Best of the Week
Most Popular
1. Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - P_Radomski_CFA
2.Fed Balance Sheet QE4EVER - Stock Market Trend Forecast Analysis - Nadeem_Walayat
3.UK House Prices, Immigration, and Population Growth Mega Trend Forecast - Part1 - Nadeem_Walayat
4.Gold and Silver Precious Metals Pot Pourri - Rambus_Chartology
5.The Exponential Stocks Bull Market - Nadeem_Walayat
6.Yield Curve Inversion and the Stock Market 2019 - Nadeem_Walayat
7.America's 30 Blocks of Holes - James_Quinn
8.US Presidential Cycle and Stock Market Trend 2019 - Nadeem_Walayat
9.Dear Stocks Bull Market: Happy 10 Year Anniversary! - Troy_Bombardia
10.Britain's Demographic Time Bomb Has Gone Off! - Nadeem_Walayat
Last 7 days
Stock Market Crash Edition - 26th Mar 19
Handy Ways to Boost Your Home Income - 26th Mar 19
US Treasury Bond Yield Inversion and Political Fed Cycles - 26th Mar 19
Golan Heights Oil all about the Shekels - 26th Mar 19
Falling Yields a Catalyst for The Gold Catalyst - 26th Mar 19
Can We Lock Up Rachel Maddow Now? - 25th Mar 19
Real US National Debt Might Be $230 Trillion - 25th Mar 19
Friday's Stock Market Sell-Off - New Downtrend or Just Correction? - 25th Mar 19
20 Days Left to Find Buying Opportunities In Gold - 25th Mar 19
Will the Historic Imbalance in Gold Stocks to Gold Price Resolve ? - 25th Mar 19
EasySMX Wireless Games Controllers Review - 25th Mar 19
Stock Market Short-term Top - 25th Mar 19
UK Population Growth - Latest ONS Immigration Statistics and Consequences - 24th Mar 19
The Fed Follows Trump's Tweets, And Does The Right Thing - 24th Mar 19
Yield Curves, 2yr Yield, SPX Stocks and a Crack Up Boom? - 24th Mar 19
Risk/Reward in Silver Favors Buying Now, Not Waiting for Big Moves - 23rd Mar 19
Similarities Between Stock Market Today and Previous Bull Market Tops - 23rd Mar 19
Stock Market DOW Seasonal Trend Analysis - 23rd Mar 19
US Dollar Breakdown on Fed Was Much Worse Than It Looks - 23rd Mar 19
Gold Mid-Tier GDXJ Stocks Fundamentals - 23rd Mar 19
Which Currency Pairs Stand to Benefit from Prevailing Risk Aversion? - 23rd Mar 19
If You Get These 3 Things Right, You’ll Never Have to Worry About Money - 22nd Mar 19
March 2019 Cryptocurrency Technical Analysis - 22nd Mar 19
Turkey Tourist Fakes Market Bargains Haggling Top Tips - 22nd Mar 19
Next Recession: Finding A 48% Yield Amid The Ruins - 22nd Mar 19
Your Future Stock Returns Might Unpleasantly Surprise You - 22nd Mar 19
Fed Acknowledges “Recession Risks”. Run for the Hills! - 22nd Mar 19
Will Bridging Loans Grow in Demand and Usage in 2019? - 22nd Mar 19
Does Fed Know Something Gold Investors Do Not Know? - 21st Mar 19
Gold …Some Confirmations to Watch For - 21st Mar 19
UKIP No Longer About BrExit, Becomes BNP 2.0, Muslim Hate Party - 21st Mar 19
A Message to the Gold Bulls: Relying on the CoT Gives You A False Sense of Security - 20th Mar 19
The Secret to Funding a Green New Deal - 20th Mar 19
Vietnam, Part I: Colonialism and National Liberation - 20th Mar 19
Will the Fed Cut its Interest Rate Forecast, Pushing Gold Higher? - 20th Mar 19
Dow Jones Stock Market Topping Pattern - 20th Mar 19
Gold Stocks Outperform Gold but Not Stocks - 20th Mar 19
Here’s What You’re Not Hearing About the US - China Trade War - 20th Mar 19
US Overdosing on Debt - 19th Mar 19
Looking at the Economic Winter Season Ahead - 19th Mar 19
Will the Stock Market Crash Like 1937? - 19th Mar 19
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast March to September 2019

British Gas Freezing Pensioners Not Prices, 9.2% Price Hike, Exponential Inflation

Personal_Finance / Household Bills Oct 18, 2013 - 05:07 AM GMT

By: Nadeem_Walayat

Personal_Finance

It's that time of the year when Britain's cartel of 6 energy suppliers steps forward one by one to announce extortionate price hikes with SSE's 8.2% of a few days ago now being followed by British Gas announcing that they will hike energy prices by 9.2% (gas prices by 8.4% and electricity by 10.4%).


