What is going on with the website and the elctricity price?

  • 26 September 2021
  • 7 replies
  • 73 views

I noticed on my latest bill that the electricity price is going up by 22.5% on the 3rd October, why is this? I thought the problem was with the wholesale gas price and our green electricity isn’t affected by that as no gas should be used in wind turbines.  One reason for going for green energy is the separation from world energy prices. Don’t you have contracts with the suppliers?

The website is also not showing the variable rates, whenever I go through the quoting process it only offer an outrageously expensive fixed rate, where is the transparency? 


7 replies

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As there’s no direct cable reaching from wind farms etc straight into homes, all the electricity comes from the grid, just like every other kind of electricity. Prices are negotiated to buy that from the grid and those prices rise and fall with supply and demand changes.

 

 

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@Mystified of Dorset

If only it were so. (The wind)

You don’t have to choose the fix which is very high because energy prices have rocketed.

And count yourself lucky if it’s only 22.5%

I do agree that the omission of a mention of the variable tariff is upsetting.

https://grid.iamkate.com/

here’s a snapshot from today, click on the images for more clarity.

 

This is all very interesting but I don’t understand why a supplier of green energy is still subject to price variations in gas prices, we can all see that up to 50% of the total electricity is generated by gas?  With the risks built in to the Ofgem price cap it seems irresponsible not to contract directly with green suppliers for the energy.  

The companies that have failed are also irresponsible for not hedging their risk on their fixed tariffs.

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@Mystified of Dorset

You may have heard about the fire at the electricity interconnector that brings the electric from France. This resulted in fears that the electricity supply would suffer, which brought about an increase in prices. The gas supply although not directly affected was then utilized by the gas powered power stations to make up any shortfall, this then resulted in less gas available for the consumer, which coupled by the reduced supplies from Russia resulted in more demand and higher prices. The whole thing is a vicious cycle of supply and demand affecting prices

Yes I had heard about the interconnector fire, however this was only recently and certainly after the price rise announcement.  This may prompt a small panic spike in the price but a 1GW drop in capacity shouldn’t make a significant long term difference to supply or price, after all there was planned outages for other interconnectors so there must be spare capacity.  It is disappointing to see that due to more management and planning at National Grid it will take 6 months to get it back on line; does no one look at risks and hold parts for this or other interconnectors if they are so critical to the stability of supply and prices.   

We have been told for years that the UK isn’t dependent on Russian gas supplies and since there isn’t a significant spot market in LNG, most cargos are under supply contracts that I would hope have price control mechanisms.  Perhaps the Russian action proves the American point about Europe becoming to dependent on Russian gas and the Nord Stream 2 pipeline shouldn’t be started up for a while to teach Russia a lesson.

If all the UK based wind and solar operators are making lots of extra money from the higher electricity price perhaps they can use it to refund the tax payer for the subsidies they have been receiving.

If Pure Planet is buying our electricity in the open market rather than through direct deals with the green generators how do we know it is as green as they say?

 

If Pure Planet is buying our electricity in the open market rather than through direct deals with the green generators how do we know it is as green as they say?

Every megawatt hour of renewable energy Pure Planet buys, regardless of whom it comes from has to be backed by one of these:
Renewable Energy Guarantees of Origin (REGO) | Ofgem

When Pure Planet, or any other supplier, says ‘our energy mix is made up of…..’ those certificates are the proof of the renewable part. 

 

Thanks @Gwyndy, good to know that. 

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