The big five energy companies have at last been persuaded to reduce gas bills by between 4 and 5%. Wow! According to This is Money.co.uk website the wholesale price of gas is presently 1.55p per kWh, the same as it was in 2010. Then the consumer was paying 3.62p/kWh and now we are paying 5.08p/kWh.
So the gas retailers are charging us 40% more than they did in 2010 and making a mark up of 328%. The primary reason for this is the threat by Ed Miliband to put a cap on gas prices if he was returned as Prime Minister in 2015. All the retailers put up prices so there would be enough margin to survive if prices went up significantly. Because that Ed might somehow still get in they cannot risk dropping the retail price back to the 2010 level. Thanks Ed!
It seems like a really good business to be in with captive consumers. There are a number of problems with the present set-up, such as British Gas being both wholesaler and retailer so in effect has control of the gas market.
The other big retailers all try to compete with each other by trying to confuse the consumer that their price structure offers the best deal. Conversely they try to keep the retail price as high as possible to maximise profits. In effect this narrows the retail price window close to that set by British Gas.
I suppose this all came about because of an EU dictate that there must be competition in the energy supply market. It also of course allows other EU nations to become big players in the energy supply market of this nation.
This all leads to three things that I am not happy with. The competition is not real because there is only one wholesaler. The wholesaler being a retailer calls the shots and there is little price competition between retailers. Other nations having ownership of part of the gas supply of this nation is potentially dangerous. The safest route would be to re-nationalise the gas supply market with one source and one government-controlled retailer.
To further complicate the issue, when supply from the North Sea gas fields is insufficient for our needs we import it from Norway via the North Sea pipe and from Russia via the pipeline running through the Ukraine.
Now that the EU is applying financial sanctions to Russia against its intervention in the Ukraine the next step in the cold war has now been taken by Russia. It is to divert the gas pipeline from going through the Ukraine and will instead go to Turkey. There it will have an outlet to sell to the rest of the World when Russia finally retaliates against the EU and switches off its gas supply.
The energy policy of the coalition and Labour has been to support renewables to the tune of £200b according to Lisa Buckingham on This is Money.co.uk . The Liberals and the Greens scream from the rooftops every time someone suggests we get on with fracking, which would quickly bring us back to self-reliance with gas.
Maybe they actually don’t want self-reliance for the nation but want us to be reliant on the good favour of our ‘friends’ on the continent. All part of one big happy family with our gas supply reliant on them, our industries controlled by regulation, our fishing waters and quotas now almost below viability, and our farmers unable to earn enough from producing crops or dairy products but able to survive by covering our fields with solar farms and wind turbines.
When you look at it like this you can see how the EU is relentlessly applying a stranglehold on this nation. I still cannot understand why the establishment parties go along with this.
It is clearly time to sweep them away and get some clear thinking on all aspects of self- reliance for the UK.
Fortunately there is now a party of clear thinkers and straight talkers who are not the same as them. We have to take this message to the people and ask them to help put the Great back into Britain.