The start of hyper inflation coming to the UK

The latest news is that one of the energy companies will be increasing their charges to customers by 19%.
The other energy companies will soon follow suit.

The excuse offered this time is that the whole sale price has gone up so these costs have to be passed on.
There is also talk of a further 25% price increase for this coming winter.
Sounds like we will all be wrapping up and living in one room this winter.

Although I have no proof, I do believe this is the start of hyper inflation here in the UK since any energy costs will eventually filter their way down to goods that people buy.

From web site :-

'Energy bills could rise by almost £200 per household this year if all six big suppliers follow the lead set by Scottish Power.

Its 2.4 million customers will pay an extra 19% for gas and 10% for electricity from August 1.

The other main suppliers, including nPower, E.On and EDF have told Sky News their prices are constantly under review.

However British Gas warned that wholesale energy prices are expected to rise by a further 25% this winter and that "end user prices are yet to reflect this".

Roll on hyper inflation time !

More details here

Energy prices set to rise by 19%

So you don't understand what hyper-inflatuion is. Okay, next.

Originally posted by diddy1234


From web site :-

'Energy bills could rise by almost £200 per household this year if all six big suppliers follow the lead set by Scottish Power.

£200? Bloody Hell,Mate! What's the world coming to? How are most people in the UK going to be able to handle that if food prices are also affected by this? I hope someone in government steps in and does something.....

It may not be Hyper Inflation but its certainly high inflation, especially when wages are being cut or remaining stagnant.

In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.[1] When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money

en.wikipedia.org...

Tho not hyper inflation, mix this with high fuel and food prices, lowering wages (the new Reed index puts starting salaries down 2%) higher taxes and less jobs (Reed Index shows a 4% reduction in job opportunities) we are seeing a real squeeze on households that is gonna hurt a lot of people.

While I agree with the recent changes to increase the minimum credit card payments, throw that one in the above mix and consumer spending will take a massive hit which will cause more job losses and further exacerbate the painful situation we are in..

Just looking at recent news, the airline industry is reporting potential loss in profit of 78%, new car sales are down for the 11th month in a row along with all the other bad news there simply is not enough good news to offset the bad.. which leaves me feeling there no way out of this negative spiral.

Let's not forget this:

www.guardian.co.uk...

Renewed calls for a Competition Commission inquiry into the energy market are expected after British Gas reported a 24% jump in profits to a record £742m last year.

British Gas, Britain's biggest supplier of electricity and gas, added 267,000 customers in 2010 and now has 16m accounts.

Operating profits at British Gas's parent company Centrica broke through the £2bn mark, jumping 29% to £2.3bn, also a record.

This is all its about. Watch there be similar headlines next time their profits are announced.

It amazes me how they try to justify this when according to their wiki page BG Group announced $3.5 billion profits last year.

Lets put this into context. My last winter quater (2008/2009) gas bill in the UK was around 500 GBP this is on a 3 Bed semi where the wife has the central heating on pretty much all the time


Anyway so with consecutive rises in 2009/2010, 2010/2011

and now these two rises. THis would comparatively put just the GAS bill to around 940.

This is very almost around 1 months salary for people on the AVERAGE UK wage (24000 pa). which the vast majority are not. so tha after Gas would allow about 300-400 for everything else

Mortgage / Rent
Electric
Water
TV Licence
Council Tax
Car Payment
Fuel
Road Tax
Insurances House / Car / Contents
Cable TV
Internet
Phone
Mobiles
Credit

Oh and then there's FOOD even before you think you might take in a movie or go to the pub

Seriously at this rate, people are GOING TO DIE!!!!!!

Oddly enough with a four bedroomed house the gas prices seemed the least of my problems past few years, electric being the crippler. This news does not bode well though. I've already flogged everything we could have burnt to keep warm paying last winters bills.

reply to post by Suspiria


Keeping the place heating was only a problem as the roof was like sieve!!

I bet the pensioners are glad they got their 2 pound extra a week!!!

