It was only a few months ago it was under $2.00.
Prime Minister Ardern said we are being “fleeced”. More like we are being “skinned”, wool and all. It seems to slip her mind that half the “fleecing” is being done by her government. They are grabbing $1.45 of that $2.65. Having ratcheted up spending the government now needs all the revenue they can get their hands on. Having captured a moment’s limelight for making the claim she has moved on, yet again to another publicity podium, unable to deliver any outcome of substance.
Our electricity prices are also escalating.
Spot prices went berserk over the winter. Those chickens are coming home to roost sooner rather than later. Natural gas prices are also up. The CPI and inflation numbers look worse by the day. The recently announced 4.9% is only the beginning. Brown outs and blackouts are a reality. It is not just the claims of low lake levels, of limited generation on cold, still nights; its load balance, it’s the urgent need to replace the Cook Strait cables, its Auckland voracious appetite for power when its mostly generated in the deep south, its gas running out, its Huntly closing, its environmentalists stopping hydro development. The future looks grim.
Australia is also facing growing energy price escalation and supply problems. Electricity prices are up nearly 12% in the last 12 months to a record average charge of 34.41 cents per kilowatt-hour. Melbourne fuel prices have reached new highs with the cost of a fill up, $60 up on 18 months ago.
Energy prices in Europe are relevant. In 12 months the natural gas price has jumped from 10.85 Euros per MWH to 51.20 Euros. That is almost a 400% increase in a year.
The rot set in last winter when Mother nature thumbed her nose at the hysterical climate change crowd by lowering temperatures well below average. Demand shot up, reserves collapsed and Putin rode the windfall from his pipeline all the way to the bank. European leaders humiliated themselves by begging the Russians to increase supply and hold prices down.
Cutting coal use and finding that wind turbines are underperforming is not helping. Petrol prices are rising and predicted to go much higher. In the Netherlands they are paying an eye-watering NZ$3.12 a litre. Denmark pays NZ$2.90. Petrol prices are expected to rise another half a Euro or NZ$0.95 over the next 12 months.
Europe is starting to pay a high price for trying to remove coal as an energy source. It is not just Europe, either. World demand for all types of energy is rising. Politicians are caught between green group pressures, demands from the IPCC, the UN, along with some businesses trying to outbid each other to be “green” and their voters – households and small businesses struggling with mounting bills on essential items. Fuel price increases cartwheel through the economy affecting all items in a home budget.
Europe’s cap and trade ETS scheme is also contributing to rising energy prices. Those countries with a higher than average exposure to coal are hurting. The Polish Prime Minister is loud in his condemnation of EU policy.
Politicians know that all surveys of voters show that the population is in favour of climate change being taken seriously but then vows to not paying a dollar towards the wild and extravagant counter proposals to stop warming. It’s the old syndrome of everyone wanting to go to heaven but no one wanting to die. Now the subsidies are being offered by Governments determined to save their skins. France has their "chèque énergie", Spain is reducing taxes on fuel, Italy is offering help to homes and Boris has been given a strong message from vulnerable MP’s.
This coming winter in Europe will be interesting. If there is another cold spell and if Putin blackmails the Europeans again holding out on sending more gas down the pipeline, anger and frustration could spill out onto the streets.
Amidst this turmoil and pain a gaggle of globalists, elitists, politicians, crazed greenies and a few scientists will blithely jet into Glasgow, into an isolated bubble of fantasy, high priced hotel rooms, glitzy conference facilities, electric cars charged on diesel powered generators, totally remote from the chaos their policies are causing. They might as well be on another planet.
They will not be footing the enormous costs of their brazen extravagance. We will – the taxpayers. And pay we will again and again, more and more as their unnecessary, centralised controls drive energy prices higher and higher.
Owen Jennings, a former Member of Parliament and President of Federated Farmers, maintains a keen interest in ensuring agricultural policies are sensible and fit for purpose.