It costs the oil/gas producers, those that own the offshore platforms, about £0.35/unit to get it to the 'beach'.
Note: the 'unit I refer to is NOT the unit in your gas meter.
From there it goes into the distribution network and your supplier. There is a cost uplift for the network and suppliers to cover their costs.
ATM all gas is sold on the open market, and here is where the problem is, (in my eyes).
Back in the day British Gas (ie the UK Gov at it was a nationalised industry) had agreements with most/all of the oil/gas producers to 'buy' their product at a fixed amount.
However over the years these agreements ended and were not renegotiated.
Back to the problem,
As the gas is sold at 'spot' price we are in the hands of 'the money men', those that sell 'future' etc.
In early 2020 the spot price was £0.09/unit, yes well below cost. However you & I did not see a huge reduction in our bills.
Many 'new' companies were setup to sell this product to you & I, making a profit out of the low gas price.
Roll forward 18 months and now the market price has jumped, the profit has gone, and now so have those that jumped on the band wagon. Boots filled!
In a year or so we will come back around the circle and prices will drop, a bit, but the winners will always be those 'money men'
Personally I feel the water/gas/electric SHOULD be a national industry, not because of my political views, but because they are necessities.
Sorry, I'll get off my box.
Steve
