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More increases in electricity bills?

"Analysts told the BBC that local distributors and suppliers are moving charges which were once part of a consumer's unit price for energy (which now has a tight upper limit on it) over to their standing charge. They are also increasing standing charges to the maximum level for each region, which means a big jump for some places."

https://www.bbc.co.uk/news/business-60878314

   - Andy.

Parents
  • it is amusing to note that some of the later wind farms, where there is an agreed strike price per unit, rather than a fixed  subsidy paid per kWhr over ther market rate, that now the strike price is below the wholesale market rate the wind farms are actually getting less money in than they would selling on the open market - but of course it cuts both ways- when they started generating they were in effect being paid over the odds, and a guaranteed income helps free up the private investors cash.  (link to that) (and as reported in the evening standard)

    However, I agree the majority  of the early contracts were arranged as simple subsidies, and we will be paying the more recent of those until the mid 2030s. However I think we have to look at that as more like R & D investment, as it has paid to develop the multi-megawatt turbines we have today, and that would not have been done without someone buying the little ones first.

    The fact that anyone can say 'Gigawatt wind farm" without anyone falling off their perch, and with a development time so short, is a remarkable engineering achievement.
    so much for looking forward 15 years, looking back consider that the UK generation stats show no wind generation worth counting in the national figures before 2006. link here Mind you at that point more electricity was still being generated by coal than by gas.  It's not that surprising it needed some incentive. However, I agree totally that now it  can safely be wound back. We just need to do the same for tidal and a few other things.

    Mike

Reply
  • it is amusing to note that some of the later wind farms, where there is an agreed strike price per unit, rather than a fixed  subsidy paid per kWhr over ther market rate, that now the strike price is below the wholesale market rate the wind farms are actually getting less money in than they would selling on the open market - but of course it cuts both ways- when they started generating they were in effect being paid over the odds, and a guaranteed income helps free up the private investors cash.  (link to that) (and as reported in the evening standard)

    However, I agree the majority  of the early contracts were arranged as simple subsidies, and we will be paying the more recent of those until the mid 2030s. However I think we have to look at that as more like R & D investment, as it has paid to develop the multi-megawatt turbines we have today, and that would not have been done without someone buying the little ones first.

    The fact that anyone can say 'Gigawatt wind farm" without anyone falling off their perch, and with a development time so short, is a remarkable engineering achievement.
    so much for looking forward 15 years, looking back consider that the UK generation stats show no wind generation worth counting in the national figures before 2006. link here Mind you at that point more electricity was still being generated by coal than by gas.  It's not that surprising it needed some incentive. However, I agree totally that now it  can safely be wound back. We just need to do the same for tidal and a few other things.

    Mike

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