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Reluctant Hero · Posted: Fri Jan 04, 2008 8:53 pm Post subject: Energy prices rise (yet again)

Npower have increased their electricity and gas prices by 12.7% and 17.2%. It is only a matter of time before the other companies follow their lead.

I seem to recall the prices going up by a similar amount last year. With the housing bubble set to burst and oil going through the $100 mark, 2008 could be a tough year.

http://news.bbc.co.uk/1/hi/business/7171345.stm

Double-digit rise in Npower bills

Npower is increasing both gas and electricity prices
Energy firm Npower has announced that electricity prices for its domestic customers will rise by 12.7%, while gas bills will see a 17.2% increase.
Npower, the UK's fourth-largest energy provider, said it had been "forced to put up prices" because of soaring wholesale energy costs.

It said it expected rival energy providers to follow suit with their own price rises "very shortly".

Npower's four million customers will pay the higher prices from 5 January.

'No easy decision'

"Today's decision was not an easy one," said Giuseppe Di Vita, managing director of Npower's residential business.

Npower has given the other suppliers the green flag they've been waiting for

Tim Wolfenden, uSwitch

Q&A: Power bill rises

"We always try to protect our customers for as long as possible but sadly higher energy prices are a fact of life."

Npower said wholesale energy prices for 2008 had increased from last year by 66% for electricity, and 60% for gas.

However, its price rises have already been condemned by independent consumer watchdog Energywatch.

"If this is the shape of things to come over the next few months, we are going to see hundreds of thousands of consumers wonder how they can afford to keep their homes warm," said Energywatch spokesman Karl Brookes.

"Energywatch calls on other suppliers to respond to current high wholesale prices by competing over the long term with good value products, and not to simply load the risk of wholesale prices on their own customers."

'Difficult environment'

Price comparison website uSwitch said it had only been a matter of time before one of the energy suppliers put up its prices.

"By announcing price increases today, Npower has given the other suppliers the green flag they've been waiting for," said uSwitch's head of home services, Tim Wolfenden.

Npower had already increased its online tariff for new customers, raising that by 17% towards the end of last month.

In December, British Gas parent Centrica announced that it was increasing the price of its market tracker tariff, which follows movements in energy market prices.

British Gas went on to warn that rising wholesale prices meant the energy industry was facing a "difficult environment" in 2008.

Record oil prices

Analysts say wholesale gas prices have risen on the back of the record cost of oil, as any increase in the price of crude has a knock-on effect on gas.

Wholesale gas prices in the UK are also said to have been driven higher by the growing number of energy firms on the continent turning to the more liberalised UK market for cheaper supplies.

The higher cost of gas means increased electricity bills because gas accounts for 40% of electricity production in the UK.

UK household energy bills last rose strongly in 2006, with most suppliers increasing their bills to counter higher wholesale prices.

However, prices then subsequently fell back during last year.

Earning power

Npower is the supply business of UK-based RWE Npower, itself a subsidiary of German energy group RWE.

RWE Npower also operates a number coal, natural gas, oil-fired and renewable energy power stations across the UK.

Its most recent full-year financial results show that RWE Npower made an operating profit of 512m euros (£383m) in 2006.

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The Lithgae Jambo · Posted: Fri Jan 04, 2008 9:50 pm Post subject:

...and the returns to the Exchequer increase as well.....
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William_Cleland · Posted: Sat Jan 05, 2008 6:20 am Post subject:

It's probably the shape of things to come. How rapid and how drastic the effects are going to be depends on whether we really are at peak oil globally. Scary thing is we have no way of really knowing for sure as the size of the commercially exploitable oil reserves is a state secret in places like Saudi Arabia and Russia.

mairead · Posted: Sun Jan 06, 2008 9:50 am Post subject:

Aye TLJ,
Few folk realise that as the bills go up so the exchequer coins in even more of our money in the shape of VAT.
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Aventinian · Posted: Sun Jan 06, 2008 1:50 pm Post subject:

mairead · Posted: Sun Jan 06, 2008 6:25 pm Post subject:

Oh they go up all right, but they never come down when the price of oil etc. drops.
Let's face it, we live in rip off Britain.
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Aventinian · Posted: Mon Jan 07, 2008 2:47 am Post subject:

Perhaps so, but I certainly don't think it's a government conspiracy.
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William_Cleland · Posted: Mon Jan 07, 2008 4:04 am Post subject:

Think you are on shaky ground if somebody decided to talk about fuel taxes. Smile

You are right that in general prices are going up because the most easily exploitable sources of petroleum are beginning to run out. It may not be all doom and gloom for Scotland down the road however if CO2 injection techniques can be used to extend the life of North Sea oil fields and/or West Lothian's shale industry becomes economically viable again and is resurrected and/or deep mined coal becomes a major factor again given Scotland still has vast coal reserves.

doodells · Posted: Thu Jan 10, 2008 12:10 am Post subject:

mairead · Posted: Thu Jan 10, 2008 6:30 am Post subject:

I certainly did not intend my post to be regarded as a conspiracy because I don't see it that way.
All I am saying is that when oil etc. goes up so does the cost of fuel. but when oil prices drop, fuel bills don't.
By the way Aventinian, high fuel costs also have cost a number ofvery elderly their lives over the years. Some have a choice of eating or freezing.
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For Scotland, I will give my life

Holebender · Posted: Thu Jan 10, 2008 11:11 am Post subject:

William_Cleland · Posted: Fri Jan 11, 2008 7:37 am Post subject:

I can see what you are saying but there is a limit even to Saudi reserves so it isn't going to last forever. I suppose the optimistic view is that a big part of the supply problem right now isn't just about increased demand in India and China but also about an increased ability of OPEC to inflate the price by deliberately limiting supply as non-OPEC sources like the North Sea decline in output. Beyond that it is funny how when there is no obvious identity politics angle agentmancuso tends to be conspicuous by his absence but he always accuses other people of having an identity politics obsession. Smile

agentmancuso · Posted: Fri Jan 11, 2008 10:35 pm Post subject:

Aventinian · Posted: Sat Jan 12, 2008 4:12 am Post subject:

mairead · Posted: Sat Jan 12, 2008 9:12 am Post subject:

Aventinian,
If you were not so confused you'd be dangerous. It was YOU who brought up the conspiracy theory, so don't judge everyone's mind as working the way yours does.
I merely pointed out the advantage to the government of higher fuel costs.
And as a smoker for many years I have probably paid enough in tobacco tax to cover your health needs as well as my own.
Come off the pedestal that you have placed yourself on.
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Reluctant Hero · Posted: Fri Jan 18, 2008 11:50 pm Post subject:

British Gas, which I assume includes Scottish Gas, have just announced a gas price increase of 15%.

http://news.bbc.co.uk/1/hi/business/7195811.stm
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Red Justice · Posted: Sat Jan 19, 2008 8:32 pm Post subject:

I changed over from Hydro Electric to Npower before Christmas after being promised savings in my bill. The Npower prise rise has taken that away.

I thought Npower was an English company it is in fact German.

It is really up to Scots in an energy rich nation to decide whether they want more affordable energy to burn and that won't happen without independence.

I would also expect any Scottish government if and when we get independence to immediately nationalise all these big energy companies if they want to be here in Scotland. Private companies are about corporate capitalism and profits before customer needs.
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Holebender · Posted: Sun Jan 20, 2008 9:40 am Post subject:

Do you think you'll be able to save a few bob by changing suppliers if they're nationalised? You'll pay a lot more for a worse service and you'll just have to lump it.

If a private company doesn't look after its customers' needs it'll soon lose its profits. Nationalised companies couldn't give a stuff about customers, costs, or any of that other nonsense as long as they get their index linked pay rises and pensions.
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Aventinian · Posted: Sun Jan 20, 2008 4:51 pm Post subject:

Aventinian · Posted: Sun Jan 20, 2008 4:57 pm Post subject: