Credit deflation and the reflation cycle to come (part 2)

[Gin]

British Gas to supply customers of People’s Energy.

 

edit..350,000 domestic and 500 business.

 

 

https://www.centrica.com/media-centre/news/2021/british-gas-to-supply-customers-of-people-s-energy/

[belfastchild]

12 minutes ago, Cattle Prod said:

The sun does, and we currently have very low sunspot activity. Why no one pays attention to this anymore is beyond me, perhaps you can't do your attention seeking there and block a road on the sun.

I went aurora hunting in Northern Norway in early 2013. I was led to believe it might be the last decent chance to see the Northern Lights for around 10-15 years (so possibly my lifetime being the optimistic soul I am ;-) ). We are pretty much at the bottom of the solar cycle right now.

Its amazing the correlation between solar minima and pandemics... no really it is... you would think they were related to the lack of sunlight/sun power or something

[planit]

[With regards to the Energy companies going into liquidation and Sancho's question on honouring the contracts]

@sancho panza

The customers are worth money so they will put a value on the customers and then look at the deal they signed up on to see if it is profitable.

I got the impression that it was a good deal for Centrica on the early ones but once it got worse the big companies realised they could push the government for more (being in a position of power).

This is probably concessions with regards to competition or pricing or investment which are worth way more than the customers to Centrica etc.

[Harley]

I have a watchlist of UK allowed ETFs.  They cover everything.  In the sector segment, all were red yesterday except three: biotech, healthcare, and.........the GDX equivalent!!!   Only up 0.7% but the others were down so add some of that loss  The GDXJ equivalent was however down a bit.

PS:  The agricultural ETF was up over 6%!

[VeryMeanReversion]

Recently bought BAT, Imperial, Vodafone and GDXJ after they all hit buy limits I set up a few weeks ago. That's my first gold related buy.

I'll pick up more platinum if it goes sub 900. Seems to be the metal no one is interested in yet is historically 2x gold.

Still have 30 percent cash reserve for a BK.

[Harley]

26 minutes ago, Gin said:

British Gas to supply customers of People’s Energy.

 

350 domestic and 500 business.

 

 

https://www.centrica.com/media-centre/news/2021/british-gas-to-supply-customers-of-people-s-energy/

Is that all?

[Gin]

3 minutes ago, Harley said:

Is that all?

Sorry 350,000

[Harley]

1 hour ago, Castlevania said:

That’s why there’s chatter of the government having to set up their own provider if several more providers go under.

Er, or these folk have to renew on higher tariffs like I just had to when mine came to an end!

6 minutes ago, Gin said:

Sorry 350,000

Is that all!! 

[Harley]

8 hours ago, The Grey Man said:

As forewarned on this thread, it is no longer just asset prices. The central printers have sent this direct to immediate spending  now.

It's an old saying...."First you have the good (asset) inflation and then you have....".  The "Death of Money" et al.

[Hancock]

19 minutes ago, Harley said:

I jave a watchlist of UK allowed ETFs. 

Any chance you can put a screenshot of this list on here, see what i've missed.

[Castlevania]

12 minutes ago, Harley said:

Er, or these folk have to renew on higher tariffs like I just had to when mine came to an end!

Is that all!! 

There’s a price cap so could still be a fair bit lower than spot.

[Noallegiance]

https://www.bbc.co.uk/news/business-58634106

"Speaking on BBC Breakfast, Business Secretary Kwasi Kwarteng denied that energy companies would get government bailouts.

"I do not think it's the right thing for taxpayers' money to be injected into companies that have been badly run," he said."

Taking a leaf out of the Chinese book?

20 years too late with this attitude, but it's a start, I guess.

[Democorruptcy]

1 hour ago, Castlevania said:

@sancho panza The Scottish play or another provider has to agree to take on the customers. If you end up in a situation where wholesale prices are elevated and you have to buy more power at spot to fulfill the new customers who’ll be paying less you might not want to take on all those customers. That’s why there’s chatter of the government having to set up their own provider if several more providers go under.

The new supplier doesn't have to honour the customer's existing contract:

 

Quote

 

Will I be on a different contract with my new supplier?

Yes.

Your old tariff will end.

