Gas prices tumbling

[fizzy]

Wholesale that is.
Due to the big increases in fracking in places where the Nimbys aren't in charge the gas prices are dropping like a stone. Gas is now around 0.9p per kw/h.
New homes will be forced to be all electric I understand. Not exactly fair when you have to pay 16p per kwh to subsidise wind and solar.
This will of course also keep oil prices low.

 

[earthman]

Looking forward to a big drop in our gas bill then,.....yeah that's going to happen.

 

[TechnicAl]

I thought Fracking was banned in the UK?

 

[earthman]

I thought Fracking was banned in the UK?

Me too.

 

[Burdekin]

There goes my bonus. I worked hard this year too Fizzy. :-(

 

[Sean]

but much of the cost of electricity is the price of gas used to make it?

 

[TechnicAl]

https://www.statista.com/statistics/374970/united-kingdom-uk-gas-price-forecast/

 

[brightspark]

I thought Fracking was banned in the UK?

I think a few places were granted licencing I may be wrong they were certainly doing exploratory sites because people were kicking off

 

[TechnicAl]

https://www.theguardian.com/environ...banned-in-uk-as-government-makes-major-u-turn

 

[fizzy]

I thought Fracking was banned in the UK?

It is - we are importing LNG into the UK - terminals like Pembroke Dock.

 

[fizzy]

but much of the cost of electricity is the price of gas used to make it?

Nope it is the cost of subsidising wind and solar power!

 

[fizzy]

Looking forward to a big drop in our gas bill then,.....yeah that's going to happen.

Gas is still far far cheaper the electric. And the high costs are to try to keep the electric costs down a bit.

 

[ukracer]

Gas is still far far cheaper the electric. And the high costs are to try to keep the electric costs down a bit.

So if that logic works why not put the price of Bread up so the Price of butter falls?

 

[earthman]

Gas is still far far cheaper the electric. And the high costs are to try to keep the electric costs down a bit.

That maybe the case but how can these private gas suppliers take a drop in profits, think of the poor shareholders.

 

[ukracer]

Wholesale that is.
Due to the big increases in fracking in places where the Nimbys aren't in charge the gas prices are dropping like a stone. Gas is now around 0.9p per kw/h.
New homes will be forced to be all electric I understand. Not exactly fair when you have to pay 16p per kwh to subsidise wind and solar.
This will of course also keep oil prices low.

I thought gas was priced on a National basis? If so how does the price of Gas fall locally where fracking is taking place.

 

[fizzy]

So if that logic works why not put the price of Bread up so the Price of butter falls?

???
The energy companies supply both gas and electric to consumers. Most suppliers are losing money on selling electricity to consumers.
Many of the smaller independent electricity companies that promised to slash people's bills have found that out to their cost and gone bust.

 

[fizzy]

I thought gas was priced on a National basis? If so how does the price of Gas fall locally where fracking is taking place.

There is NO fracking taking place in the UK!

 

[morssdn]

He means offshore presumably, in other countries.

 

[fizzy]

He means offshore presumably, in other countries.

Yes huge in the USA and Canada which means the Saudi's don't have such a stranglehold any more.

 

[fizzy]

South Hook in Pembroke is the biggest terminal in the UK

https://en.wikipedia.org/wiki/South_Hook_LNG_terminal