June 6th, 2014

Breaking: Ed Advised Voters to Freeze High Prices
UK Gas Prices Hit Multi-Year Lows on Oversupply

lab-energy

This just in from Reuters newswire will have political repercussions:

LONDON, June 4 (Reuters) – British spot and forward prices for wholesale natural gas fell to multi-year lows on Wednesday as oversupply combined with weak spring demand.

British gas for delivery next winter traded at 59.40 pence per therm in the afternoon, its lowest level since at least the third quarter of 2011, while day-ahead spot gas prices dropped close to four-year lows at 41.50 pence per therm.

“The gas market is completely oversupplied. There’s a lot of gas in storage, a lot of gas in pipelines, a lot of LNG tankers have been coming in and demand is very low because of mild weather, so that’s putting a lot of downward pressure on the market,” one gas trader said.

Why is the UK gas market over-supplied? Because the price was high. Now it will fall. Price signals in a free market balance supply and demand. That is how free markets work…

If however you listened to Ed Miliband, who absorbed Marxist theory literally at his father’s feet, with a belief in a state-directed command economy with prices and rents controlled, you believe in bucking the market. If you followed Ed’s advice last year and froze your gas bill until 2017 you are likely to now be locked into a gas price that will be higher than it will probably be in 2017. Miliband thought he was clever with that price freeze gimmick. Not looking so clever now…


142 Comments

  1. 1
    Anonymous says:

    The only people who correctly predict oil or gas prices are those that don’t predict them at all.

    Like

  2. 2
    RED ED - SON OF BROWN says:

    Woooooooooooooooooppppppth

    Like

  3. 3
  4. 4
    Ed Balls - Shallow Chancer says:

    In a command economy we will just invent prices.

    Like

  5. 5
    Silent Majority says:

    Ed Miliband is a plonker and a laugh a minute.

    But never feel sorry for him. His ideology and dogma represent a serious threat to the British way of life.

    Like

    • 132
      Anonymous says:

      Not so quick with the well-worn insults. For Eds latest policy might turn out to represent a degree of threat to the British upper-class elites and their comfortable way of life. So continuing public support is needed for reductions in benefits for the unemployed and disabled – to help pay for the 45% top tax rate. Not that many here would admit it, but the Masters of the Universe really do fear that any popular left-turn would represent a defeat for their ideology and dogma.

      Like

      • 137
        Anonymous says:

        Is this the British Way of Life where you need a lawyer to negotiate tarriffs for Gas and Electricity and a barrister to switch suppliers?

        The theory of supply and demand and the Adam Smith theory of prices correcting themselves in response to that when competition turned into a monopoly and then
        operates a price cartel ( unspoken between them of course ) will not lead to a fall in prices.

        Competition leads to monopolies. Big fish swallow smaller fish and so on. Pfizer
        will swallow Astra Zeneca if the price is right. That is called buying up market share. In other words buying up your competiton. You then have less competion not more and you can raise your prices not lower them.

        The Energy Industry is no different from any other business.

        Isn’t Globalisation wonderful?

        In fact when your next in your Gas Showroom ( surely a blast from the past there? ) see if you can pay for your gas on a daily basis? I bet you can’t

        Like

        • 138
          JH32624524523432 says:

          If competition leads to monopolies we would all be ruled over by some OCP style super-corp by now.

          Remember Nokia? They made all the phones we wanted, 10 years ago. Snake was brilliant. Then another company came along, and completely rendered their entire product line obsolete. That cool skinny guy did cool presentations and we all wanted one.

          However, now a new completely open phone system is more dominant, and allowing multiple companies to make hardware for it means the phones are now better and more innovative than the innovative phone we all wanted waaaay, waaaaay back in 2008.

          Yeah, 2008. Not that long ago, but it seems like an eternity in terms of mobile phone capability.

          That’s what competition does. If makes companies jump through hoops of fire to impress us enough to part with our cash.

          Now, tell me – what would a State-controlled mobile work like? You’d probably install firmware updates from a 5 1/4 inch floppy disk.