Instead, your new supplier will put you on a special ‘deemed’ contract. This means a contract you haven’t chosen. This contract will last for as long as you want it to.

https://www.ofgem.gov.uk/information-consumers/energy-advice-households/what-happens-if-your-energy-supplier-goes-bust

 

There was a poor unfortunate man on TV this morning saying his bill had doubled. Personally I would like to wish him all the best, no doubt you vultures will just be thinking "thanks for the money you mug"

[Noallegiance]

25 minutes ago, Noallegiance said:

https://www.bbc.co.uk/news/business-58634106

"Speaking on BBC Breakfast, Business Secretary Kwasi Kwarteng denied that energy companies would get government bailouts.

"I do not think it's the right thing for taxpayers' money to be injected into companies that have been badly run," he said."

Taking a leaf out of the Chinese book?

20 years too late with this attitude, but it's a start, I guess.

Unfortunately the next paragraph goes on to say that the little companies can go and, of course, the big boys will be saved.

[Harley]

32 minutes ago, Noallegiance said:

https://www.bbc.co.uk/news/business-58634106

"Speaking on BBC Breakfast, Business Secretary Kwasi Kwarteng denied that energy companies would get government bailouts.

"I do not think it's the right thing for taxpayers' money to be injected into companies that have been badly run," he said."

Taking a leaf out of the Chinese book?

20 years too late with this attitude, but it's a start, I guess.

But they'll still do something as beneficial.  These people are Canute like meddlers using other people's money by nature.  FFS, don't get involved in the hard work far beyond your capabilities of building out capacity, etc, just introduce price controls like say Venezuela.  One reason we have this problem (and several others) to start with.

[Boon]

What is the energy price cap when transferred into p/Kwh? 

I was unfortunate as I had a fixed deal running out this month, but the new one is about 20% more. How are people getting double bills?

Until I read more than a few people complaining on mumsnet I can't see how this will be true.

[sancho panza]

2 hours ago, Castlevania said:

@sancho panza The Scottish play or another provider has to agree to take on the customers. If you end up in a situation where wholesale prices are elevated and you have to buy more power at spot to fulfill the new customers who’ll be paying less you might not want to take on all those customers. That’s why there’s chatter of the government having to set up their own provider if several more providers go under.

Lovely explanation thank you.So the bail out will be of customers on low fixed tarriffs rather than the companies themselves as per @DurhamBorn's thesis.

 

On another unrelated matter of Evergrande.Holger has a post that the longs here will sync with.Personally I'd be looking for anything systemic to be moving Junk bond yields more than they are

[Barnsey]

 

[Chewing Grass]

Just had some BS come through from a big company we do work for, 10 years ago they referred to their work as a business, 5 years ago it was a mission, it has just turned into 'a purpose' so I'm glad they still have that and money doesn't come into it any more...

[Democorruptcy]

35 minutes ago, Noallegiance said:

https://www.bbc.co.uk/news/business-58634106

"Speaking on BBC Breakfast, Business Secretary Kwasi Kwarteng denied that energy companies would get government bailouts.

"I do not think it's the right thing for taxpayers' money to be injected into companies that have been badly run," he said."

Taking a leaf out of the Chinese book?

20 years too late with this attitude, but it's a start, I guess.

Being badly run has never stopped them giving taxpayers' money to bankers.

[Harley]

7 minutes ago, Barnsey said:

 

Ah, Stagecoach popped a bit recently!  Maybe I'll get me losses back? 

[Hancock]

11 minutes ago, Chewing Grass said:

Just had some BS come through from a big company we do work for, 10 years ago they referred to their work as a business, 5 years ago it was a mission, it has just turned into 'a purpose' so I'm glad they still have that and money doesn't come into it any more...

To think full grown adults have sat down in a room and come up with that, and not one of them has called it out for being complete and utter bollocks. Sad thing is its normal in the 2020s.

[supernaut]

Centrica back in the black for me 

Just need some of my bad punts on hurricane and reabold to move a lot to get me break even on them

Nice to see shell divi hit too

 

[Democorruptcy]

9 minutes ago, supernaut said:

Centrica back in the black for me 

Just need some of my bad punts on hurricane and reabold to move a lot to get me break even on them

Nice to see shell divi hit too

 

I had a monitor like that once, just tap it a few times on the right hand side.

[sleepwello'nights]

Forgive my ignorance but I've been too foccussed on the Covid nonsense to follow more relevant topics that the Covid scare has been designed to hide.

Why have gas prices increased so much. The gas in the ground is still there, distribution costs and maintenance of pipe lines can't have increased to any great extent. 

Has demand increased to cause the spike in price?