It was only a short while ago that Boris Johnson the Prime Minister of the United Kingdom met up with other G7 leaders in Madrid. They came up with a plan, or as Rishi Sunak calls it, a “scheme” to thwart those pesky Russians from profiting off of their natural gas sales to Europe. The plan was simple, “if the Russians want $100, we’ll tell them we’ll pay $20 and they can take it or leave it.” The details escape me, but, that is the gist of it. Simple really.
So, in the UK, we will shortly be paying 50p per KWh due to the 77% price increase in Ofgem’s energy cap. This, while Centrica has posted record profits for the last six months of £1.34 billion and Shell has hit a record $11.3 billion. The message is, the generators are doing fine, in fact, they’re making five to ten times their usual profits. Well, I now have a solution to the rising cost of energy in the UK, and that is to cap the wholesale price charged by generators. If it’ll work for Russian gas, then why not Centrica or Shell or BP?
Small businesses in the UK are now on the brink of extinction. Typical prices are around 60p per KWh with a £3 daily standing charge. Thousands will go bust this Winter (22/23), and thousands of old folk will die. So, it’s now time for the UK to take emergency action by nationalising energy supply and capping the wholesale price. The G7 postulation is that Russia have nowhere to sell their gas, and that argument holds too for the UK’s energy generators. Will it happen? I doubt it, because all these politicians are just bags of wind, they’re all talk, but no action, except when it comes to filling out their expense claims.