Record rise for British Gas bills

Record rise for British Gas bills

news.bbc.co.uk

The UK's biggest domestic energy supplier said that the price hikes would take place with immediate effect.

It blamed "soaring wholesale energy prices", but added that standard tariff prices would not rise again in 2008.

The move comes just a few days after rival EDF Energy put up gas prices by 22% and electricity prices by 17%, with other firms expected to follow suit.

Watchdog Energywatch said it believed the 35% gas bill rise was the biggest single increase in the price of a utility seen to date.

British Gas, which has 15.9 million customers, also announced that its profits for the first half of the year were down by 69% to £166m.

(visit the link for the full news article)

this is PURE BS,
they make 166+ million profit already and say its not enough so they are raising the prices over 7% for electric and 30% for gas.

with the cost of living in the UK rising everyday
this will just put a larger burdin on the people in this country.

most hit will be low income families and pensioners.


one reason i would go for nationalize the main infrontstructure so its controlled by the tax payers and not by some greedy fat aristocat whos out to rip people off.

news.bbc.co.uk
(visit the link for the full news article)

reply to post by bodrul


Now that's fighting talk bodrul, and what party would stand up now and say that as a country we need to nationalise energy.

I think what Government need to do is take a very detailed look at the wholesale energy marketplace in the UK as many of the major industrial and domestic suppliers are both customers and suppliers in the wholesale marketplace, and the energy suppliers are very reluctant to discuss the details of these price hikes. I suspect they do not want a close examination on the wholesale marketplace as this will expose some of their dealings which I suspect if they become public knowledge would force the Government to act.

And it is odd that the price of gas for example in linked to the price of crude oil which has been falling.

The energy suppliers to the like of us members say that have not been passing on the increases but now they have to as their profits are being hit and all the energy suppliers are publically quoted companies if not in the UK around the world and there shareholders did not care about the impact on the end consumers.

I would certainly agree with a tax of some kind of the oil and energy companies if the Government where to ring fence this tax take to help less rich familes better insulation their homes and get energy saving appliances. we could even use this money to fund a major solar panel program in the UK.

Back to my first point, there is no way that the Tories are going to say we should nationalise these energy suppliers as they were the party have sold them off.

And even is Gordon Brown sees this as a good idea, he has bigger things to do like keeping his job and limitied the damage to the Labour party in the next 18 months until the next general election

reply to post by Freedom ERP


if only we actuily had a political party that wasnt motivated by
corruption, Greed, hate.

we havent got a single politcal party that genunily wants to work for the people
i can safely bet that most people that go into politics isnt because they want to serve the people that elect them in but because of all the luxuries the job comes with at the expense of others.

Labour has shown this
the Conservitives have shown this
and so on.

the fact that this is based on price of crude oil is a larger joke
since a few miles away accross the channel they have their prices capped by the goverments so companies cant overcharge their people.

Brown wont do anything since he will most likely lose his bonus from the companies that provide him and his party with funds.

in the end i say screw the shareholders
its not their money that put most the infrontstructure there in the first place,
privatising most things in the UK has made them worst. fine example is the rail network.


a topic a made a while ago
www.abovetopsecret.com...

and one on
democaracy

www.abovetopsecret.com...

reply to post by bodrul


The independent party and the bnp are a good example of supporting our country.

i heard it would raise by about 300% in 5 years.... ohhh well....

reply to post by bodrul


I hear you bodrul, but what can the average person who is going to see their energy raises do?

Most of them will have a pension that is based on the stock market, so in one respect they should be interested as their pension providers will be shareholders on the major energy suppliers.

What about people power? Not really an option as we all need gas and electricity to live. Very few of us can elect to say no to our energy supplier so in the short term, they can do what they like with the price. We just have grin and bear it.

And what of the regulator? Will they ask the Government to look at the wholesale marketplace? If we all hassled the living daylights out of our MPs, at some stage they do something but I guess most people in the UK will just moan and do nothing about it.

