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ESB and Bord Gais defend rises yet to come!

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  • 10-11-2008 2:45pm
    #1
    mike65
    Closed Accounts Posts: 88,978 ✭✭✭✭


    from indo

    The ESB and Bord Gais have spent the morning trying to justify their requests for price increases to cover the rising international cost of fuel.

    The ESB is seeking a 5.8% increase from January, while Bord Gais wants to raise its prices by 4.2%.

    The Commission for Energy Regulation, which must approve the changes, has arranged a public forum in Dublin today to let members of the public and business groups have their say on the matter.

    Both companies insisted at the meeting that price hikes are necessary to cover their costs.

    They also vowed that any future reduction in costs would be passed on to customers via lower prices.

    I have just checked the prices relative to a year ago, oil is 30% lower (yes lower!) and natural gas is also 30 % down from $8.40 per MMBTU to $6.75.

    So how can any rise by justified?

    Mike


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    #2
    micks
    Registered Users Posts: 840 ✭✭✭micks


    mike65 wrote: »

    So how can any rise by justified?

    Mike

    Most Likely, I'm guessing because BOTH companies prob signed into longterm bulk purchases of their resources at prices that are now looking rather on the high side
    but its ok because we'll cover the cost!


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    #3
    Danno
    Registered Users Posts: 8,913 ✭✭✭Danno


    More of "sure Joe Public will pay for it" type thinking. Why not fire the fool that bought at the high price?


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    #4
    ongarite
    Registered Users Posts: 8,251 ✭✭✭ongarite


    The dollar vs euro has gained strongly since the last price increase, by around 20%.


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    #5
    craichoe
    Closed Accounts Posts: 2,706 ✭✭✭craichoe


    mike65 wrote: »
    from indo



    I have just checked the prices relative to a year ago, oil is 30% lower (yes lower!) and natural gas is also 30 % down from $8.40 per MMBTU to $6.75.

    So how can any rise by justified?

    Mike

    Because there wasn't anywhere to store the gas we weren't using during the summer and hence we have to buy it at a higher price during the winter, same problem in the UK at the moment.


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    #6
    mike65
    Closed Accounts Posts: 88,978 ✭✭✭✭mike65


    ongarite,

    Hadn't thought of that.

    Mike


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    #7
    mike65
    Closed Accounts Posts: 88,978 ✭✭✭✭mike65


    Brent December down to $56!

    Mike


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    #8
    mike65
    Closed Accounts Posts: 88,978 ✭✭✭✭mike65


    Price rises being cancelled subject to the regulators wish (why the fupp would the regulator put up prices if the supplier is not seeking same?)

    Mike


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    #9
    ejmaztec
    Registered Users Posts: 24,075 ✭✭✭✭ejmaztec


    mike65 wrote: »
    Price rises being cancelled subject to the regulators wish (why the fupp would the regulator put up prices if the supplier is not seeking same?)

    Mike

    Perhaps they'll reduce them instead. :pac:


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