          Twat. Stick your nebulous watermelon globalisation bullshit up your arse. Miliband goes on about the cost of living cwisis and fixed prices and gouging when he PERSONALLY as energy secretary padded out our bills with green bullshit.

          Like

  6. 6
    Tim Yeo-Yo says:

    There is no such thing as a clever Marxist.

    retardEd Millitwat strikes again!

    Like

  7. 7
    Bill Quango MP says:

    This is the BBC Home service .. and here is the news

    *** Nigel is in the snug….**
    ***Nigel is in the snug….

    *** Dan has a blue jacket**
    * Dan has a blue jacket **

    ** Don’t put the kettle on Angela, the wait won’t be long..***
    ** Don’t put the kettle on Angela, the wait won’t be long..***

    “All over Europe this morning the resistance forces rose up to help aid the allied forces of UKIP as they stormed the beaches of occupied Europe. The long awaited day of liberation has finally dawned.

    Everywhere reports are of EU bureaucrats falling back in disarray under the powerful might of anti-European protests.

    From the Island of Greece to the shores of Normandy the EU is in full retreat..

    Further messages follow for our brave resistance friends in occupied Europe

    *** Uncle Redwood needs a new hat.***
    *** Uncle Redwood needs a new hat.*** .
    .***Francoise is in a muddle ***….

    Like

    • 14
      Chris Bryant says:

      Bum bum bum….bum

      Like

    • 21
      ThisPlaceIsJustAnotherMurdochMouthPiece says:

      You’re clearly mental and have an insanely overblown sense of UKIP’s importance in the world

      About the only thing you’re massed ‘forces’ are going to achieve is ushering in a LabLib coalition and all the EU strengthening bullshit that will accompany it.

      Like

      • 56
        Daves advice to Tory Boy says:

        Chillax

        Like

        • 120
          Power to the peepol says:

          I think @21 is more likely to be some sort of anarcho-commy-1970s throwback.

          Like

      • 68
        Observant says:

        Kippers are still insane eh CCHQ?
        You lot would sell your Grandad’s ring piece for a 22.1% increase in votes.

        By the way it’s “your massed forces” not you’re

        Like

        • 79
          ThisPlaceIsJustAnotherMurdochMouthPiece says:

          Not all Kippers, just the weirdo who wrote that very odd breathless UKIP forces in occupied Europe blah blah blah post

          You can carry on getting overexcited at your 22.1% increase in a seat where the incumbent was caught on the fiddle at the end of a tough parliament with treacherous coalition partners. You must be ecstatic at splitting the vote of the right.

          Just don’t fool yourself that you’re achieving anything other than handing the keys to EU loving

          Like

          • Observant says:

            Since virtually all the alternatives to UKIP are way to the left of centre how have they have “split the vote of the right”.

            Like

          • Power to the peepol says:

            And since all parties other than UKIP want to stay in the EU, including One-Term Dave “Under no circumstances will I withdraw the UK from the EU”, the other point was just as risible.

            Like

    • 83
      Montgomery says:

      You’re insane.

      Like

  8. 8
    Mr R Sole says:

    Labour always make people poorer*

    * unless you’re a fat cat public sector manager or a benefits sponger

    Like

    • 9
      Slyman Huge, Senior Cockroach says:

      As long as the rich get poorer in the process, that’s perfectly acceptable.

      Like

      • 122
        Power to the peepol says:

        Or a Union leader on £150k+ and living in a karnsil ars for next to nothing.

        Like

        • 135
          Anonymous says:

          And yet, as well as defending banker bonuses, noticed that Dave refused to do anything about his mates in the City making a quick-buck on their Post Office shares.

          Like

        • 139
          BOB CROWS GOSTE says:

          I FAKIN LUVED THAT HARSE AND THEN I DIEDED.

