As we have been pointing out here at the Daily Sceptic, the Labour Government made a rod for its own back by coming to power on promises about 'lower bills'. Put simply, it is arithmetically impossible for Ed Miliband’s favoured policies to produce lower bills, partly because they grant to renewable energy generators fixed prices that are higher than the cost of power from gas, and partly because the costs of stabilising the grid that is increasingly dominated by unreliable renewables cause ever increasing prices. Like sunlight at midnight and wind in a dunkelflaute, basic arithmetic is a rare commodity in green Westminster. But this week, an injection of elementary maths was delivered right to the heart of SW1A. It was an extremely clear lesson. But were MPs listening?
In a House of Commons Energy Security and Net Zero Committee meeting on Wednesday inquiring into the cost of energy, MPs heard from representatives of the leading energy retailers. The most brutal blow to Ed Miliband’s torrent of fibs came from CEO of Eon Energy Chris Norbury:
Some of the modelling we have suggests that we could get to a position by 2030 where, if the wholesale price was zero, bills would still be the same as they are today because of the increase in those non-commodity costs.
Rachel Fletcher, Director of Regulation and Economics at Octopus Energy concurred: “If we continue on the path that we’re on right now, in all likelihood electricity prices for a typical customer are
Discussion
Comments
This week across the site:
To join in with the discussion please make a donation to the Daily Sceptic.
Profanity and abuse will be removed and may lead to a permanent ban.
What people often miss, is that the mega-expensive costs of the “green” infrastructure only cover the first generation equipment. In 20 years, all of this money would need to be found again, to replace the worn out stuff. By the way, it is not recyclable, so we will be burying hundreds of thousands of tons of toxic crap – and then after 20 more years…..
I have lived here for 27 yrs. I cannot understand how in the he.. people put up with the insanity called “government”. Folks it is your money that fuels the “government”. Figure out what you want to do about tgat and then take the plunge.
It remains fantastic that despite the terrible state of the economy and how broke everyone is, that reality has yet to move Mad Ed and co one inch…..
despite all that dumping Mad ed and Co would do for everyone…even this shiite show of a government.
Any business which cannot plan or react to vary its output to match supply with demand, which has intermittent revenue stream which at best in total it will only receive for 30% of its financial year, is not viable and cannot survive in a free market.
Therefore it can only survive on perpetual taxpayer handouts, and by Government intervention to fix its prices above market rates.
As these businesses expand and more and more of these businesses enter the market, the level of taxpayer funding and overpricing can on,y increase to sustain them.
One thing missing from this – the energy companies are owed £4.43bn by customers already and with prices due to go up again in January as normal this will only get worse. transmissionofflame is on the right lines with the removal of these costs from the tariffs charged to customers to the general revenue is no doubt what the energy companies are saying behind closed doors. This is how some countries manage to make their energy look cheaper when realistically it is not – think Germany. The problem is the money is still taken out of the economy somewhere and as Germany is finding with its economy in a death spiral that money gets harder to find.
“ the removal of these costs from the tariffs charged to customers to the general revenue is no doubt what the energy companies are saying behind closed doors”
The implication has to be exactly that – if they stick to the lie that renewables are going to be cheaper and net zero is the way to go, the only way to appear to lower costs to consumers is by taking the money from somewhere else and hiding the cost. I don’t know why the energy firms are that bothered though – they have a captive market. Are they sad because consumers don’t like them? Diddums.
Clean power is dirty lies. A succession of misgovernments have committed energy treason against the British people. It really is that simple.
This last week according to National Grid live-
The dirty carbon polluting stuff-
Gas – 57%
Biomass 7% (ie burning trees see Drax- carbon neutral lol).
Clean green stuff-
Wind 11%
Sunshine 3%
HEP 2%
Nuclear 11%
Remainder imported
Weird that very often the sun don’t shine and the wind don’t blow in winter innit?
So what does the Green Blob actually propose when the dirty stuff goes – and that often produces about 65% of power in winter.
I’ve heard giant batteries and flywheels – good luck
Conversely just cut demand…
.
And the ‘giant batteries and flywheels’ aren’t an Energy Source, the Energy needs to be stored first, from Solar and Wind power. Otherwise, it’s pointless; it won’t be Green.
For years, grid bosses have been talking about load shedding, i.e. rationing.
The government calls it “load shedding” in South Africa, it’s actually a power cut to consumers. An involuntary power cut!
Smart meters have built in cut off or can dynamically ration through price. Not a lot of people know that!
Just cut demand – you mean no data centres, no phones, no wifi, no tv…?
My prediction is that they will try to hide the costs in general taxation through more subsidies to consumers and suppliers.
They are already doing that.