Lee54 Posted July 30, 2008 Share Posted July 30, 2008 British Gas have announced a further 35% increase in the price of gas to take effect immediately, will the Island now see a further price rise. Link to comment Share on other sites More sharing options...
Tempus Fugit Posted July 30, 2008 Share Posted July 30, 2008 as far as I know we don't buy from British Gas, but it will all be linked to the oil price, and as out electric is also driven by gas I think it's inevitable that we will be suitably rewarded for the privilege of keeping warm and using our computers time to start knitting pullovers Link to comment Share on other sites More sharing options...
BPs Posted July 31, 2008 Share Posted July 31, 2008 The Manx Government's lack of action/info whatever, to respond to this alarming situation which will have severe effect on limited or fixed income groups in a few months time when Winter comes, is a complete joke. The UK Gas prices will effect the IOM because we are now linked to them through the MEA with their pipeline. But as the Manx Government seems to have let off the questionable spending of the MEA (loans fiasco etc.) and has confined it to a select committee which means in parliamentary terms "dustbin", what does one expect? Mind you, lets face it, if a few hundred pensioners die from the cold this winter because they cannot pay their heating bills it will help Adolf Teare, our Health Minister's care home budget eh? Link to comment Share on other sites More sharing options...
Celt Posted July 31, 2008 Share Posted July 31, 2008 The UK Gas prices will effect the IOM because we are now linked to them through the MEA with their pipeline. The MEA's gas and Manx Gas come through Ireland, Gas Erin, not the UK as it's bought from the EU. My only fear is the Manx Gas will load the full rises straight onto the consumer without trying to take any costs into their infastructure as they have in the past. Link to comment Share on other sites More sharing options...
Mutley Posted July 31, 2008 Share Posted July 31, 2008 Can someone explain why the cost of Natural Gas is increasing when it has feck all to do with oil? I can understand why LPG would increase as it is a derivative of oil. Is this just plain and simple profiteering? Link to comment Share on other sites More sharing options...
ai_Droid Posted July 31, 2008 Share Posted July 31, 2008 Can someone explain why the cost of Natural Gas is increasing when it has feck all to do with oil? I can understand why LPG would increase as it is a derivative of oil. Is this just plain and simple profiteering? It's rising for the same reaons, not necessarily because it's linked, increased speculation in comodities because equities are so fooked, supply issues outstripping demand, etc. Plus oil fuels everything, even gas extraction. Link to comment Share on other sites More sharing options...
thebees Posted July 31, 2008 Share Posted July 31, 2008 Who cares? it will only really affect the poor, the goverment do not actually care about them. Link to comment Share on other sites More sharing options...
triskelion Posted July 31, 2008 Share Posted July 31, 2008 Apparently British Gas were selling, er, gas, at a loss (selling 90p's worth for 60p), which is why they've raised the price. Link to comment Share on other sites More sharing options...
Tempus Fugit Posted July 31, 2008 Share Posted July 31, 2008 it's only money, according to the Government we're rolling in it, average weekly pay £551 Link to comment Share on other sites More sharing options...
Mutley Posted July 31, 2008 Share Posted July 31, 2008 Can someone explain why the cost of Natural Gas is increasing when it has feck all to do with oil? I can understand why LPG would increase as it is a derivative of oil. Is this just plain and simple profiteering? It's rising for the same reaons, not necessarily because it's linked, increased speculation in comodities because equities are so fooked, supply issues outstripping demand, etc. Plus oil fuels everything, even gas extraction. That doesn't make sense to me. If the price of oil is rising because there's a limited supply released by OPEC onto the market how does that effect the Natural Gas supply/demand? The NG gas fields off Ireland has plenty of reserves and there has been no cap on supply. Surely gas would fuel gas extraction? Why would you pump oil to an offshore gas platform to extract gas when there's a fuel supply there? Link to comment Share on other sites More sharing options...
ai_Droid Posted July 31, 2008 Share Posted July 31, 2008 That doesn't make sense to me. If the price of oil is rising because there's a limited supply released by OPEC onto the market how does that effect the Natural Gas supply/demand? The NG gas fields off Ireland has plenty of reserves and there has been no cap on supply. OPEC have repeatedly said that the price rises aren't a supply issue, in fact demand has done down with the rises. It seems to be more about equities dying and jittery markets than any physical reason, but it's bizzare that nobody actually knows why the prices went so high, and the sames true for gas. At least some of the rise has to be down to market speculation. The NI gas fields are currently providing for about 10% of the country I think? We import most of our natural gas, and it's a tricky thing to transport. Supply isn't just about sucking it out of the ground, it's about refining and transportation too. Demand for gas has also risen sharply as a result of oil prices, as oil becomes more expensive, people switch to gas and the price rises as a result. It's worth nothing that per therm, gas is sill half the price of oil. Surely gas would fuel gas extraction? Why would you pump oil to an offshore gas platform to extract gas when there's a fuel supply there? Because it needs refining before it can be used. Same way oil tankers don't run on crude. I'm in favour of fuel price rises generally, we do need pressure like this to force development of alternatives. It's a shame though that the rises aren't funding that development, or helping protect those that are hard pushed to afford the rises. Link to comment Share on other sites More sharing options...
Tempus Fugit Posted July 31, 2008 Share Posted July 31, 2008 I think half the trouble is investers not putting money into shares, property or banks, and buying options on oil and gas toi make a profit pushing up prices and the reason gas follows oil is if oil goes up why should the gas suppliers supply their energy cheap when they can make more money out of it too Link to comment Share on other sites More sharing options...
triskelion Posted July 31, 2008 Share Posted July 31, 2008 I think half the trouble is investers not putting money into shares, property or banks, and buying options on oil and gas toi make a profit pushing up prices and the reason gas follows oil is if oil goes up why should the gas suppliers supply their energy cheap when they can make more money out of it too Wait, gas suppliers (eg. Manx Gas, British Gas, etc) don't decide prices, do they? That's done in the commodities market, right? Link to comment Share on other sites More sharing options...
Lee54 Posted July 31, 2008 Author Share Posted July 31, 2008 ITV news have it that British Gas have misled the media over gas prices, prices have been increased by as much as 44% in some areas 35% is the minimum increase. It was also nice to hear that British Gas made a profit of £1 billion over the past 6 months, when asked to explain the profits they said that the Company is ran as two, one company the one that produces the gas is the one that made the profit while the one that sells to the public made a undisclosed loss. Link to comment Share on other sites More sharing options...
triskelion Posted July 31, 2008 Share Posted July 31, 2008 No, Centrica, the parent company of British Gas, made £992 million profit. The retail arm, British Gas, as I kind of already said, was operating at a loss. These profits represent a 19% fall on last year I think. The costs of extraction aren't going to have changed much, but what they are selling has boomed in price through no fault of their own. Link to comment Share on other sites More sharing options...
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