Energy Prices

[whiteowl]

My energy contract finishes in August so I've been look around for a new one.

 

Have energy prices shot up in the last year or so?

Every quote I'm getting is about £20-30 a month more than I've been paying for the last year!

 

I expect some increases but 25-30% seems excessive

[S1 1DJ]

Same here, got my cheapest deal ever with E.ON all on dual fuel and nowhere near beating this year's prices.

[Thirsty Relic]

Here's the reason:

https://www.dailymail.co.uk/news/article-9846795/More-half-families-warned-expect-150-increase-energy-price-cap-raised.html

 

[AKAMD]

All the more reason to re-nationalise them!

[apelike]

40 minutes ago, AKAMD said:

All the more reason to re-nationalise them!

If only it was that simple.

 

Re-nationalisation of energy companies will not stop the increase in wholesale prices of imported energy from Europe which is a big factor in the increases. Someone will still have to pay for the extra infrastructure for wind and solar energy to cope with growing demand and for the smart meter rollout. Money will also have to be spent on ending companies contracts and providing compensation for re-nationalisation. 

 

The best way to reduce the cost is for the individual to reduce consumption.

[Thirsty Relic]

2 minutes ago, apelike said:

The best way to reduce the cost is for the individual to reduce consumption.

I think the best way to cut costs is to stop the rollout of smart meters.  We are told we need them to save money by knowing what each of our appliances costs, but in reality we still need to keep warm, so having a meter does very very little in cutting consumption.  It does mean , however, that prices have to rise to pay for the advertising for them, for the gangs of sales people contracted to knock on doors pressing people to have them (e.g. British Gas using MPE marketing), and for the expense and installation costs of these "smart" meters.

[Gormenghast]

How much of the increase in prices is due to subsidies for renewable energy projects?

[apelike]

37 minutes ago, Gormenghast said:

How much of the increase in prices is due to subsidies for renewable energy projects?

Not sure exactly but from what I have read the past subsidies have led to a significant increase in renewables which has significantly lowered the cost of building them and has lead to lower subsidies. They are now a very cost effective way of producing electricity.

 

Quote from LSE article:

 

"In the UK, subsidies have led to a significant increase in the deployment of renewables. This in turn has led to a rapid decrease of the cost of some of these technologies. Notably, offshore wind projects commissioned in 2022/23 will sell their electricity at £57.50/ megawatt hour (MWh). This is cheaper than the average cost of generating electricity from gas, and well below the price of long-term contracts for new nuclear power, which is £92.50/MWh. Recent analysis backed the UK government’s view that further subsidies should be time-bound and removed once the relevant obstacles and market failures have been overcome. This will include phasing out fossil fuel subsidies, as recommended by the International Monetary Fund (IMF)."

 

Link: https://www.lse.ac.uk/granthaminstitute/explainers/do-renewable-energy-technologies-need-government-subsidies/

 

The above quote is right at the bottom of that link.

 

 

 

Edited July 31, 2021 by apelike

[whiteowl]

3 hours ago, Thirsty Relic said:

Here's the reason:

https://www.dailymail.co.uk/news/article-9846795/More-half-families-warned-expect-150-increase-energy-price-cap-raised.html

 

Thanks Thirsty Relic, that looks to be the case.

 

Do they think people have an endless pot of money? If I'm paying more for gas/electric/etc then I'm spending less in other areas so other businesses will suffer.

[iansheff]

I got moved to EDF when Green Network Energy went under, I have had several emails from them saying how much energy prices have gone up and offering me a 2 year fixed deal. Also  they are offering me £50 to have a smart meter, not that I want one.