We the sheep have elected sheep to look after us!!!

reply to post by Freedom ERP


i plan on fitting solar pannels
in the next few years. (2-3)

some people will let them selves be made fools of
others will do something.

we are sheep either way when it comes to MPs

Yep, Im not happy about this new at all, The only way at the moment is to sign up to a price cap for a year deal, I know im going to leave BG and move to something thats got a price cap for at least a year, My bills are getting bigger and im being more energy wise and its still not helping,

My worry is winter? going to really be looking in to ways to keep the price as low as possible

When Victor Rothschild helped draw up the privatisation package for British Gas he entered a clause which linked Gas prices with those of Oil, this and this reason alone is responsible for the high cost of Gas.

I was fortunate and signed three years ago to npower on a five year fixed rate for my gas supply. I have yet to feel the effect of the rises, I have been contacted by a number of suppliers and 'agents' who have tried to get me to switch, this activity increases prior to any price rise. I strongly suspect collusion, but no matter I know when I am best off.

Heres what they do and I dont care if I offend anyone this annoys me to the HILT!!!! They should hand you your bill with their right hand and with their left hand give you a big bottle of KY Jelly. This is disgusting what these people are doing to working class people. Not only in the UK but in the states too.

reply to post by KilgoreTrout


So then the cost of gas should start to drop as the price of crude drops as well. I wonder if we will see prices drop as quickly but will we get some "woolly" wholesale market statement and that these good folk at the energy suppliers have been generous in not passing the price increases on to us.

And all the major suppliers are quoted on various stock exchanges so they would not be doing anything that impacts profit so any claim that they have not been passing on price increases must be taken with a "pinch of salt"

These companies have continue to make profits and I still believe there is something wrong with the wholesale marketplace as the suppliers will not provide information on their transactions as both suppliers and customers in the energy wholesale marketplace.

Came across your website while I was looking for a video about the price rise.


BBC You Tube video no longer available after only 1 day
yahoo video not available in the UK

I Smell Censorship In The Air

According to a report on BBC News 24 earlier today, the price rise is a ridiculous 43.9% in my area, one of the highest (if not the highest) in the country.

Back to the caves soon, Ladies and Gentlemen. Back to the caves!

To answer points about nationalisation, I don't think the government could afford to do it. British Gas is worth billions, and most of our money is presently tied up in a certain bank that went bust.

What the government certainly could (and what I would do, were I in Gordon Brown's position) do is threaten to apply a big windfall tax to company profits - say, 20% or more - unless the companies bring their prices down, especially for the hardest hit. It's disgusting that some pensioners have to choose between heating their homes or eating. And this is in the UK, a highly developed nation, in 2008!

The energy market is not really a market. Despite there being different companies, it is not competitive. Yes, wholesale gas prices have gone up... but not by anywhere near the amount these companies are charging their customers. I wouldn't be surprised at all to learn that there had been some price fixing going on. I'd ask the Business and Enterprise Select Committee and the Department for Business and Enterprise (which has responsibility for the energy portfolio) to thoroughly investigate this and start hauling some corporate executives into Parliament to answer questions.

I'd be quite interested to see the terms under which British Gas was privatised. I have heard that there's a clause in there stating that a privatised version should primarily serve the public.

Originally posted by Ste2652
To answer points about nationalisation, I don't think the government could afford to do it. British Gas is worth billions, and most of our money is presently tied up in a certain bank that went bust.

What the government certainly could (and what I would do, were I in Gordon Brown's position) do is threaten to apply a big windfall tax to company profits - say, 20% or more - unless the companies bring their prices down, especially for the hardest hit. It's disgusting that some pensioners have to choose between heating their homes or eating. And this is in the UK, a highly developed nation, in 2008!

The energy market is not really a market. Despite there being different companies, it is not competitive. Yes, wholesale gas prices have gone up... but not by anywhere near the amount these companies are charging their customers. I wouldn't be surprised at all to learn that there had been some price fixing going on. I'd ask the Business and Enterprise Select Committee and the Department for Business and Enterprise (which has responsibility for the energy portfolio) to thoroughly investigate this and start hauling some corporate executives into Parliament to answer questions.

