If I see Sid..

[BoldonLad]

Well us of course, either way.

I was wondering if the government were going to get consumers to pay direct by raising the cap (wildly unpopular) or indirectly get us to pay by chucking a bunch of money at some large suppliers (also wildly unpopular).

Looks like they went with the former.

In competely unrelated news, British Gas had doubled profits in the first 6 months of 2021 compared with the first 6 months of 2020.

My understanding is/was that the price cap was reviewed (aka increased) every 6 months, as a matter of course?

But, no matter, WE will be paying. One slight consolation, I do have some British Gas Shares.

 

[Bromptonaut]

My understanding is/was that the price cap was reviewed (aka increased) every 6 months, as a matter of course?

That exactly. The cap was originally proposed by Ed Miliband and condemned by the Tories as Socialist interference in the market. They then stole the policy as their own. I suspect the main beneficiaries, before the current crisis, were older people who never thought to look for a change; Tory voters.

At the moment though even the new cap may be below what gas delivered to the meter actually costs.

 

[BoldonLad]

That exactly. The cap was originally proposed by Ed Miliband and condemned by the Tories as Socialist interference in the market. They then stole the policy as their own. I suspect the main beneficiaries, before the current crisis, were older people who never thought to look for a change; Tory voters.

At the moment though even the new cap may be below what gas delivered to the meter actually costs.

exactly. As I understand it, that is one of the root causes of the problem.

 

[Archie_tect]

exactly. As I understand it, that is one of the root causes of the problem.

Except British Gas have announced higher than expected half-year profits.

 

[BoldonLad]

Except British Gas have announced higher than expected half-year profits.

Yes, as I said above, some consolation, if you are a BGas shareholder

 

[BoldonLad]

Except British Gas have announced higher than expected half-year profits.

It was the “small” spot price operators who “caught a cold”, not the big boys.

 

[Archie_tect]

We can thank Thatcher for selling off all the national electric and gas and water and then successive Governments opening up the market to 'competition', except with all the utilities it isn't competition is it- it's just marketing middlemen manipulating the retail sale price.

 

[mjr]

As I understand OFGEM have raised the cap by 12% to prevent any further energy supplier collapses.

Well, that aged badly! Two more collapsed today: BP-funded Pure Planet and Colorado.

 

[BoldonLad]

We can thank Thatcher for selling off all the national electric and gas and water and then successive Governments opening up the market to 'competition', except with all the utilities it isn't competition is it- it's just marketing middlemen manipulating the retail sale price.

Indeed, as I said in post 3 above

 

[mjr]

Price cap from April is expected to be announced in the next few days. 40% increase in electricity unit rate and 110% increase in gas has been suggested by some analysts (and is broadly in line with some one year fixed rates on offer now), due to the record wholesale prices and having to pay for managing the collapsed suppliers.

What's the way out of this? Renewable power collection?

 

[newfhouse]

What's the way out of this? Renewable power collection?

A move to self sufficiency via renewable energy is the only sensible way out. Combine with proper investment in energy usage reduction. Accept that domestic energy supply should be run as a not for profit public enterprise. There are (still) far too many middle men adding nothing but their own profit margin to the process.

 

[Fab Foodie]

As always we're waaay to late but....
Need a power strategy that's nearer to a nationalised system and potentially more localised.
Mega-invest in renewables, insulation of houses, roll-out of heat-pump technology, mini Nuclear from RR, any thing to reduce Gas consumption from the likes of Russia.
Bigger push on electric mobility, cars, public transport etc. Reduce need for Oil
Bigger push on storage of energy projects
Obtain funds from the profits and tax breaks of the fossil fuel industries

Something like that....

 

[mjr]

Comparison of European government reactions. Nothing radical? https://www.theguardian.com/busines...her-european-countries-tackling-energy-crisis