TTF is the gas price. Tying our overall energy price to the wholesale gas price is something the government could have temporarily changed if they wanted to but they chose to leave the pricing formula alone and fleece the taxpayer instead to subsidise the also fleeced consumers and thereby guarantee excess profits for the energy providers, whilst everyone unfairly blamed the energy retailers, many of which went bust.Why were energy prices tied to the TTF rather than oil price which caused the eye watering price rises caused by loss of refining capacity? Two words “European Union”.
The government also upped the daily standing charge to take into account the companies that went bust, so we, the customer, footed the bill.TTF is the gas price. Tying our overall energy price to the wholesale gas price is something the government could have temporarily changed if they wanted to but they chose to leave the pricing formula alone and fleece the taxpayer instead to subsidise the also fleeced consumers and thereby guarantee excess profits for the energy providers, whilst everyone unfairly blamed the energy retailers, many of which went bust.
TTF is the gas price. Tying our overall energy price to the wholesale gas price is something the government could have temporarily changed if they wanted to but they chose to leave the pricing formula alone and fleece the taxpayer instead to subsidise the also fleeced consumers and thereby guarantee excess profits for the energy providers, whilst everyone unfairly blamed the energy retailers, many of which went bust.
I believe the government could have introduced some emergency legislation to temporarily change the basis of calculating the wholesale cost of energy. If you compare UK electricity prices with EU countries, our prices were higher than everyone else’s during the period of high costs, and not only that there was huge variation country by country, so surely if it was all the EU’s fault as you suggested, they’d all be paying similar amounts to us.If only it was so easy. Do you really thing the government could have ripped up existing energy supply contracts and renegotiated the terms to base them off oil prices after the TTF horse had well and truly bolted? No of course you don’t, you’re not that stupid.
Energy retailers went bust because they couldn’t properly hedge their obligations.
Using TTF made energy cheaper for all of us for best part of 2 decades. Like most of these things it’s a zero sum game and it catches up with you eventually.
I believe the government could have introduced some emergency legislation to temporarily change the basis of calculating the wholesale cost of energy. If you compare UK electricity prices with EU countries, our prices were higher than everyone else’s during the period of high costs, and not only that there was huge variation country by country, so surely if it was all the EU’s fault as you suggested, they’d all be paying similar amounts to us.
There’s also a reasonable chance there were force majeure clauses in the energy supply contracts that could have been invoked.
I think you did.There we different factors at play in different countries - even if Brexit had never happened we would have had exactly the same outcomes. You will not find a single credible reason for our energy prices being linked to Brexit. Nor did I blame the EU,
And I never mentioned Brexit either.Why were energy prices tied to the TTF rather than oil price which caused the eye watering price rises caused by loss of refining capacity? Two words “European Union”.
I think you did.
And I never mentioned Brexit either.
You blamed the EU for wholesale energy being tied to TTF. It’s literally what you said. The decision to tie energy costs to the marginal rate (which is almost always TTF) is nothing to do with the EU, and whilst it has worked well for many years, the shock of TTF going up by hundreds of percent in a very short period meant that it became a really bad way of calculating the wholesale price as far as the consumer was concerned, but brilliant for the non-gas energy producers, who suddenly were making huge windfall profits. It was within the government’s power to make a temporary change to the pricing formula but they chose not to. Anyway it’s all academic and we aren’t going to agree so I’ll leave it there.I didn’t. That fact you choose to see it that way says more about you and your preconceived ideas. The decision to peg against TTF has saved consumers millions, up until it all went wrong.
You didn’t mention Brexit, my original post was to someone whom had.