29 August - Can civil unrest be far away?
While
you stand shell shocked at the prospect of energy bills rising by another 80% in
just a month’s time take a look at this quotation issued by Octopus Energy to a
public house this week. More than a pound a unit plus 20% (not 5%) VAT and the Climate Change Levy.
When the 80% increase kicks in businesses will have to pay well over £2 for a
unit of electricity. I remember my Dad complaining that the price had gone up to
a penny halfpenny (not much more than half a penny in decimal currency) in the
late 1950s after the forecast was that the coming of nuclear power would reduce the price to almost nothing.
Inflation over those years has increased prices by sixteen times so assuming my
memory is correct, and the government website suggests it is, one kilowatt of
electricity should now cost less than ten pence.
One would have thought that more efficient generation would have reduced prices
but the idiotic decisions of the past fifty years have put paid to that. Nuclear
on the decline, no coal and massive subsidies to renewables plus VAT.
Why could no one in government see that coming? But it could be worse, at least
we are not Germany who put all its eggs in Putin’s basket.
With the radio on all the time I have heard many reports of pensioners in
particular talking of “heat or eat” and of course the media lap up such scare
stories. Most of my friends are retired and I have spoken to some who are getting to be a little worried about the
projected £3,549 energy cap. But some appear to have forgotten that is an average dependent on consumption. A
single person living alone in a small house will be unlikely to reach that level.
My supplier consistently estimates my consumption to be around twice what it
actually is but even their dubious estimates put me under the £3,549 level. I am currently
paying around £60 a month (£1·79 yesterday for gas and electricity including
standing charges) and that will go up by 80% in October. £108. Even if
the Winter consumption doubles between November and March the annual charge will be ‘only’ £1,800.
To offset that the Government will give pensioners their Winter Fuel Allowance
which is said to have increased to £300 per household and this year every household will get a £400 rebate delivered via their bills.
But the prices will go up again in January. And in April.
Things are clearly not good but the elderly should perhaps not get totally despondent
as economies may be possible. One of my friends called yesterday to ask
what he could do to reduce his bill. I learned that he keeps his immersion
heater running for at least seven hours a day with the thermostat set at a scalding 70°C.
What is the point of heating the water to such a temperature and mix in cold to
make it usable? Try 55°C and an hour and a half was my suggestion. The heat
losses from the tank must be enormous. Always remember that heat losses are
directly proportional to the temperature difference. Those who claim it costs
less to keep the central heating on all day than allow overnight cooling and
switch it on again in the morning should get a job Tweeting for @bexleynews. They are talking total rot. (†)
In all probability the new Prime Minister will rapidly address the situation and get our grandchildren to pay for it.
† My A level physics practical examination required me to construct an experiment to prove that assertion and I scored 93%
overall. A lesson I have never forgotten.