I'd be quite interested to see the terms under which British Gas was privatised. I have heard that there's a clause in there stating that a privatised version should primarily serve the public.

The liberal were talking about such a thing,supposedly some of these companies got a big chunk of tax payers money from the government,they were going to use that so the companies cant moan since its *our* money...

Originally posted by Ste2652
What the government certainly could (and what I would do, were I in Gordon Brown's position) do is threaten to apply a big windfall tax to company profits - say, 20% or more - unless the companies bring their prices down, especially for the hardest hit.

This will only raise your gas prices even further. Do you really think the company will absorb a 20% increase in cost without passing it on to the consumer? If you put a 20% windfall tax on the company, they will only pass it on to you.

Originally posted by WhatTheory

Originally posted by Ste2652
What the government certainly could (and what I would do, were I in Gordon Brown's position) do is threaten to apply a big windfall tax to company profits - say, 20% or more - unless the companies bring their prices down, especially for the hardest hit.

This will only raise your gas prices even further. Do you really think the company will absorb a 20% increase in cost without passing it on to the consumer? If you put a 20% windfall tax on the company, they will only pass it on to you.

The companies would use the taxpayers money that was given to them by the government...so they wouldnt be at a loss...if they take the liberal democrats advice that is..

reply to post by WhatTheory


You misunderstand my point, I think.

The 20% windfall tax is a big stick, wielded by the government on behalf of the consumer. The companies in question have the opportunity to help those most in need voluntarily, which would take a much smaller chunk out of their profits. They don't need to make billions of pounds in profit (and we're only a quarter of the way through this financial year) - they can certainly afford to drop prices.

And, as I said, the energy market in the UK is not really a market. It is uncompetitive. When you go and buy, say, food, there are numerous different options open to you and each will sell different things at different prices. There is a great deal of choice for the consumer. In the energy sector, the choice is limited and it seems almost certain that the energy companies have engaged in some back room dealing to 'coordinate' price rises to maximise profits.

The Fundamentals of Central Asian Gas Distribution, aka: Zbigniew Brzezinski's Grand Chessboard.....revisited.


Coincidentally, Asia Times Online reported this major Russian coup...the same day that Centrica announced it's nat-gas price hikes.

Central Asia
Jul 30, 2008

Russia takes control of Turkmen (world?) gas
By M K Bhadrakumar

There must be deep frustration in Washington. In sum, Russia has greatly strengthened its standing as the principal gas supplier to Europe. It not only controls Central Asia's gas exports but has ensured that gas from the region passes across Russia and not through the alternative trans-Caspian pipelines mooted by the US and EU. Also, a defining moment has come. The era of cheap gas is ending. Other gas exporters will cite the precedent of the price for Turkmen gas. European companies cannot match Gazprom's muscle. Azerbaijan becomes a test case. Equally, Russia places itself in a commanding position to influence the price of gas in the world market. A gas cartel is surely in the making. The geopolitical implications are simply profound for the US. Full Text

I would respectfully suggest that we look a bit deeper for causes...beyond British Gas profit margins/price gouging. As is the custom...these recent major developments remain hugely under-reported.

additional excerpt....

The overall implications of these Russian moves are very serious for the US and EU campaign to get the Nabucco gas pipeline project going....

But with access denied to Turkmen gas, Nabucco's viability becomes doubtful. And, without Nabucco, the entire US strategy of reducing Europe's dependence on Russian energy supplies makes no sense. Therefore, Washington is faced with Hobson's choice. Friday's agreements in Ashgabat mean that Nabucco's realization will now critically depend on gas supplies from the Middle East - Iran, in particular. Turkey is pursuing the idea of Iran supplying gas to Europe and has offered to mediate in the US-Iran standoff.

With the success of the critical Nabucco pipeline project, dependent on Iranian gas supply...is there any doubt that there will be NO US supported attack on Iran...and why Brzezinski front-man, Barack Obama, will pursue open dialogue with Tehran...regardless of conservative criticism?

Related:

US Loses Control of Turkmen Gas to Russia

Moscow Times