Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
The Hottest Sports Stock Of 2020 - 23rd Sep 19
Stocks Wedge At The Edge – Front And Center - 23rd Sep 19
Stock Market Top Almost Confirmed - 23rd Sep 19
Thomas Cook COLLAPSE! 300,000 Passengers Stranded, Flights Cancelled, Planes Grounded - 23rd Sep 19
Massive Stock Market Price Reversion May Be Days or Weeks Away - 22nd Sep 19
How Russia Seized Control of the Uranium Market - 22nd Sep 19
Dow Stock Market Trend Forecast Update - 21st Sep 19
Is Stock Market Price Revaluation Event About To Happen? - 21st Sep 19
Gold Leads, Will the Rest Follow? - 21st Sep 19
Are Cowboys Really Dreaming of... Electric Trucks? - 21st Sep 19
Gold among Negative-Yielding Bonds - 20th Sep 19
Panicky Fed Flooding Overnight Markets with Cash - 20th Sep 19
Uber Stock Price Will Crash on November 6 - 20th Sep 19
Semiconductor Stocks Sector Market & Economic Leader - 20th Sep 19
Learning Artificial Intelligence - What is a Neural Network? - 20th Sep 19
Precious Metals Setting Up Another Momentum Base/Bottom - 20th Sep 19
Small Marketing Budget? No Problem! - 20th Sep 19
The Many Forex Trading Opportunities the Fed Day Has Dealt Us - 19th Sep 19
Fed Cuts Interest Rates and Gold Drops. Again - 19th Sep 19
Silver Still Cheap Relative to Gold, Trend Forecast Update Video - 19th Sep 19
Baby Boomers Are the Worst Investors in the World - 19th Sep 19
Your $1,229 FREE Tticket to Elliott Market Analysis & Trading Set-ups - 19th Sep 19
Is The Stock Market Other Shoe About To Drop With Fed News? - 19th Sep 19
Bitcoin Price 2019 Trend Current State - 18th Sep 19
No More Realtors… These Start-ups Will Buy Your House in Less than 20 Days - 18th Sep 19
Gold Bugs And Manipulation Theorists Unite – Another “Manipulation” Indictment - 18th Sep 19
Central Bankers' Desperate Grab for Power - 18th Sep 19
Oil Shock! Will War Drums, Inflation Fears Ignite Gold and Silver Markets? - 18th Sep 19
Importance Of Internal Rate Of Return For A Business - 18th Sep 19
Gold Bull Market Ultimate Upside Target - 17th Sep 19
Gold Spikes on the Saudi Oil Attacks: Can It Last? - 17th Sep 19
Stock Market VIX To Begin A New Uptrend and What it Means - 17th Sep 19
Philippines, China and US: Joint Exploration Vs Rearmament and Nuclear Weapons - 17th Sep 19
What Are The Real Upside Targets For Crude Oil Price Post Drone Attack? - 17th Sep 19
Curse of Technology Weapons - 17th Sep 19
Media Hypes Recession Whilst Trump Proposes a Tax on Savings - 17th Sep 19
Understanding Ways To Stretch Your Investments Further - 17th Sep 19
Trading Natural Gas As The Season Changes - 16th Sep 19
Cameco Crash, Uranium Sector Won’t Catch a break - 16th Sep 19
These Indicators Point to an Early 2020 Economic Downturn - 16th Sep 19
Gold When Global Insanity Prevails - 16th Sep 19
Stock Market Looking Toppy - 16th Sep 19
Is the Stocks Bull Market Nearing an End? - 16th Sep 19
US Stock Market Indexes Continue to Rally Within A Defined Range - 16th Sep 19
What If Gold Is NOT In A New Bull Market? - 16th Sep 19
A History Lesson For Pundits Who Don’t Believe Stocks Are Overvalued - 16th Sep 19
The Disconnect Between Millennials and Real Estate - 16th Sep 19
Tech Giants Will Crash in the Next Stock Market Downturn - 15th Sep 19
Will Draghi’s Swan Song Revive the Eurozone? And Gold? - 15th Sep 19
The Race to Depreciate Fiat Currencies Is Accelerating - 15th Sep 19
Can Crypto casino beat Hybrid casino - 15th Sep 19
British Pound GBP vs Brexit Chaos Timeline - 14th Sep 19
Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - 14th Sep 19
War Gaming the US-China Trade War - 14th Sep 19
Buying a Budgie, Parakeet for the First Time from a Pet Shop - Jollyes UK - 14th Sep 19
Crude Oil Price Setting Up For A Downside Price Rotation - 13th Sep 19
A “Looming” Recession Is a Gold Golden Opportunity - 13th Sep 19
Is 2019 Similar to 2007? What Does It Mean For Gold? - 13th Sep 19
How Did the Philippines Establish Itself as a World Leader in Call Centre Outsourcing? - 13th Sep 19
UK General Election Forecast 2019 - Betting Market Odds - 13th Sep 19
Energy Sector Reaches Key Low Point – Start Looking For The Next Move - 13th Sep 19
Weakening Shale Productivity "VERY Bullish" For Oil Prices - 13th Sep 19
Stock Market Dow to 38,000 by 2022 - 13th Sep 19 - readtheticker
Gold under NIRP? | Negative Interest Rates vs Bullion - 12th Sep 19
Land Rover Discovery Sport Brake Pads and Discs's Replace, Dealer Check and Cost - 12th Sep 19
Stock Market Crash Black Swan Event Set Up Sept 12th? - 12th Sep 19
Increased Pension Liabilities During the Coming Stock Market Crash - 12th Sep 19
Gold at Support: the Upcoming Move - 12th Sep 19
Precious Metals, US Dollar, Stocks – How It All Relates – Part II - 12th Sep 19

Market Oracle FREE Newsletter

How to Invest in the Esports Revolution

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