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Darling, the candle's nearly finished

Darling: I want answers over energy price hikes - Scotsman.com News

ALISTAIR Darling has summoned energy regulators into a Whitehall meeting to discuss the cost of power after one of the UK's biggest energy suppliers announced double-digit price increases.

Sweet, he has been allowed to get out his crayons and write a letter to break the boredom of doing sod all because Uncle Gordy won't let him. Obviously it is hard to understand why retail suppliers put their prices up when the wholesale price goes up, I mean wholesale prices are nasty Tory things that evil capitalists do to each other, but fuel prices effect Labour voters and so why should they also go up?

But if he does want an explanation he could try the Devil...

Comments

Ahem! My theory is that the present overwhelming popularity of "impact (on)" is because there is only one way to spell it - today's journalists don't know the difference between "affect" and "effect".
So what you really mean is that "fuel prices impact on (ugh!) Labour voters"?

What's the problem? With Global Warming we should all be using less energy so the increase costs will be cancelled out.

What we have to remember is that energy is primarily purchased at the wholesale level in US Dollars, and then resold at the retain level in Pounds Sterling.

Over the past year we have seen the level of the USD change from being USD 1.5ish to the £, to around USD 2 to the pound.

That means energy would have been about 25pct cheaper to purchase before the price rises, but with the price rises we are only approximately 5pct higher now.

Energy companies certainly do not want people delving into their currency exchange workings to realise that if they put up the retail prices by 10pct they have instantly delivered themselves an extra 5pct profits.

Its all to do with perception, keep telling the people that the wholesale price has gone up, but ignore the fact that the dollar has gone down.

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