Just in time for the winter weather Scottish and Southern Energy will be raising their prices of domestic gas and electricity by about 9% from the 15th October 2012. More than five million customers will have to pay more for gas and electricity and in these days where inflation depending on what you spend is around 3% and where wage inflation is virtually non-existent, these energy prices rises will make it hard for many people to pay their energy bills. Come 2013 the average dual fuel customer will be paying nearly £1300 a year just to keep warm, was in hot water cook and keep the lights on and the appliances in power.
Last year, in 2011, all the major energy companies (that is all six of them) put their prices up. At the beginning of this year they put their prices down by small amounts, probably so that consumers could not claim that prices always go up and never come down. This present price rise of around 9% will not doubt be followed by the remaining five large energy companies. Wholesale gas prices are on the rise, and if we have a very cold winter they will continue to rise, and the energy companies have to pay for improvements to the energy network, so it is hard to see why we all should not be faced with large energy price increases of the next few years.
The scale of the problem of rising energy prices is almost certainly under estimated by the government and the regulator, both of whom enjoy simple and trusting relations with the six energy giants. There are two changes in our energy supply system that can be made which will be considered revolutionary in these days of worship to the God of the Free Market in every aspect of our lives and economy.
The first measure is simple; renationalise the energy companies so that this strategic resource is not in private hands and so that future planning is made without regard to market forces and with regard to need. The second measure is also simple; invert the price pyramid for energy so that people do not get discounts for the more energy they use but get discounts for using less energy.
I cannot see in the present circumstances any of these revolutionary ideas for the securing of energy and for the improvement of the environment will come to pass. The regulator has been well and truly captured by the energy companies and the government has to cope with the economic problems of the day; to do this it will have to stay on its toes, just like a midget at a urinal.
For the hard pressed consumer of energy now would be a good time to get your Genersys solar water heating, which will mitigate the price rise and provide a quicker than ever payback.
Filed under: carbon emissions, solar, solar panels Tagged: | electricity prices, energy prices, gas prices, genersys, midget at a urinal, nationalisation of energy companies, reform of the energy markets, scottish and southern, solar water heating, SSE