Please wake up to realise what's going on in this world. Please take 30 minutes to read at least one part on the following link www.cuttingedge.org... If you can just for those 30 minutes suspend disbelief in illuminati and the church, please just read it. And then look at the news being reported here on ATS. Please, if it strikes a chord with you, please pass along the information to as many people as possible so that we can do something about it. Please just READ it. People need to be aware,
Thank you

I forgot to add to my post of woes, this is the first year I will have to pay a "drought" surcharge to the local Water company just after it was brought by JP Morgan. Even tho I sit above one of the largest aquifers in the UK, said to contain enough fresh water to last the country a few hundred years they still manage to get this surcharge passed the gov.. It is disgusting how these companies behave and how our government responds to them.

Originally posted by thoughtsfull
I forgot to add to my post of woes, this is the first year I will have to pay a "drought" surcharge to the local Water company just after it was brought by JP Morgan. Even tho I sit above one of the largest aquifers in the UK, said to contain enough fresh water to last the country a few hundred years they still manage to get this surcharge passed the gov.. It is disgusting how these companies behave and how our government responds to them.

Seriously the water company charged you because of a drought. i.e. lack of water. I thought it was traditional to charge people for the supply of clean potable water, not charge them for not supplying because of drought!!!!

Has the country taken leave of it's senses!!

Pitch forks at the ready!

Muhahah. This is not hyperinflation. I remember hyperinflation in Poland after communism fall. It was not 19% or even 30% rise of prices. Hyperinflation is when you get your payment in the beginning of the month and you could buy 500 loafs of bread and in the end of the same month for the same money you could buy only 200 loafs. After a year your month payment in banknotes could fill a huge suitcase and it is to heavy to take it to home but it is not enough to take taxi. This is hyperinflation.

reply to post by odyseusz


Well that is pretty bad. however even before I left, you would get paid on the last day of the month. And by the 1st you were flat broke, without having bought a thing to eat.

God knows what its like now!

reply to post by JakiusFogg


No it is a new charging tariff the water companies are beginning to adopt.. one that increases during the summer months under the banner of "water stress" and applies regardless of how much it rains.

I live above one of the largest aquifers and the water company and campaign groups are still trying to convince everyone that we should pay more as we have less water available in Sussex than Syria or Sudan *make of that what you will*

But the bottom line is that this another part of our infrastructure sold to foreign interests who have been given carte blanche by the Gov to scam more cash from those who can ill afford it.

reply to post by thoughtsfull


Right gotcha. Their just pulling the old supply and demand trick. But I bet my last penny they won't release their supply and demand usage figures across the year.

reply to post by JakiusFogg


Of course, the company in question has already been hit with a £20 million fine for deliberately misreporting information and they'll stick by the notion that we are short of water (even after that they increased profits year on year to £120 million profit for 2010, which is set to increase with the new tariff)

reply to post by thoughtsfull


And yet this is it, people grumble sure, some will fall behind. other will default and be taken to court. Other adjudged bankrupt for failing to pay for something that is a necessity for LIFE. and yet no one likes the companies for doing this.

But where is the outrage? I am as guilty as the rest for apathy, but when is enough really enough.

I know what people can do. Start collecting rain water, or dig a well, that's what the do in the US. OR at the least EVERYONE should actively watch their consumption, to the absolute minimum.

They want to cite supply and demand. What happens when the demand drops? When the buggers see it hitting their profits. the you will see things move.

The power in service industries is ALWAYS in the power of the consumer. We just have to get over the feeling we have a RIGHT to be wasteful.

Originally posted by JakiusFogg
Lets put this into context. My last winter quater (2008/2009) gas bill in the UK was around 500 GBP this is on a 3 Bed semi where the wife has the central heating on pretty much all the time

You could ask your wife to put some clothes on instead of the central heating?

My annual combined[/] gas/electric bill for 2 people in a 2 bedroom modern mid terrace house is ~£400.

But I rarely have the heating on in winter and never the rest of the year. If it gets really cold I someti8mes shut the back door though

All that aside, these price hikes are going to affect a lot of people a lot more than me and, as the OP rightly intimates, will lead to further widespread prices rises as manufacturers and retailers alike are hit by increased energy bills.

edit on 8-6-2011 by Essan because: (no reason given)