[News] The Energy crisis

[TomandJerry]

Is anyone else following this?

Rocketing gas prices, CO2 shortages, energy firms going bust...



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[Springal]

I know it’s increasing everywhere but is it in line with the EU? Obviously some impact of leaving the EU internal energy market I suspect

 

[Albion my Albion]

I thought it was the lethargic nature of the Leicester fans.

 

[vegster]

Genuinely scary times ahead. Energy costs are the tip of the iceberg. There is a perfect storm of shortages of drivers and workers in key areas which is going to cause rapid inflation as businesses compete for staff or try to hold on to the ones they have.

As usual the poorest will suffer most, especially those who are losing their Universal Credit top up.

 

[Neville's Breakfast]

I know it’s increasing everywhere but is it in line with the EU? Obviously some impact of leaving the EU internal energy market I suspect

Why do people always presume this ? You are way off the mark. There is a global shortage of gas. China has been aggressively buying LNG for months. Couple this with very low storage levels in the EU, post lockdown demand increases and the politics around the new Russian pipeline (Nordstream 2) and we have an enormous price spike. Germany in particular has major problems ahead as it has difficulties satisfying its power demand with its rapid move away from coal. Interesting times.

 

[TomandJerry]

Genuinely scary times ahead. Energy costs are the tip of the iceberg. There is a perfect storm of shortages of drivers and workers in key areas which is going to cause rapid inflation as businesses compete for staff or try to hold on to the ones they have.

As usual the poorest will suffer most, especially those who are losing their Universal Credit top up.

Energy firms are demanding the price cap is removed and are asking for bail outs.

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[southstandandy]

The only advantage of global warming is that now we rarely need to put the heating in until February, and ony then for a few weeks. Thankful for small mercies.

 

[Springal]

Why do people always presume this ? You are way off the mark. There is a global shortage of gas. China has been aggressively buying LNG for months. Couple this with very low storage levels in the EU, post lockdown demand increases and the politics around the new Russian pipeline (Nordstream 2) and we have an enormous price spike. Germany in particular has major problems ahead as it has difficulties satisfying its power demand with its rapid move away from coal. Interesting times.

That’s why I asked if the same level of increase are being seen to households in the EU

 

[beorhthelm]

I know it’s increasing everywhere but is it in line with the EU? Obviously some impact of leaving the EU internal energy market I suspect

its more to do with shifting reliance to wind for power, there has been a lack of wind across Europe so gas reserves have been used up. meanwhile other countries buying up supply have driven up prices. we get most our gas imports from Norway, US and Qatar, a little from Russia via EU pipelines. pricing is international and thats the real problem, not the supply, its available but costs alot more than a year ago.

 

[Springal]

its more to do with shifting reliance to wind for power, there has been a lack of wind across Europe so gas reserves have been used up. meanwhile other countries buying up supply have driven up prices. we get most our gas imports from Norway, US and Qatar, a little from Russia via EU pipelines. the real problem is the price, not the supply, its available but costs alot more than a year ago.

But presumably the price increases are the same / similar if you lived in France, Germany, Spain etc?

 

[Yoda]

CO2 shortages is not a new thing. I remember the guy who used to run my local saying there was a shortage in either 2018 and so they were struggling to get half their stock in.

 

[beorhthelm]

But presumably the price increases are the same / similar if you lived in France, Germany, Spain etc?

yes, the problem with prices are right across Europe and beyond.

 

[AmexRuislip]

I'm sure NSC can assist with the energy crisis, seeing there's enough gas and wind blown on here, during match days.

 

[Neville's Breakfast]

That’s why I asked if the same level of increase are being seen to households in the EU

Spain (and possibly Italy) seem to be going down the route of subsidizing utility bills. They face exactly the same market dynamics as we face but are looking for short term solutions. Whatever is done with have knock on effects though. One idea has been to sell more carbon emission permits to raise cash for the subsidy. The problem with this idea is that it seems to have broken the link between carbon pricing and gas. Gas is through the roof again this morning and carbon is supposed to rise to prevent a switch to coal. Permit selling (or the prospect of it) keeps a lid on carbon which is making coal once again a viable power input. To explain a little further the carbon market was created to create a financial cost to pollution and burning coal is a major source of demand for permits. EU politicians looking for short term popularity are in danger of disrupting this mechanism and setting back the target of carbon emission reduction.
Some more background for you on the problem on the continent;

https://www.google.co.uk/amp/s/www.bbc.com/news/world-europe-58556073.amp

 

[Brovion]

I don't understand this CO2 thing. One minute they're saying there's too much of it, now apparently there's a shortage! Make your ****ing minds up.

 

[Neville's Breakfast]

CO2 shortages is not a new thing. I remember the guy who used to run my local saying there was a shortage in either 2018 and so they were struggling to get half their stock in.

At risk of being whooshed the CO2 referred to here is the carbon emissions market. There is a year on year structural shortage of permits by design as the whole purpose of the market is to disincentivize pollution. It is working but is currently under stress because of events in the global gas market.

 

[TomandJerry]

I don't understand this CO2 thing. One minute they're saying there's too much of it, now apparently there's a shortage! Make your ****ing minds up.

CO2 is used in various ways across various industries as a by product when gas is being burnt.

Nuclear power, hospitals and killing animals in a humane way are some of those uses.

Now a shortage in those sectors would be devastating

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[TomandJerry]

"John Redwood

(@johnredwood)

Price controls do not work. Energy bills will go up despite them. Taxpayers will have to help bail out companies damaged by them.

September 20, 2021"

Thanks, John. (Tory MP)

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[PILTDOWN MAN]

CO2 is used in various ways across various industries as a by product when gas is being burnt.

Nuclear power, hospitals and killing animals in a humane way are some of those uses.

Now a shortage in those sectors would be devastating

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Don't forget beer

 

[Wrong-Direction]

Hey let's bail out these multimillion pound companies because they refuse to let their profit margins drop. ****ing disgrace.

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