PeteMorris Posted September 1, 2014 Author Share Posted September 1, 2014 If you apply the rules of supply and demand, doesn't less demand lead to cheaper prices? On the international markets more demand pushes up the price. If something is a rare and precious commodity, then it's value is more costworthy. It's a bit like the Opec countries. They agree between themselves how much oil production they will make, in order to keep the prices high. Too much oil swilling about isn't good for prices, but hang back on production of it, and the price goes up. It would be the same with electricity prices. Use less, it becomes more expensive. Link to comment Share on other sites More sharing options...
truman Posted September 1, 2014 Share Posted September 1, 2014 If something is a rare and precious commodity, then it's value is more costworthy. It's a bit like the Opec countries. They agree between themselves how much oil production they will make, in order to keep the prices high. Too much oil swilling about isn't good for prices, but hang back on production of it, and the price goes up. It would be the same with electricity prices. Use less, it becomes more expensive. I think you have it the wrong way round Pete...OPEC use supply to control prices... if demand for a particular product drops why would the producer increase its price..how would that help them sell more..if prices went up wouldn't that just decrease demand even further? Genuine questions.. Link to comment Share on other sites More sharing options...
butlers Posted September 1, 2014 Share Posted September 1, 2014 Its an agreed Eu directive that has stopped the mobile companys from sky high roaming rates,48p a min was common a few years back ,they will be abolished in 2years time. Was also Eu that made our water companies clean thier act up in regard of dumping untreated sewage in the sea.Those were our bathing beaches too. In ye olden days electrical appliances came without plugs.Every year that claimed lives here with people miswiring them ,again those pesky desk sitters changed that. Link to comment Share on other sites More sharing options...
JFKvsNixon Posted September 1, 2014 Share Posted September 1, 2014 If something is a rare and precious commodity, then it's value is more costworthy. It's a bit like the Opec countries. They agree between themselves how much oil production they will make, in order to keep the prices high. Too much oil swilling about isn't good for prices, but hang back on production of it, and the price goes up. It would be the same with electricity prices. Use less, it becomes more expensive. So you think that more people trying to buy oil in an auction, which in effect is what the international markets are, would lead to lower prices? Fair enough. Also, my point was if we use less electricity, the power companies would have to generate less electricity, then they'd have to buy less oil, gas etc to generate that electricity, so their costs would also drop. Dramatically if we (the EU) manage to limit our reliance on Russia and the Middle East for our energy needs. Link to comment Share on other sites More sharing options...
Obelix Posted September 1, 2014 Share Posted September 1, 2014 Surely it's supply and demand? If they buy less, then that cost will be more expensive... Why? IF the demand for a good is reduced, people buy less. That means that sellers have to reduce prices to persuade people to buy from them. The end result is that the most expensive sellers in the market place who are unable to lower prices are shaken out and exit the market and the remaining suppliers are selling at a lower price. Link to comment Share on other sites More sharing options...
PeteMorris Posted September 1, 2014 Author Share Posted September 1, 2014 I think you have it the wrong way round Pete...OPEC use supply to control prices... if demand for a particular product drops why would the producer increase its price..how would that help them sell more..if prices went up wouldn't that just decrease demand even further? Genuine questions.. Only if you had a choice of whether to buy it or not. Could you go without electricity? ---------- Post added 01-09-2014 at 11:54 ---------- I can actually all your points of view on this, but my point is, that none of this savings in electricity, is going to result in 'Joe Soap' consumer paying less. The power supply companies are in business to extract as much money from our pockets as they can get away with, and I don't see that improving regardless of EU directives limiting Vacuum cleaners or hair dryers wattages....It ain't gonna happen. Link to comment Share on other sites More sharing options...
SevenRivers Posted September 1, 2014 Share Posted September 1, 2014 If they want to save energy they could start by not launching satellites into the wrong orbit. Link to comment Share on other sites More sharing options...
tzijlstra Posted September 1, 2014 Share Posted September 1, 2014 Pete you have a few things muddled up here mate. This directive is part of the pathway to a more energy efficient Europe in 2020, something all member states agreed to - reason for this is three-fold: Europe has a rapidly ageing electricity manufacturing capacity that needs massive investment to remain functional, let alone competitive and two We all agreed that using up fossil fuels at the increasing rate we were doing was daft. Finally there is the small issue that Europe as a continent is more dependant on foreign states for energy than any other continent out there. The rate we use electricity and oil far outstrips supply on our own shores, thus we have to buy from naughty neighbours like Russia and the Middle-East. For me, these first announcements are nowhere near far enough to force energy consumption down. For those mocking the effect, I am sure you mocked the introduction of energy efficient bulbs (oh yeah, another EU directive, part of the same framework) it has demonstrably led to a significant decrease in electricity use though, not to mention the increased lifespan of thee units compared to old fashioned bulbs. Link to comment Share on other sites More sharing options...
JFKvsNixon Posted September 1, 2014 Share Posted September 1, 2014 Only if you had a choice of whether to buy it or not. Could you go without electricity? No but we could become more efficient, and buy less. Anyway this is getting confusing as you were talking about OPEC controlling prices a couple of post after talking about how supply and demand would control prices. Link to comment Share on other sites More sharing options...
PeteMorris Posted September 1, 2014 Author Share Posted September 1, 2014 Why? IF the demand for a good is reduced, people buy less. That means that sellers have to reduce prices to persuade people to buy from them. The end result is that the most expensive sellers in the market place who are unable to lower prices are shaken out and exit the market and the remaining suppliers are selling at a lower price. As I said above....that only applies, if you have a choice of whether you buy that commodity or not....We don't have a choice. Link to comment Share on other sites More sharing options...
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