Mark wrote:
On Tue, 4 Nov 2008 14:29:12 -0000, "Doctor Drivel"
wrote:

"John" wrote in message
...
Doctor Drivel wrote:
Gas prices are set by world oil prices and are external to the UK
government - we import gas.
Yes, that's true, but the *cost* of gas is far less than the *price* of
gas because of that link to oil and this country's inability to store gas
in any sufficient volume. What I don't understand is this lack of storage
capacity because gas comes from a hole in the ground. Once that hole is
empty of our (UK) gas, why can't it be filled with foreign gas at a time
when foreign gas is cheap for us to buy?
I have read that may be the case. Some old mines have been looked at too.
"but the *cost* of gas is far less than the *price* of gas". But the UK
government is powerless in this. All that can be done is store gas when it
is cheap. But if the price stays very high for sustained periods, as it
did, then the advantage is lost. We are then left with lots of stored gas
in case of pipeline fractures in Russia.

In the UK we have very little capacity for storing gas hence we are
very exposed to fluctuations in wholesale prices. Nevertheless the
Energy companies are still making large profits suggesting that they
are overcharging us.

France, for example, has capped energy price rises so we are probably
subsidizing the French!!

With about 60 nuclear power stations stockpiled with uranium, they can
afford to..