Bloomberg Article: Listening to European Electricity Traders Is Very, Very Scary

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I saw this article which was pretty eye opening about the state of the energy crisis in Europe. Apparently, UK December electricity futures are trading at $1.17 a kilowatt hour!


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British power generating capacity from Bloomberg.

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It's scary...Here's Oz wholesale prices, $/MWh...$50 is 5c/Kwh, retail is 30c/Kwh, which is the maximum price that a new retail contract can be offered, but if you accepted a discount the retailer can charge more than that.
If you look up Australian energy market intrvention, you'll see the couple of weeks that the market operator took control of the grid, at sustained above retail wholesale prices.

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South Wales, UK
We currently have a 4 bedroom detached house with an external garage. Nice house, but nothing spectacular. We moved in back in Feb 2018. The first year we lived here we paid £72/month for a dual fuel Gas & Electric supply. At the end of the first year we were £100 in credit.

Fast forward to 2022, we are paying £224/month and we expect it's going to go up to £360/month in October and up to £450/month in January.

Some thing has got to break at some point. Even at the current rate people, in 2 months when it starts to cool down here people are going to be picking between eating and heating.

We are lucky, we are financially 'comfortable'. Not much in the way of savings but we aren't worried about paying our energy bill every month. However, there are people that will die because of this. No doubt about it.
 
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The land of USA-made Subies!
ESG & climate activism is coming for us all. I don’t care what BMWTurboDzl thinks about “moving your investments elsewhere”, institutional investors and politicians getting fat at our expense have more weight in the market than all the rest of us combined. With governments picking winners and losers (read: subsidies & handouts) they will simply run the companies who don’t play ball right out of business. See: Covid lockdowns of all small biz, while Walmart & Amazon reap record profits.

The ONLY way to fight this is for people to wake TF up and stop purchasing by most convenient & start spending a majority of their money with LOCAL businesses. And even then it’s a losing battle. Hasn’t everyone played Monopoly?
 
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Atlanta,GA
ESG & climate activism is coming for us all. I don’t care what BMWTurboDzl thinks about “moving your investments elsewhere”, institutional investors and politicians getting fat at our expense have more weight in the market than all the rest of us combined. With governments picking winners and losers (read: subsidies & handouts) they will simply run the companies who don’t play ball right out of business. See: Covid lockdowns of all small biz, while Walmart & Amazon reap record profits.

The ONLY way to fight this is for people to wake TF up and stop purchasing by most convenient & start spending a majority of their money with LOCAL businesses. And even then it’s a losing battle. Hasn’t everyone played Monopoly?

If you personally invest in mutual funds, have a 401k or a pension you're an institutional investor. In any case the rise in prices has nothing to do with ESG.
 
Joined
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I saw this article which was pretty eye opening about the state of the energy crisis in Europe. Apparently, UK December electricity futures are trading at $1.17 a kilowatt hour!


image-119.png

British power generating capacity from Bloomberg.

https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Fb9472939-23d7-4a78-9a4a-7ad631e9ca4d_864x516.png
Russian energy import sanctions and historic drought which has throttled back energy production. NatGas stores are extremely low. This is to be expected.
 
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The EU crisis is caused by their own stupidity for even thinking that Russia or ANY communist regime would be a "Reliable & Steady" source provider. We're going down the same path, but our stupidity is not political it's green instead. At the rate they are pushing everything electric the grid will be overwhelmed, and the dumps will be overloaded with dead batteries. All changes take time to be successfully implemented, everything has to adjust, but today's green proponents think it's like throwing a switch.
 
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The EU crisis is caused by their own stupidity for even thinking that Russia or ANY communist regime would be a "Reliable & Steady" source provider. We're going down the same path, but our stupidity is not political it's green instead. At the rate they are pushing everything electric the grid will be overwhelmed, and the dumps will be overloaded with dead batteries. All changes take time to be successfully implemented, everything has to adjust, but today's green proponents think it's like throwing a switch.
They effectively put an embargo on Russian hydrocarbon imports. Not very smart but the ones who make these decisions are not affected by the consequences themselves. As a poster said above - the sheeple are being sheered, and they like it.
 
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In wartime, civilians often face shortages or doing without. That is a way of life in Europe. Russia's ability to wage war is being seriously degraded and most of the West considers that a substantial long-term win.
 
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Yeah so much for capitalism and free markets...
They will skin you alive.
We have national agency that guards above energy companies. I wonder when finally they'll do some act against this nonsense.
You do realize there is a war going on and the European governments and their voters voted to rely on Russia for the fuel source. Live with the mistakes and make yourselves self-sufficient again.
 
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Canuck - moved to —> California —> Texas —> ???
You do realize there is a war going on and the European governments and their voters voted to rely on Russia for the fuel source. Live with the mistakes and make yourselves self-sufficient again.

And we are doing something similar here too, shutting down our own production and buying from Middle East. Our mistakes haven’t caught up with us yet, that’s the difference.
 
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And we are doing something similar here too, shutting down our own production and buying from Middle East. Our mistakes haven’t caught up with us yet, that the difference.
But our decisions are based on costs, availability and capitalism

Yes capitalist driven decisions are many times stupid but it’s the flavor of the day, make maximum profits while letting downed refineries stagnate
 
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