          ITS NOT FARE I MISS CHAMNPAGGNEY

          Like

    • 28
      Socialists are full of shit says:

      That is what Blairism is all about a socialist can be stinking rich without being knocked off their Ivory Tower because they are well versed in Newspeak.
      Talking newspeak (as Blair himself proves everyday) let’s you get away with murder..literally.

      Like

  9. 10
    Thick as a Plank says:

    You are making a huge assumption that consumer’s charges will go down as a result of wholesale gas price reductions.

    Like

    • 12
      Ed Balls - Shallow Chancer says:

      See 4 above.

      Vote for two Eds in 2015.

      Like

    • 26
      Just Asking. says:

      Interesting that the USA now has the largest oil in storage ever; yet some pundits are saying the price of oil will go UP above the current $103 per barrel – all based on graph history. Hmmmmmmm.

      Like

  10. 11
    berk says:

    Ed spends most his time talking the economy down then wonders why people aren’t convinced that immigration is good for the economy.

    Like

    • 76
      Dangerous Brian says:

      And some stupid Labour bint on the QT said we need to stay in Europe to create jobs and strengthen the economy.
      Tell that to the Spaniards, Greeks and Italians, you thick vacuous party line following simple minded apologist for Blairism and all its many and foul consequences .

      Like

  11. 17
    Pub Landlord says:

    Yes Millipede would’ve been there with Lenin, Trots and co. in 1917!

    Like

    • 31
      Trotsky and Stalin's Ghost says:

      NO HE WOULD NOT.
      He does not have the intellectual rigour and stamina as well as courage that was needed in 1917.

      Like

  12. 18
    Red_Ed_Oil says:

    Control of Utility prices by a non-oil-exporting state is just another form of “Kirchnerism”.
    It tends to put the State in charge of everything, with the effect of messing up the economy, making exchange controls the only way out.
    This form of Socialism would not necessarily rule out pacts with communist and other totalitarian oil & gas supplier states – however.
    Has this been factored in?

    Like

  13. 20
    Winston says:

    QT last night. Question from the audience, asking if the EU should be instructing our Govt on tax and economic policy. With the help of all the left-wing activists In the audience, it was turned into a rant about far-right extremists, with the inference that opposing the EU and supporting UKIP was far-right. One idiot in the audience compared it to the “anti-Semite massacre” In Brussels, last week, to a round of applause and agreement from the panel, despite the fact the murders were committed by an Islamic, immigrant extremist.

    Like

    • 37
      Dumbleby of the BBC - SHAMpagne Socialist. says:

      This sort of QT dialogue is what I do best and have done for over 15 years.
      MY contract and pension is secure, even if I am keeping better men out of work.

      Like

    • 81
      Dangerous Brian says:

      The guy that asked the question and then made the comparison was 100% a plant.
      If they all think we are that stupid then they must be really, really thick.

      Like

    • 124
      Power to the peepol says:

      I no longer watch QT or Newsnight, they no longer even bother to pretend to be impartial.

      Like

    • 130
      inside out says:

      Don’t let the facts get in the way of a good rant.The massacre was carried out by jihadist just back from Syria.One reason the Old Bill are lifting muslims at Heathrow and other airports to try and stop this sort of action here in UK.

      Like

      • 134
        Does not compute says:

        But Cameron and Hague supplied British ‘expertise’ to these Jihadists….

        Like

  14. 22
    tallrite says:

    The fracking revolution in the US is the reason US gas prices there dropped by 75%, which of course has impacted international gas prices including UK. For the same reason, petrol prices stopped rising a couple of years ago.

    Thanks to fracking, and the enormous global volumes waiting to be liberated by it, energy prices will never rise again in our lifetimes.

    Like

    • 42
      Gas Guzzler says:

      Whoops. The only way this could be true is if licenses are given to build $billions of infrastructure and seaport facilities to export this gas.
      Obama has been stalling for years on this and currently I believe only 2 licenses given and some 5 are still in the long tailback.
      Never has America chosen a President so determined to destroy their country.

      Like

      • 105
        El Sid says:

        US export potential is vastly overstated, because the price differentials just aren’t great enough for it to make a great volume economic. Take that UK winter price mentioned by Guido – it equates to about $10/MMBtu. Current US winter price is $4.80, add on $6 for liquefaction and transport and you come to $10.80/MMBtu. IT doesn’t work – the problem is economics rather than Obama.

        Current industry forecasts are that only around 50-70mtpa will get built out of the >250mtpa LNG capacity currently in the planning process.

        Like

        • 112
          Keep the coal fires burning says:

          As the US is using more gas, it frees up its coal for export. I see trainloads going past my house on the S&C every day from Hunterston terminal on their way to the big coal-fired power stations in Yorkshire.

          Like

      • 106
        NE Frontiersman says:

        He’d be wise to hang on to the stuff; all world foreign policy has been contaminated for decades by the need to keep loathsome regimes sweet because energy supplies depended on them.

        Like

    • 45
      Sue Denim says:

      What was it Benn said about nuclear power and electricity prices?

      However, I do agree we should get fracking.

      Like

    • 63
      NorthMidlander says:

      Total S-H-I-T-E

      Like

      • 75
        Observant says:

        The green energy scams will continue to cause prices to rise if if Ed Militit’s climate change act (subsidy farmers charter) is not repealed.

        Like

    • 99
      El Sid says:

      Impact of fraccing on prices has been vastly overstated; Henry Hub didn’t go to $2.50 two years ago because of fraccing, a warm winter was responsible. Since then we’ve had a whole lot more fraccing, the price is up to $4.70, but people aren’t claiming that correlation implies fraccing is responsible for the price nearly doubling. Same with the UK at the moment – we had a mild winter, so less gas was used and the price goes down.

      Like

      • 116
        tallrite says:

        Just watch and wait. Super-high energy prices are over. Gone. And fraccing is responsible. It will be what rescues the global economy.

        Like

  15. 23
    Two cheese rolls and a pot of Earl Grey please luv says:

    Ed was in the canten this morning demanding to know who the ****g idiot was that introduced all these expensive energy taxes.

    Can anyone help him please?

    Like

    • 33
      Gordon the Great? says:

      It was nothing but the right thing to do! In my role of successor to J.C everything I did and do now is purely for the benefit of Mankind!!!

      Like

  16. 24
    Weird Ed says:

    Shut the f**k up and give us a bacon butty!

    Like

  17. 25
    Ed's inflation Crisis! says:

    Is that why a friend of mine recently showed me a letter from Ed Milishit renewing my friend’s Labour Party membership, and announcing a 2 percent increase in their membership fees!

    Ed’s certainly tough when it comes to the increasing cost of living!

    Like

  18. 27
    Confused says:

    Remind me why we need to urgently frack up our countryside again?

    Like

    • 73
      Norman Normal says:

      Once the pipes are in the ground there will be less impact than the average pylon or telegraph pole.
      Please don’t believe the nonsense you see on YouTube. Those people lighting the gas in tap water all get their supply from garden wells dug through coal seams. They have had methane in the water for decades.
      It’s amazing how often the greens lie about this issue.

      Like

    • 74
      The witless mong in Number 10 says:

      So my super rich chummies in the fracking community can become even richer! Super!

      Of course, it will leave the countryside covered in chemicals, but that won’t matter once my super rich chummies in the construction community have covered the countryside in houses for the immigrant communities I’m allowing to flood into Britain.

      Pip pip!

      Like

      • 82
        Observant says:

        Err – dodgy green Dave’s father in law earns huge amounts from his wind farm, Dave has been trying to put the brakes on fracking for a long time. Who apart from a witless socialist would object to having his own energy costs reduced because somebody else might get rich? Not to mention the possibilities of reducing national debt.

        Like

      • 88
        Norman Normal says:

        Ecoloon alert

        Like

  19. 29
    Wah wah pedal says:

    OT
    Just caught a few minutes of the BBC coverage of the anniversary of D-Day.
    Some of the stories recounted made me well up with tales of bravery and sacrifice.
    Then Eddie Izzard showed up as a special guest, do you see why I fucking despise the BBC?

