Friday, 6 April 2012

What happened to the laws of mathematics?

Following sharp increases announced to the retail prices of fuel at the pump and gas cylinders Government has announced that

"despite the increase in oil prices, it will absorb increases in energy costs to keep electricity prices stable."
What happened to the laws of mathematics?  If government had to cut forty million euro from its recurrent expenditure to deliver what the EU is demanding according to the fiscal pact, how can it now absorb such additional expenses to keep utility rates stable?

Two possibilities come to mind:

  • either the price increase of fuel and gas is subsidising the increased costs of electricity ( which government has denied).
  • what government is absorbing on its own bills on this side of the elections, will as happened  in 2008, be more than undone on the other side of the coming elections.
Take your choice!

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