“The vast majority of our products will remain at the same price in the coming year (2021-22) as they were last year (2020-21).
Bond pointed out that Pepco is making cost savings elsewhere to mitigate the impact.
“Therefore, we are confident that we will navigate this issue and do the right thing for customers while still meeting our financial goals.
China’s factory gate inflation at 26-year high
In China, factory gate inflation has hit its highest level in 26 years – as the global supply chain squeeze continues.
Chinese manufacturers increased their prices by 10.7% year-on-year in September as they passed on their customers to slash commodity and energy prices.
The National Bureau of Statistics reported that this was the highest reading since November 1995.
The boom in Chinese homes has not yet arrived, with NBS also reporting that consumer price inflation slowed to 0.7% in September.
But China’s rising producer price inflation could hit consumers around the world in the coming months – if suppliers pass on these higher costs.
stein jacobsen, Chief Investment Officer Saxo Bank, telling:
China PPI sets new modern record – increasing year-on-year to 10.7% (versus +10.5% expected) and thus the highest level since the 1994 currency devaluation.
Rising coal and natural gas prices have been a major driver of this growth. This key inflation gauge deserves close consideration because the world watches for the degree to which the “world’s factory” passes along high prices to global consumers of its production.
UK wholesale gas prices are rising this morning, back to the eye-watering record high seen last week.
Natural gas for delivery next month is up 7% this morning at 252p per therm.
That’s nearly five times that from earlier this year, when it traded around 50p per therm, a move that has put heavy energy users under pressure in recent weeks.
After Russia indicated it could stabilize the gas crisis if its controversial Nord Stream 2 undersea gas pipeline is approved, the price jumped more than 400p per therm last week.
Russian President Vladimir Putin has denied Russia limiting gas supplies to Europe to drive up prices, using energy as a “weapon” to sign the Nord Stream 2 pipeline.
European gas futures are also rising this morning as energy shortages continue.
Andy Harris, energy company consultant neonRockwarned this morning that the energy market was in the midst of a “perfect storm” following a surge in wholesale prices this year.
“I think this is a market that is set up to fail and my faith in the (regulatory) offgame has waned a bit,” he said on the BBC Today programme.
“we have a price range And it is true that consumers are not faced with extremes and are put in a situation where they have bills they cannot easily pay.
“Unfortunately the solutions that have been taken by the government and offgame are such that all the risk falls on the shoulders of the suppliers.
“By definition, when you hit a perfect storm, as we’re doing now, it’s only the broad-shouldered suppliers that are able to absorb those losses.”
The price range went up earlier this month, and is expected to jump when it’s next updated next spring.
Sunak is refusing to help businesses with gas prices
chancellor Rishi Sunak The U.S. has lowered hopes that the government can help businesses with rising gas prices, saying it “is not the government’s job” to manage the cost of individual products.
When asked if he would accept anything companies going out of businessSunak said he “believes in a market economy”, and that he must ensure that taxpayers’ money remains safe.
The comments come at a time when rising energy prices are straining firms – raising fears that industries may be closed.
Speaking in Washington after attending the G7 Finance Ministers, Sunak said:
We are ready to work with the business and support them as needed. It would not be appropriate for me to comment on the specific position of any one company.
But in general I believe in a market economy, because it has served us very well in this country. It is not the job of the government to manage and initiate the price of each individual product.
Sunak said the government recognizes that people worry about inflation — which is why it recently launched a £500m aid fund to help families this winter.
We are living up to some of these challenges, and we have stepped forward to provide support to families who need it.
However, the charity has warned that this winter hardship fund will not meet the scale of the challenge facing millions of low-income families.
When asked about the supply chain crisis, sunki Argued that the issues are “global in nature, so we cannot fix every single problem”, but pledged that there would be “a good amount”. Christmas Gifts are available”.
Has been locked in a fight with the craze quasi quartengo, Business Secretary, for any kind of financial support for companies at risk of closure from the energy crisis.
But firms have already warned that only to reduce the impact of the loan offer rising gas prices “Won’t solve the problem”.
Introduction: Industry could shut down if UK runs out of gas in freezing cold
Good morning, and welcome to our rolling coverage of the world economy, financial markets, the eurozone and trade.
A leading British industrialist has warned that the industry could be forced to shut down if it gets cold in Britain.
Sir Jim Ratcliffe The U.S. said last night that a lack of gas storage had left Britain vulnerable, and that gas prices were likely to remain high throughout the winter.
This could lead to widespread shutdowns, he warned, if rising demand from businesses and consumers outweighs supply due to a severe winter.
Appearing on ITV’s pestonRatcliffe – founder of the chemical giant INEOS – When asked whether the country could be closed due to prolonged cold, he replied:
“Yeah, what would you do if you shut down the industry?”
This will be a major blow to the economy still reeling from the Covid-19 pandemic.
As said by Ratcliffe:
“Financially … we’re in a bad place because it’s post covid so you don’t really need to shut down the industry, and it’s not great for British industry if we’re telling all our customers are that we cannot supply them.”
Ratcliffe said it was hard to predict how long the current situation would last, but predicted it would likely continue through the winter due to increased gas demand.
And he criticized the UK’s lack of gas storage compared to other European countries, saying it was “really a bit pathetic for a nation as important as the UK” with only 10 days of storage left.
When we had ‘Beast from the East’ we were within a day or two of running out of gas in the UK.
“If we had run out of gas it would have been a disaster for, you know, old people who couldn’t do home heating, for the industry that would have to shut down. But we were within days, and we made that point. took. “
UK industry leaders have been warning for days that factories could be forced to close unless the government provides support – with steel bodies saying they are on the verge of a full-blown crisis. puts jobs at risk.
The boom continues to push energy suppliers closer to the brink. Two more firms collapsed on Wednesday — Pure Planet, a renewable energy firm backed by an oil company bp, and Colorado Energy.
9am BST: IEA Monthly Oil Market Report
9.30am BST: Bank of England’s credit condition survey
9.30am BST: ONS Weekly economic activity and social change in the UK, real-time indicators
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