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Take Control of the Hole in your Pocket.

 

Take control your spend on fuel electricity and gas this year, where possible, as prices begin to hike.

 

Gas and Electricity world price volatility

 

According to an article in the Brussels Times, dated October 6, 2021, energy prices have been volatile over the past 2 years and have been on the increase. It is said that the price increase is to be about €116 for electricity for the incoming year and has increased six fold for gas already in just one year. These numbers represent record high increases!

 

Petrol and Diesel upward trend

 

Petrol and diesel prices have risen again since 15/10/21 from between 2,1 and 3 cents per litre.

 

Reasons for sky-rocketing prices

 

Gas

In 2021, natural gas prices can be multiplied by 6 per megawatt supply.

 

This has been explained by post lockdown compensation spending around the globe.

 

Another likely reason is that Gazprom did not increase supply with the surge in demand in order to create leverage on an approval required for the Russia-Germany pipeline which is not in line with EU rules.

 

A limited supply of fossil fuel permits, which are required to produce any amount of fossil fuel. Remembering that natural gas is indeed a fossil fuel.

 

The European Commission (EC) wants a reduction in greenhouse gas, caused by use of fossil fuels, by 55% in 10 years.

 

This demand for permits is said to place a further 20% increase in price.

 

Electricity

Many countries use natural gas to generate electricity. In the UK a third of electricity is produced this way and in Belgium 55% is produced via nuclear energy and the remainder mostly natural gas.

 

Since gas prices have risen and continue to do so, electricity prices will follow, although it seems at a slower pace than the gas.

 

Petrol and Diesel

Petrol and diesel fuel prices have risen due to an increase in crude oil prices. The reason is again a steep increase in demand post lockdown crisis and government taxes.

 

Another reason is attributed to oil refineries suffering bottlenecks due to delayed maintenance and dampened production caused by COVID slowdown.

 

How will price stabilisation be carried out.

 Renewable or green energy

The most obvious way but not the fastest, would be to switch to renewable energy sources, like solar and wind power. This may not be in the hands of the consumer for many as it us cost prohibitive but rather at authority level.

 

Building renovations

There may be a call on governments to insist on improved building insulation.

 

Reduced taxes and levies

A reduction in energy tax and fixed levies could be a possibility for authorities to help consumers.

 

 

What can the consumer do now to take control of prices?

 Energy contracts

Consumers may want to renegotiate their energy contracts from variable to fixed rates, therefore buffering against the price surge.

 

Green car

If you have the resources and need to buy a new car, a green fuel car would reduce your tax and fuel cost considerably.

 

Vapour Washing Machine

After doing some digging on the subject of steam cleaning washing machines, I found they may help us to better take control of our water usage and energy excesses. Choose wisely though as some received bad reviews and proved to be inefficient and costly. Use an online guide before buying.

 

Hob

Reduce gas consumption by switching from a gas hob to an electrical one.

 

Thermostat

Reduce the thermostat by 5°C and wear an extra jumper in the house. Instead of the usual 22°C, make it 17°C. It’s not too much of a sacrifice.

 

Rainwater tank

 A rainwater tank can be kept in your garden and used to water your plants, wash your car or even indoors to flush toilets if you need to be drastic.

 

We’ll be on the lookout for ways to slash costs. I like to have your feedback on ways to save that you have put into place for any reason at all.