Joined: Oct 22, 2005 Posts: 709 Location: European Capital of Kulcha 2008
Posted: Thu Jul 27, 2006 10:04 am Post subject: Re: UK EDF Gas&Electricity Prices to Rise
Cran wrote:
I'm still not sure why edf (and a couple of other suppliers) are offering fixed price until 2010...
Haven't they figured out that it's going to keep getting more expensive...?
Someone will no doubt provide a definitive answer for that one. My guess, is that EDF and co 'buy in' their gas supplies for a set number of years in advance, at a contractually obligated rate, from the producers - which allows for fixed price setting for that relatively small number of customers who take up the option. That way, whatever price rises subsequently occur, it doesn't affect the price EDF has already committed to paying for its own supply, and doesn't impact on profits.
Joined: Apr 06, 2005 Posts: 999 Location: 38 km west of Warsaw, Poland
Posted: Thu Jul 27, 2006 4:21 pm Post subject: Re: UK EDF Gas&Electricity Prices to Rise
Seriously, a good cold weather sleeping bag is one of the best investments you could ever make. Do it now while they are available cheap. You can always forage for food and water the next day, but only if you made it through the night and didn't fall prey to hypothermia. _________________ Remember, with globalisation "everyone is a winner" in the "race to the bottom". - rogerhb
Any sufficiently advanced technology is indistinguishable from magic. A.C. Clarke
Joined: Jun 02, 2004 Posts: 1078 Location: Bristol, UK
Posted: Fri Jul 28, 2006 12:16 am Post subject: Re: UK EDF Gas&Electricity Prices to Rise
EDF are to increase their gas prices by 19% and British Gas theirs by 12.4%. These price rises need to be taken together with the quarter one increases from these companies of 14.7% and 22% respectively - together this means both companies (coincidentally?) have increased the retail price of gas by 37% this year.
Gas prices up again
These increases were absolutely inevitable. The question is what happens to electricity supply. Last winter coal supplied 18 per cent more electricity than in the same period a year earlier, while gas supplied 17 per cent less. The country is dramatically shifting from gas to coal.
Also note the 31% increase in electricity imports! _________________ "Everything is proceeding as I have foreseen." The Emperor (Return of the Jedi)
The Oil Drum: Europe
Posted: Fri Jul 28, 2006 2:07 am Post subject: Re: UK EDF Gas&Electricity Prices to Rise
OMG! I really, really have to get going on the study I want to present to the Council about the energy crisis! I'm seriously thinking of taking a holiday of a week to do it. We really are at the tipping point.
And I'm sooo glad I accepted the offer of EDF to remain with fixed prices for a couple of years. I recommended everybody to do it, but many people weren't bothered. I hope they all remember my advice now.
Joined: Oct 22, 2005 Posts: 709 Location: European Capital of Kulcha 2008
Posted: Fri Jul 28, 2006 4:14 am Post subject: Re: UK EDF Gas&Electricity Prices to Rise
Our household shaves off unnecessary expenditures with the help of email updates from Martin Lewis (the UK 'Guardian' newspaper's money-saving expert). For what it's worth, the following excerpt is his own current advice on the UK domestic gas situation. It's worth visiting his no-cost website:
where we've picked up everything from free albums from the itunes store - to similarly free ferry trips to Ireland and France. Every little helps!
' . . . British Gas has just announced a 12.4% gas price rise and 9.4% electricity price rise effective 4 September. You'll read comments telling you 'switch, switch, switch', yet that message is pumped by companies with a vested interest in churning the market. Actually the sensible thing to do is sit tight!
Please tell/forward this to people who are interested, to save them making a mistake
Why you shouldn't switch now
What British Gas does, others follow, so if you do a comparison to find your cheapest supplier today, it's likely any savings detailed will be eaten up tomorrow or next week when that company announces a price rise too. Yet this isn't what you hear in the media, as some energy comparison services grasp the PR opportunity and yell 'switch supplier now'. Unsurprising really as each switch nets them £20 to £60.
When to switch?
Once all players have made their price rise announcements and it's as near to a level playing field as possible. This will probably be in four to six weeks. It's not a science, but after monitoring the market, at that point I will change my best guess to 'TIME TO SWITCH!' and this note will be included in that week's Money Tips e-mail. For those who don't get that email directly (i.e. this has been forwarded), you can join the free e-mail's distribution list or view old tips as examples.
The only people who should switch right now!
If you've never changed supplier before, i.e. you use British Gas for gas and your regional electricity company for electricity then you're paying so much over the odds, whatever move you make should save you cash. To do that read the full Find the Cheapest Energy Provider and Get Cashback article to find out how to do it the best way.
British Gas' disgraceful behaviour
Of course none of this mitigates British Gas' disgraceful price rise. Centrica, British Gas' parent company, announced record £1.5 billion profits this year and to argue this is about wholesale gas prices is nonsense. To protect and keep its enormous customer base, a legacy from its once monopoly, it could’ve chosen to take the hit itself, and slightly shrink some of its enormous profits.
Still, by acting like a savvy consumer and timing it right you may not be able to cut the cost of your energy, but you should be able to mitigate future price rises somewhat.
Joined: Aug 20, 2005 Posts: 34 Location: Ununited Kingdom
Posted: Fri Jul 28, 2006 5:01 am Post subject: Re: UK EDF Gas&Electricity Prices to Rise
Quote:
Why you shouldn't switch now
What British Gas does, others follow, so if you do a comparison to find your cheapest supplier today, it's likely any savings detailed will be eaten up tomorrow or next week when that company announces a price rise too. Yet this isn't what you hear in the media, as some energy comparison services grasp the PR opportunity and yell 'switch supplier now'. Unsurprising really as each switch nets them £20 to £60.
