Despite a VAT cut, UK households face high electricity prices, ranking fourth highest in Europe, due to wholesale gas costs influenced by international conflicts and significant investment in the national grid for renewables.
The UK government's plan to de-link gas and electricity prices is a heavily diluted version of the more radical 'pot zero' proposal and will likely deliver only modest savings for consumers. While older wind and solar farms under the renewables obligation scheme receive around £200/MW/h compared to £91 for new projects, the reform only swaps the wholesale element to fixed-price contracts, not the legacy subsidy portion. Energy secretary Ed Miliband offered no bill reduction forecast, with savings dependent on take-up and likely to be modest under normal conditions.
Government has shaken up the way electricity is priced as British costs are among the highest in the worldElectricity generators threatened with higher windfall taxes in bid to ensure stable pricesThe second global energy crisis of this decade has reignited questions about Britain’s grid strategy, specifically: why does it continue to have one of the most expensive electricity markets in the world?Despite the growing role of domestically generated renewable power, electricity wholesale prices in the UK have more than doubled since the war in Iran triggered a global squeeze on seaborne gas shipments from the Gulf. Continue reading...
Government has shaken up the way electricity is priced as British costs are among the highest in the worldElectricity generators threatened with higher windfall taxes in bid to ensure stable pricesThe second global energy crisis of this decade has reignited questions about Britain’s grid strategy, specifically: why does it continue to have one of the most expensive electricity markets in the world?Despite the growing role of domestically generated renewable power, electricity wholesale prices in the UK have more than doubled since the war in Iran triggered a global squeeze on seaborne gas shipments from the Gulf. Continue reading...
