's fascinating watching something like the Good Life nowadays. No-one ever worries about energy costs and none of the homes have any energy saving measures.

When my father installed central heating in about 1978 the fuel would have been about one shilling and thruppence, 1/3 or just under 8p per gallon. OK, he hot it a bit cheaper than most people because he bought a lot of fuel. The thing is, he did insulate the extension that he built at that time.

[Habeas Domus]

My biggest expense is council tax , its 3 times what my total annual power consumption is.

Another interesting comparison to ponder is how much you spend on RENT vs how much TAX you pay.

for people in a half decent job with savings and renting a small place (like many HPCers) add up income tax + savings tax, + council tax + VAT

[Tankus]

If I was renting my house... 1.5 times monthly rent = annual council tax bill.

Total combined annual energy consumption = just over half a months rent give or take........take mostly.