Who bought all the dear oil and Gas for us and who did they buy it from?

[kellsangel]

Who bought all the dear oil and Gas for us, and who did they buy it from?


Ireland is being stiffed for very expensive electricity despite a huge fall in the price of oil and indeed gas.

A 17% increase was granted in electricity prices and there was speculation about a further increase at the end of 2008 until good council prevailed and implemented a price drop of 1%.

The ESB have increased the minimum cost of connecting a new house to circa €1700

In addition every householder will get a rebate of circa €50 which will amount to a sum of circa €100 million nationally still far short of the 320 million surplus the ESB will generate on the back of increased tariffs.

CER tells us that we are insulated from price increases until September 2009

An incredible spin to put on a disastrous decision.

This is because fuel supplies needed for generation were locked in until September 2009.

Someone made an awful lot of money from this arrangement as our electricity prices are based on 140 dollar oil and peak gas prices.

approximately 50% of our electricity is derived from natural gas.

Who advised on this deal?

Who made the deal?

Who sold the fossil energy to our energy generators.?

[TradCat]

Will heads roll? Don't hold your breath.

[sparkey321]

And if oil had gone up they would have been called heroes ? Or just ignored.

What about all the people on P.ie who were convinced oil was going to $200 plus per barrel and was going to stay there forever ?

[NapperTandy]

They are telling lies. The Govt wants to sell the ESB during the Summer. If the price of electricity is higher, it means the company looks more profitable on paper. Why is U.K looking to decrease the price of electricity and gas, and they are buying the gas and oil in a devalued currency? I heard the Energy Regulator on the radio just after Christmas, and he sounded very unconvincing. He is just another Govt eejit like the Financial Regulator

[kellsangel]

The ESB did sell off some some generation stations


Dear electricity would tend to raise their value.


But why should the CER which cost s us 16 million a year allow electricity suppliers forward sell electricity at huge prices when much oil was being bought for speculation rather than consumption?

Are we not better to pay the rate on the day and provide adequate inter connectors?

[seabhcan]

I was wondering this myself. In the north, they just cut prices by 15% - on top of the 20% fall in the price of sterling.

Are we getting ripped off with 17c/unit?

[kellsangel]

I was wondering this myself. In the north, they just cut prices by 15% - on top of the 20% fall in the price of sterling.

Are we getting ripped off with 17c/unit?

Plus standing domestic charge

[euroboy]

I wouldn't be too hard on the people that brought our supplies of oil/gas at high prices last year; the market was extremely volitile and no-one knew how high prices would go(everyone expected it to rise) in the future(remember once economic growth recovers the world will demand more fuel than ever before) and they wanted to lock in what they thought was moderate prices in the belief that prices would rise even futher.

It was just unfortunate that oil/gas prices fell from fears of a long downturn in the international economy, but policymakers were wise to stock up, what if oil was $250 and we had a weak euro against the dollar during last weeks cold spell??


As for people who brought options at particular prices, well they can just let them expire and buy on the market thus only losing the option fees.

[NapperTandy]

I was wondering this myself. In the north, they just cut prices by 15% - on top of the 20% fall in the price of sterling.

Are we getting ripped off with 17c/unit?

Yes, big time! As far as I'm aware most energy companies also hedge the price of energy, ie: the same as Ryanair and Aer Lingus. I would be very surprised if they didn't take out some insurance policy against falling and rising prices for gas and oil. They are cleaning up big time time, the new energy companies that have entered the electricity market, Bord Gais, Aitricity and Energia are also making huge profits too. The country is just one big extortion racket.

[kellsangel]

I wouldn't be too hard on the people that brought our supplies of oil/gas at high prices last year; the market was extremely volitile and no-one knew how high prices would go(everyone expected it to rise) in the future(remember once economic growth recovers the world will demand more fuel than ever before) and they wanted to lock in what they thought was moderate prices in the belief that prices would rise even futher.

It was just unfortunate that oil/gas prices fell from fears of a long downturn in the international economy, but policymakers were wise to stock up, what if oil was $250 and we had a weak euro against the dollar during last weeks cold spell??


As for people who brought options at particular prices, well they can just let them expire and buy on the market thus only losing the option fees.

Would it make sense to store the dear oil and gas?

we only store three months supply of oil. increasing the storage capacity to three years would allow us to stock up when the price falls and off load some when the price rises.