Sort of agree with the above, except that I switched my electric this week (don't have gas supply), and as well as saving about £5 a month on my current prices it's also now fixed until July 2010...
Could have saved more by not taking the fixed price, but I figured I'll more than make that back when the prices go up again, and again, and again...
I'd suggest looking for the best deal with a fixed price and see if it's worth switching to now...
Joined: Jun 02, 2004 Posts: 1078 Location: Bristol, UK
Posted: Fri Jul 28, 2006 7:13 am Post subject: Re: UK EDF Gas&Electricity Prices to Rise
untothislast wrote:
Of course none of this mitigates British Gas' disgraceful price rise. Centrica, British Gas' parent company, announced record £1.5 billion profits this year and to argue this is about wholesale gas prices is nonsense. To protect and keep its enormous customer base, a legacy from its once monopoly, it could’ve chosen to take the hit itself, and slightly shrink some of its enormous profits.
I'm not sure this is right. Centrica is a vertically integrated company meaning they have the fingers in the pie all along the value chain. This doesn't mean however they can cross subsidise one part of the business with another as you are suggesting. That would be in breach of anti-competition laws and I’m sure the shareholders would have something to say about Centrica’s upstream business subsiding the British consumer.
Perhaps the best way to offset these inevitable increases it to by shares in the upstream oil & gas business! _________________ "Everything is proceeding as I have foreseen." The Emperor (Return of the Jedi)
The Oil Drum: Europe
The differences between price rises between suppliers is almost meaningless, the cheaper ones just haven't announced their more recent hike yet.
Interesting to see how the important things in life like water, energy, shelter and transport are increasing in price far quicker than the official rate of inflation. I guess it's okay though since DVD players can be bought for £20 these days compared to over £100 3 years ago.
Quote:
Figures issued by the economists Ernst & Young show that people have 10 per cent less money for so-called discretionary spending than five years ago.
Ruth Lea, the director of the Centre for Policy Studies, said the rise in fuel bills hit the poorest people hardest.
"People will have to borrow more if they want to maintain their current way of life, or they will have to cut their spending. Inevitably some will get into more debt, but it is like a hangover: they will need to sober up the next day. Some people keep drinking, of course, but they will end up with a worse hangover."
_________________ "Everything is proceeding as I have foreseen." The Emperor (Return of the Jedi)
The Oil Drum: Europe
Joined: Oct 22, 2005 Posts: 709 Location: European Capital of Kulcha 2008
Posted: Fri Jul 28, 2006 12:17 pm Post subject: Re: UK EDF Gas&Electricity Prices to Rise
clv101 wrote:
I'm not sure this is right. Centrica is a vertically integrated company meaning they have the fingers in the pie all along the value chain. This doesn't mean however they can cross subsidise one part of the business with another as you are suggesting.
Don't forget, this is Martin Lewis' view of the situation, and not necessarily mine (which is why it was originally offered with the caveat: 'for what it's worth'). I just thought it might be instructive to share the advice being given out by someone considered to be authoritative in respect of personal money management issues. Most of the contributors to this forum are naturally way ahead of him, and his peers, when it comes to peak oil/gas related topics. But it's interesting nonetheless to see how more and more people are being dragged towards an understanding of the peaking scenario, via the numerous spiralling claims being made on their wallets.
Maybe I should forward this site's internet address to him for a crash course - in the course of the crash.
Joined: Oct 02, 2005 Posts: 284 Location: North Wales , UK
Posted: Sat Jul 29, 2006 12:44 pm Post subject: Re: UK EDF Gas&Electricity Prices to Rise
Quote:
I reckon if they changed the inflation rates to reflect different catagorys of earners , you would find that real inflation is a lot higher for the poorer guys n gals having to pay for just the essentials which are rocketing in price.
clv101
Many thanks for posting that graphic , it basically backs up what I was saying in one of my previous posts.
Theres an "overhead" to living which most people have to deal with. The bigger your income then the smaller the impact is of this overhead.
When your on a small income , when you start getting encircled by ever increasing gas , electricity , petrol , council taxes and so on , the less relevant the alleged 2.3% inflation rate becomes. Very frustrating when your boss points to the inflation rate (if) when your annual pay increase comes through.
When the high street starts screaming because people arent spending everyone will know why !
Paul _________________ All that it takes for evil to triumph is for good men to do nothing.
Joined: Oct 02, 2005 Posts: 284 Location: North Wales , UK
Posted: Thu Aug 17, 2006 1:54 pm Post subject: Re: UK EDF Gas&Electricity Prices to Rise
Just to bump this topic along again ....
POWERGEN now follow on with a price rise of their own , here
Quote:
The company's domestic gas prices will go up by 18.4% and its electricity prices by 9.7% from 21 August.
Looking back at the great graphic that clv101 provided then Powergens rises would total at 93% for gas , and 58% for electricity since Jan 03, this brings Powergen inline with some of the higher charging utility providers.
Paul _________________ All that it takes for evil to triumph is for good men to do nothing.
The energy minister, Malcolm Wicks, said rising demand and plunging output from North Sea fields cancelled out the benefits of new gas pipelines from Norway and the Netherlands.
Good luck to you Brits this winter. _________________ "Thank you for attending the oil age. We're going to scrape what we can out of these tar pits in Alberta and then shut down the machines and turn out the lights. Goodnight." - seldom_seen
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