On Sun, 16 Oct 2005 23:40:26 +0100, Andy Hall wrote:

On Sun, 16 Oct 2005 21:49:34 +0100, Tim Lamb
wrote:

In message .uk, Ed
Sirett writes

So no-one sees any corellation in household fuel rising in-line with the
growth of condensing boilers?

One of the chief difficulties in statistics is separating out two effects
which (as it happens) seem to be linked. As time goes on it may become
clear there was no such link. A certain amount of common sense is needed
here.
1) If the demand for a commodity falls (due to installing condensing
boilers) then it's price is likely to fall.
2) Energy prices are subject to global market forces.
3) As "Dubya" would say there is a trouble in "Iraqistan".

Gas was traditionally priced to compete with *gas oil*. I am 20 years
out of date and don't know the current system.

How many of us have rushed to take up BGs offer to fix the price?

Probably about the same number that have 3* service contracts and
believe it's a wonderful deal or who buy lottery tickets.

Agreed, although the underlying trend will always be upwards as oil/gas
gets scarcer the recent big hike in prices is unsustainable as the oil/gas
is not (yet) truly three times more expensive to come by than it was a
year or two ago. So the fixed price deal looks like it taps into peoples
fears that there will be no end to gas price increases yet in reality
the price of gas is likely to come down (from the current very high level)
in the medium term. BG are offering to hold prices high for you until
when? (2010?).

--
Ed Sirett - Property maintainer and registered gas fitter.
The FAQ for uk.diy is at http://www.diyfaq.org.uk
Gas fitting FAQ http://www.makewrite.demon.co.uk/GasFitting.html
Sealed CH FAQ http://www.makewrite.demon.co.uk/SealedCH.html