    Like

    • 34
      Eddie Izzard says:

      “I think..that…erm..well…D-Day was a battle to save the letter D from the mice that live behind the sofa and work on complex time travel formula to bring cheese …FROM THE MOON !!! ”

      VOTE EU!

      Like

    • 46
      BBC Producer says:

      The BBC have a duty to give the young people a voice on this important day
      so we got a middle age bloke to do it.

      Like

    • 48
      Down with the TV Tax says:

      Despising the BBC is quite normal now.
      Their left hand does not know what their other left hand is doing.

      Like

  20. 30
    nell says:

    +++Laugh+++ I think militwit is priceless!

    Like

  21. 32
    Well Done Kippers says:

    Roger Helmer, the former Tory Euro-MP who stood for Ukip, came a strong second with 10,028 votes and 26 per cent of the vote. The party had come a distant fourth in Newark in the 2010 general election with less than four per cent support.

    http://www.independent.co.uk/news/uk/politics/newark-byelection-conservatives-win-comfortably-as-ukip-climbs-to-second-place-9497681.html

    Like

  22. 35
    Will says:

    During the winter a lot of the old gas towers were not even half full. Usually gas companies buy inthe spot market in the summer or fill these towers up or hedge the price for winter delivery with the price so low it makes sense to buy now and store it to take advantage of the higher cost of buying in winter.

    Like

  23. 36
    Idon'tneednodoctor says:

    Miliband has never told us what we should be paying for gas and electric. Miliband said it was too high but that is all. Miliband has no business sense whatsoever.
    Miliband is a fool that is controlled by his union paymasters.

    Like

  24. 39
    ThisPlaceIsJustAnotherMurdochMouthPiece says:

    If you think the Energy companies had any intention what so ever of passing any of these lower prices onto the consumer you’re even more deluded than Millipede.

    Like

  25. 41
    Represent the Labour party? This is about remembering not grandstanding says:

    Like

  26. 44
    Ziggy says:

    Everything will be alright if you eat cheese.

    Like

  27. 54
    Leaves on da line... says:

    The railways for one need re-nationalizing. The systems a complete and utter fcuk up.

    Like

    • 64
      Trains made sense 120 years ago, but the concept's shite now. says:

      For “re-nationalising” read “digging up and replacing with roads”.

      Like

      • 136
        Anonymous says:

        While the Car is King policy might have made sense 20 years ago – today it starting to look more like the Road to Hell.

        Like

    • 92
      Fishy says:

      The part of the railway that’s mainly responsible for fucking up the system is Network Rail…that’s the nationalised bit.

      The ‘part of the railway’ responsible for annual fares increases is the Government (from 2003 the Labour Government decided what the regulated fares should be and introduced an above inflation escalator)…that the Government bit

      The part of the railway that fucked up the franchise awards was the Department for Transport…that’s the public sector bit.

      The part of the railway that tells train operators what trains they are allowed to run and not run is the Office for Rail Regulation…that’s the other public sector bit.

      Nationalisation? No. The railways need to be privatised

      Like

      • 98
        Gerbil 7 says:

        Exactly. The only thing that benefits from nationalisation are the employees, everybody else gets rolled over to pay for it.

        Like

  28. 59
    David Cameron says:

    We plan to allow people to use bumsex to pay their bills.

    Like

  29. 60
    Owen Jones says:

    Bet Nigel Farage going ‘na, na, na, na, na’ at everyone now. :o)

    Like

  30. 71
    Anonymous says:

    being pricing manager at a big six supplier i sympathise with the article however, ed is freezing retail not wholesale prices. demand elasticity at the residential retail end is quite inelastic so even if prices fell to 0 people wouldn’t use too much more gas

    Like

  31. 72
    Col Ripper of Braintree says:

    stick a pipe in eric pickles asehole, you could heat a house for a year then eat him at christmas

    Like

  32. 80
    Green and Pleasant says:

    There isn’t a country in the world that has developed an efficient outage-free energy supply system without major state intervention.