So whilst many frail pensioners will freeze to death this winter dozens of media representatives of British Gas have been busy reading their propaganda scripts across the mainstream media in an attempt at putting up smoke and mirrors as justification for the price hikes -

"There are costs that are not in our control, there are several of them such as the cost of buying the energy on the global market." - Christine McGourty, British Gas

"The price of wholesale gas is rising we are buying in a global market and the demand for it is booming" - Ian Peter, Managing Director of British Gas

The following graph illustrates the truth that the there has been NO RISE in the market price for gas for THREE years! In fact the wholesale price for gas is still 30% LOWER than where it was five years ago in 2008 during which time British Gas has increased gas prices by MORE than 50%! This is EXTORTION! and successive governments have done nothing about the price fixing, neither Labour before nor the Conservative Coalition since 2010, and the price for electricity shows a similar pattern to that of gas

The series of annual price hikes have lifted the average dual fuel bill to more than £1450, which are now due to go up again by another £140 for October 2013 to September 2014! Even the Office for National Statistics (ONS) has calculated that energy price hikes are an extortionate 41% OVER Inflation i.e. more than 50% over the past 5 years.

Switch Provider?

The governments answer (Ed Davey, Energy Secretary) was to suggest switching supplier to another energy cartel member. Yes switching and FIXING may delay a price hike by upto 12 months as longer switches already have built in price hikes anyway, but contrary to what the price comparison sites suggest this is not as simple as a few mouse clicks because it can take more than a month to complete process of switching with much tooing and froing as my forthcoming analysis (video) will illustrate.

The real solution is for the energy cartels to be broken up, as the ILLEGAL price fixing is currently not being prosecuted. The Serious Fraud office must investigate and bring charges against the energy providers board of directors because there is a clear case for price fixing when one compares price hikes against actual market prices.

The bottom line is that the only way retail customers can protect themselves from the price hikes is by being invested in the monopoly profit generating companies such as Centrica (owners of British Gas) and thus receive the price hikes back in the form of capital gains (9.5% over the past 12 months) and dividend income (4.75% current yield), that's a return of 14.25% against a price hike of 10%.

UK Governments Baldrick Nuclear Power Plan

The governments solution to Britain's energy crisis is to build a Chinese state controlled Fukushima style nuclear power plants in Somerset, so much for National Security!

This illustrates what my recent in-depth analysis focused upon that democracy is an illusion and that the politicians actions are always in the interests of the ruling elite - The Illusion of Freedom - Democracy, Religion, Science and Propaganda

Exponential Inflation

The following graph of official CPI inflation rate (that tends to under report real inflation by between 1-1.5% per annum) illustrates the exponential inflation mega-trend in motion that asset prices tend to be leveraged to and oscillate around and hence one of the primary mechanisms of how the elite accumulates wealth, whilst the effect on the wage slaves is to continuously lose purchasing power of net earnings that is unable to cover real inflation such as the 10% hike in energy costs, thus forcing workers to take on debt and thus become reliant on political bribes (benefits and entitlements culture) and become perpetual debt slaves who will spend virtually their whole adult lives servicing their debts, for instance over 90% of today's graduates will leave university with about £60,000 of debt that they will then be focused on servicing for the next 25 years of their lives.

My next in depth analysis will be Governments Inflating Housing Bubbles to Encourage Debt Slaves to Borrow. Ensure you remain subscribed to my always FREE newsletter to receive this analysis in your email in box during the coming week.

Source and Comments: http://www.marketoracle.co.uk/Article42732.html

Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2013 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 25 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of four ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series.that can be downloaded for Free.

The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 EbookThe Interest Rate Mega-Trend EbookThe Inflation Mega-trend Ebook

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 600 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

R.E.B
22 Oct 13, 14:00
Somerset Nuclear

Hi Nadeem, Does anybody understand what is going on with this plant? They have priced it at £16 billion, which of course will mean £30 billion. They have locked us into a price for 20 years. If it turns out too low, the company will go bankrupt and the state will have to step in, we cant just leave a nuclear plant to lie fallow, and set too high we will be overpaying. How can they guess a price 20 years from now anyhow? Very tellingly, all the private sector bidders ran for the hills when they looked closely at it. What the hell is going on? Many Thanks!


Nadeem_Walayat
22 Oct 13, 14:40
Nuclear Election Boom

Hi Reb

The politicians are only interested in doing everything they can to encourage an election boom. They don't care if it is ever completed or explodes Fukashima style 30 years from now.

Best

NW


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules