THINKING about the energy crisis into which we are all being plunged is pretty depressing. But it gets worse if you have any sort of background in the industry as I have.
The point is that nothing is unaffected by the massive and frankly inexcusable rise in energy prices. And that means the entire economy of Britain – and every other country – is about to be trashed. With that will go all of us.
Of course, and as is being noted, the rich will just get richer and the medium rich will just get away with it. As usual. But of course they may not if the ordinary people do finally lose patience with the capitalist monsters responsible for our crisis.
And they are. You see not everyone is actually being afflicted by the massive rise in the price of energy – some are actually charging those prices for a product for which base costs have not changed. That's right – the cost of some sources of energy has not risen but the price it can sold for has soared stratospherically. And that notional situation is what the dumbo at Ofgem is watching.
And in that disgraceful gap lies profit – vast, unjustified profit. And dividends. And bonuses. And share options. And ever more utterly corrupt riches stolen at our expense.
Let us start with the euphemistically entitled Energy Price Cap wielded by the Ofgem regulator, better known as the energy business protector. He has two jobs – one is to protect us, the customers from huge price rises. The other is to ensure the lights stay on by keeping the energy business going. Which do you think the regulator is doing best right now? Yep, I agree. Customers are being sent to the wall.
But that's not to protect the energy firms – its to ensure that most of them make huge windfall profits. Because that is what is happening.
The price of your kilowatt of energy is set by the firm selling it you. But it is not actually linked to much that is real. It is based on the notional energy prices set by the 'coupling' of all sources into one basket price. Which currently is huge. But not for all.
Your kilowatt coming from reusable sources like wind and solar is NOT costing a penny more in real terms. It is just priced as if it were. And all the oil and gas we still take from the North Sea is not costing more – it is just priced higher.
And here is the appalling truth – the owners of the wind and solar farms are coining it in. And the owners of the North Sea rigs that are (still!) exporting their product are making vast profits they never expected. And our Government is thus creaming off vast sums from increased energy taxes.
Yep, it's all part of a huge con.
UK energy price rises are massively greater than the rest of Europe. Why? Well the EU decoupled from this pernicious system a while back and while their prices are rising they are variable across type and source of energy supply. Ours are all at the coupled international notional prices of the more expensive kilowatt thanks to Russia mainly.
But hang on you might say. I read that energy demand is falling due to the international economic slow down caused, in part, by the saw damn war.Yes, that's right, it is. So should not prices be easing back? Of course but nobody makes a huge profit on falling prices (except hedge funds but don't get me onto that!).
So prices stay high to feed the offshore chests of the filthy rich. And you? Go freeze; go starve; there are too many of you anyway.
The bill of fare:
That 'cap' will deliver £84 billion into the enrgy firms from your bills as domestic customers next year.
The lack of a 'cap' on commerce and industry will mean even higher prices and deliver between two and three times more – possibly £300 billion.
In your home the following will cost more (a lot more): heating, washing, cooking, washing crocks and cutlery, TV and sound entertainment, communications and computing, even reading after dark...
Your water and sewage charges will rise since they too use energy;
So too will you council tax for the same reason;
Your soccer match or whatever will cost more and night games will be prohibitively expensive due to the light;
It will cost you more to buy anything because every shop, every restaurant, every pub will be facing a huge increase in energy bills;
Food will cost more because everything your farmers uses relies on, yep energy;
Beer will cost more because... you got it;
It will cost you more to travel because every transport service will be facing a massive increase in costs;
Fuel prices for your car etc will soar; recharging you electric car will become impossibly expensive;
Holidays will probably be a thing of the past for remarkably similar reasons;
Your mortgage will rise rapidly as people find they cannot afford their homes and lose them as well as inflationary pressure on interest rates;
Clothes will cost more as above. So will food;
Shops and services will give up the struggle and close, leaving you with less choice and rising prices;
Your employers will probably have to cut staff to stay in business so you may lose your job;
And hospitals, doctors, schools – everything will be facing massive increases in energy costs with possible closure.
But there is a hope of a sort. Quite soon, as huge numbers of people, and businesses and public bodies are forced to close or not pay their bills the energy industry will see its customer base and demand for its product crumble.
With any luck, just before we see the end game, someone will put a stop to the entire ridiculous farrago! Keep you fingers crossed; that's all you've got!