    Like

  33. 91

    Just like his predecessor Big Gord. Economy flying along, so what’d he do sell our gold reserves whe the price was on the floor.
    They are a breed apart

    Like

  34. 94
    Champagne Socialist. says:

    Forget fuel, its House Prices which need to be frozen.

    Like

  35. 95
    Anonymous says:

    Will the gas bastards bring the price down? Answer I guess is no.

    Like

    • 102
      Anonymous says:

      Exactly. The notion that any savings might be passed on to the consumer is laughable.

      Like

    • 129
      Ze Frenchy energy companies says:

      Even if we, ow you say, cood bring down ze energy prizes, we don’t like to just becoz it annoyz ze Inglish!

      Like

  36. 96
    Col Ripper of Braintree says:

    Poor Nigel cant ever have a blue badge on his car, people winth that he has either joined the consevatve party or is shagging cripples again

    Like

  37. 101
    Private Parts says:

    Just because wholesale prices fall it does not automatically follow that the consumer will be paying less. Not that Miliband’s ideas are any good but the writer of this blog seems to assume that the big energy companies are not greedy so and so-s whereas all our experience tells us that they are.

    Like

  38. 103
    Mycroft says:

    I have to tell some here that it is not ALL supply and demand that dictates prices, much as we would like to hope that was the case, within that there will be ‘broker adjustment’ and this at the moment is minimal, the S&D tenet is as it’s it’s strongest in our Hemisphere’s Summer and at it’s weakest in our Winter.

    Today around 30% of the price will be made up of broker adjustment, so you can take a fifth off if the market couldn’t broker-out.

    In the winter this broker-out will be close to 10%.

    If the idiot Labour leader had an ounce of intelligence in financial matters, he could have said rather than trying to freeze the price he would restrict the extent of brokering out.

    We in this hemisphere are very fortunate, the southern hemisphere is less demanding of fuel in their winter and we even today in the north will take more on a good summers day more fuel than the south on their worst winter day.

    If S&D was in full control of the market the price would actually reflect this more fully.

    S&D is much touted as a great thing, it is, but what has happened over time is the subtle corruption of the principle by major forces and players, the market should make much less ‘profit’ in the summer than the winter… the fact that it doesn’t is a clear indication of the extent to which it has been corrupted.

    Some ‘adjustment’ is required to ensure stable employment and business continuity, but the extent to which it is used today is excessive to say the least.

    Liked by 1 person

  39. 104
    Graham says:

    You have to realise that Miliprick , Balls , Cooper , Burham and the rest of his cohorts are a bunch of clueless and useless ooverpaid c*nts , none of whom have ever had a real job in the real world and live in cloud cuckoo land. Heaven help us if these f*cking idiots ever get into power.

    Like

  40. 113
    Anonymous says:

    Oh fudge off Guido. I do agree with all your other points, but you’re deluded to believe that prices will still be lower in 2017 than last year.

    Like

  41. 131
    Aparat says:

    If the price stays low and the Tories, for the first time in 20 years, use this to defend the free market, then UKIP will be fucked on another point.

    I vote UKIP, so I don’t says this wish relish. You can’t rely on the Tories’ lack of conviction lasting up to the General Election, even if their new-found right-wing principles are just cosmetic. The Tories may be a lost cause, but they could convince conservative voters, if they tried.

    UKIP need a wealth of policies and those with the gift of the gab to explain them and justify them; to every section of society, too. When are the intelligent and articulate UKIPers going to come out of the closet or cross the floor?

    UKIP have the ability to fight the General Election campaign Cameron botched, so I pray they don’t blow it.

    Like

  42. 140
    Anonymous says:

    “how free markets work…”
    Well it certainly doesn’t include paying banks to dispense loans. In a free market reality, the way would be made clear for competition from banks set up for and on behalf of the people. So that QE supported casino institutions could be allowed to fail naturally.

    Like


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