You would think that lately prices of oil, gas and electricity could only rise. But this is not true. For some reason the price of oil, and therefore the price of gas, has gone down the last few months. As you can see in the diagram, the price per therm of wholesale gas has risen until September 2008. In the first half of this year, the price jumped from 60 pence to a 100 pence per therm. But in de second half, prices had been cut to 60 pence again. The price of oil has slumped recently and the price of gas is connected to the price of oil.
The problem is that energy bills are still not decreasing in the UK. Energy companies are under pressure of the Government. They are told to drop their prices. But the energy companies don’t want to drop their prices yet because they pay for the gas in advance. Mutations, therefore, can’t be passed on immediately. Ian Parrett, of Inenco, said that when the changes come there could be a 15% reduction in electricity prices and a fall in gas prices of between 20% and 25%. The mutation of the prices are expected in March 2009 but it would be more convenient if the wholesale gas price would diminish now because in this time of the year, energy is needed the most.
The problem is that energy bills are still not decreasing in the UK. Energy companies are under pressure of the Government. They are told to drop their prices. But the energy companies don’t want to drop their prices yet because they pay for the gas in advance. Mutations, therefore, can’t be passed on immediately. Ian Parrett, of Inenco, said that when the changes come there could be a 15% reduction in electricity prices and a fall in gas prices of between 20% and 25%. The mutation of the prices are expected in March 2009 but it would be more convenient if the wholesale gas price would diminish now because in this time of the year, energy is needed the most.
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I think that the government shouldn’t press so hard on the energy companies. Of course it is better for every household if the gas is cheaper but energy is something we have to be careful with and it is worth to pay a little more for it. Fossil fuels are obviously running out. I don’t know how these prices suddenly can drop but eventually they will keep on rising because oil and gas is only going to become more rare. I think it is not wrong if the energy companies do not cut down the prices even when energy is cheaper for a while. I suggest they put the extra money earned in search for green energy.
If the bills would drop, households will start to spoil energy I think. It will be an impulse for people to be less careful with energy.
I think that the government shouldn’t press so hard on the energy companies. Of course it is better for every household if the gas is cheaper but energy is something we have to be careful with and it is worth to pay a little more for it. Fossil fuels are obviously running out. I don’t know how these prices suddenly can drop but eventually they will keep on rising because oil and gas is only going to become more rare. I think it is not wrong if the energy companies do not cut down the prices even when energy is cheaper for a while. I suggest they put the extra money earned in search for green energy.
If the bills would drop, households will start to spoil energy I think. It will be an impulse for people to be less careful with energy.
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