Archive for the ‘Energy’ Category
The Cost Of Another Cold Winter – Gas And Electricity Prices Rocket
Tuesday, January 25th, 2011
Energy prices have risen at extraordinary rates in recent years. With dwindling supplies coupled with increased global demands this is a trend that is likely to continue.
Back in the 1970′s it was generally believed that fossil fuels would be exhausted by the year 2000. Whilst this was an overly pessimistic outlook, the reality remains that fossil fuel stocks are declining fast. Price hikes in utilities are the natural consequence of this situation, and the significant rises in recent years have affected both gas and electricity prices as well as automotive fuels.
We don’t have to look too far to see that the results of this situation are having a deep and lasting impact. The direct consequences are most obvious for us as individuals: each quarter, when we receive our utility bills, we end up paying more than we did at the same time the previous year, and every visit to the petrol station seems to be marginally more expensive. With petrol prices exceeding £1.30 in certain areas and diesel prices nudging even further ahead, everybody is feeling the pinch.
But it’s the indirect costs that are also making us feel the squeeze. Business energy prices have inevitably increased as well, which has escalated the costs of producing goods, whilst also making distribution costs rise. And service industries have not escaped the burden. Operational costs have soared in line with manufacturing costs. Offices need to be heated and lit!
It has recently been confirmed that the UK has just shivered its way through the chilliest December for 120 years, which means that commercial and domestic fuel users are likely to flinch when next quarters bill arrives. The National Grid has made public that gas volumes in reserve are dramatically reduced in consequence to the consumption levels in December. This fact alone suggests that it would be wise probably to brace ourselves for the biggest that we’ve ever witnessed.
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