Paddington Bear wrote: Tue Sep 13, 2022 10:11 am
Torquemada 1420 wrote: Tue Sep 13, 2022 9:51 am
Paddington Bear wrote: Tue Sep 13, 2022 9:48 am
Increasing supply not having immediate benefits is a weird criticism, given if any government had done it 5/10 years ago we wouldn’t be in the shit now
a) How is she proposing to increase supply? Does she mean increase the level of stocks of things like gas? Which would not be hard since currently storage is pretty much zero.
b) And who is experiencing shortages anyway? It's not the inability to turn on a kettle but the inability to be able to pay for the boiled water.
Which is inextricably linked to supply, this is not tough to grasp
Errrr, no, it's not. Not as far as the UK consumer is concerned. The massive price rises are largely (before the energy cos' opportunistic, additional gouging) down to intl, wholesale supply and shortages: real, perceived or anticipated.
So unless Truss is going to magically conjure up supplies of gas independent of the global markets (i.e. home sourced from fracking, oil, whatever or source domestic alternatives such as wind), then she can only increase domestic supply by purchasing (and storing.... which is another issue because the UK doesn't have storage capacity) from the wholesale market.......... at those same inflated prices. Ergo, increasing domestic supply capacity has f**k all effect on the price.
The O Level supply demand curve is completely irrelevant here because domestic demand is inelastic and the UK has zero control over supply.
BTW, Truss going out to try and buy more gas to stockpile would actually increase the demand upon the global market and actually push prices up: although not by much since the UK is a rounding error when talking an incremental increase.