Gas: Excess Supply but Retail Prices Still Rise.

I picked up an interesting little snippet from Reuters today on Yahoo  see This Link

Looks like that in Europe there is a 10% oversupply of natural gas. Meanwhile the Utilities are still hiking their prices to the consumer.

At projected import, domestic production and consumption levels, the EU's gas market will have 50 billion cubic metres (bcm) more excess supply in 2011 than it did last year, and the system is likely to remain similarly long in 2012,
This compares to an EU consumption of 492.5 bcm in 2010, according to BP, and to more than France's annual gas consumption of 47 bcm, and only slightly less than Britain's 57 bcm production in 2010.
This year and next year are likely to see an import and domestic production excess above consumption of just over 60 bcm.

Every single per-centage rise in energy prices pushes another 40,000 households into fuel poverty. Most of those households will be pensioners and the poor.

So why did the utilities successfully get away with their recent price hikes?

Because they could.

Why didn't the regulator (Ofgem) veto these rises?

Because it is a self-serving, toothless bureaucracy, incapable of regulating a bag of sherbet let alone a greedy cartel.

Why didn't the Government act?

Oh Come On. Get a grip and don't be silly. The government is part of the cartel. They want prices to rise.

In any normal market an over supply means prices should fall.

So are you expecting your bill to drop as quickly as it went up?

Don't hold your breath.

And particularly don't expect Huhne or any of the other buffoons to do anything about it.

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