The rising cost of gas

[antomac1001]

Hi - I hope this is not a flippant question. Here in Belfast we have had two rises in energy prices; 30% on natural gas and 25% on electricity so we are all becoming more frugal and we are praying for milder winters

I notice that on my gas bill there are KW/h mentioned, which I thought only related to electricity usage. Does gas use much electricity in terms of regulating and pumping and indeed 'keepin 'er lit'?

I am considering moving to electricty storage heaters (Economy7 and the like) - what do you think?

 

[JohnD]

1) the energy power of gas is converted, for easy measurement and pricing, into kWh equivalents. This is just a unit of measure.

2) I don't know what tariffs are like over there, but generally gas heating is cheaper than electricity.

3) If you have babies or are retired, and so need a house that is warm all day, electric storage heating is worth considering. But if you are out all day, you are wasting your money keeping the house warm while it is empty, and by evening the storage will be running out.

4) You can save a lot of money with good insulation and draughtproofing, which are DIY jobs and not very expensive. if you have a hot-water cylinder, make sure it has a thick jacket. Hot pipes should be lagged with foam. Ceiling/lofts should have at least 150mm (six inches) of insulation, and the latest standard is 250mm (ten inches). Grants and subsidies are available for insulation if you are not fit to install it yoursef - you will usually find details on the web pages of your gas and electricity suppliers and your local authority. It is often a bit cheaper in summer. You will get better returns by improving insulation than by spending the same ££s on new heaters.

 

[antomac1001]

Thanks for that reply JohnD. I have some of the energy saving measures you suggest already in place. I think I will research the cost of wall insulating since as a semi-detached property, most heat is expelled through 3 external walls.

I also picked up some good tips from another site; thermal curtain liners, turning off rads in all but the room your in, using a low power reverse setting on celing fans to push warm air down from (very high) ceilings.

All common sense stuff I suppose. I will be toasty this winter methinks without being skint.

 

[wobs]

using a low power reverse setting on celing fans to push warm air down from (very high) ceilings.

We used to joke that we should get umpire chairs like you see at Wimbledon, as you'll benefit from the nearer the ceiling, and fit the TV on a high bracket on the wall. Your suggestion makes more sense.

We also joked that a double bed that was at bunk bed level would also see the same benefit. We laughed about that until we saw one in Argos, and wondered if couples actually bought them.

 

[namsag]

One of the things that the media have not picked up on is back in 95/96 Centrica was basically set up as bankrupt company . It was tied into 20 year deals with the oil companies to buy gas at 20p a therm and at the time it had dropped to approx 12p .
So they went to oil companies and said re draw the contracts or we will declare bankruptcy. Which after about a year they did to allow them to buy at market prices.
Well price of a therm is now well over 80p.
And we are all suffering . HOW clever was the guy who originally signed the 20 year contract and how stupid was the guy who got out of it with a couple of years vision. Even though he probably got a hell of a bonus from the company

 

[Deluks]

So they went to oil companies and said re draw the contracts or we will declare bankruptcy.

Maybe they were telling the truth? Won't last long if every other supplier can undercut them by 40%

 

[empip]

edit :- 80p / Therm is the 'forward' price for the 4th qtr this yr - I think

Useful gas spot prices...
http://www.apxgroup.com/index.php?id=55

Current 90 day average around £0.572 per therm.
At 1 Therm = 29.307 kWh, average price is 1.94p/ kWh.
I have read that the wholesale price is 51% of the retail... Therefore expect to pay 3.73p kWh plus 5% VAT.
AEG current price standard av. 2.7p / kWh ominously 27.6% short of 3.73p... I hope that 51% figure is wrong !

-0-

 

[namsag]

Empip i stand corrected last article i read was talking of prices over 80p.
Deluk its bit more complicated than that ,its a mixture of prices paid on tihe day /past/and future.
And at the time BG was big enough to absorb fluctuations and had always bought there gas 10, 20 years in future. And had always made them money in the long term.
It was the powers that be way of having an easy life and getting away to be an exploration company without the hassle of government regulation and piling as much debt into centrica and giving them minimal assets.

Anyway does anyone want to buy a bypass

 

[JohnD]

The 99% mark up Wholesale price:Retail price should not be fixed

Retail cost should be

Wholesale cost + Cost of distribution + Overheads + Profits

Distribution cost obviously does not change when the wholesale price varies
Overheads obviously do not change when wholesale price varies
so that leaves, er.........

 

[BOB D.O.L.E]

Hi - I hope this is not a flippant question. Here in Belfast we have had two rises in energy prices; 30% on natural gas and 25% on electricity so we are all becoming more frugal and we are praying for milder winters

I notice that on my gas bill there are KW/h mentioned, which I thought only related to electricity usage. Does gas use much electricity in terms of regulating and pumping and indeed 'keepin 'er lit'?

I am considering moving to electricty storage heaters (Economy7 and the like) - what do you think?

Did you know that leaving a pilot lit on a boiler would cost you £65 per year, also if you collected your far..ts per year you could run your boiler for a week and if you happen to have a cow in the garden and did the same you could run your boiler for a month FREEE
jUST THINK WHAT A FARMER COULD MAKE .....