UK jacks up energy prices – because renewable costs have increased – a tax increase by any other name. Not from natural gas, but from the soaring costs of renewable electricity - works like Obamacare!

From a British Gas email received today:

The price cap is set by the socialist bureaucrats in the regulator, Ofgem – and is the maximum chargeable for utility bills. Guess what happens when the price cap changes?

It comes hot on the heels of the most expensive price paid for offshore wind of around 100 bucks (82 pounds) in the latest “auction” of UK offshore wind.

So, in October 2024, prices go up 9.5% - a lot more than general inflation rate, prices the increase by a further3.9% in January 2025., for a total increase of 12.3% in the next five months.

These are a little way out into the future, especially the one in January 2025. How can the regulator possibly know what the price of energy will be that far in the future?

Easy, it reflects the locked in price from renewable energy sources set for years if not decades to come. It can’t be because f the price of natural gas or oil.

Here are the claimed UK electricity sources:

Electricity Generation Sources UK (2024) (energyguide.org.uk)

1         Renewable Electricity Sources – 43%

2         Nuclear Energy Electricity Generation – 16%

3         Fossil Fuel Electricity Generation – 35%

From here: Energy in the United Kingdom - Wikipedia

“The electricity sector's grid supply for the United Kingdom in 2023 came from 33% fossil fuel power (almost all from natural gas), 50.3% zero-carbon power (including 14.2% nuclear power and 36.1% from wind, solar and hydroelectricity), 5% from biomass, 10.7% imports, and 1% from storage.^[8]

“In 2022, the United Kingdom's total energy supply (TES) was primarily composed of natural gas, contributing 39.4%, followed by oil at 34.8%, nuclear power at 8.1%, and coal at 3.2%. Biofuels and waste contribute 8.9%, while other renewable sources such as wind, solar, and hydro collectively accounted for 5.6% of the energy mix.^[“

Quite the difference between the “electricity only” generation in 2023 and “total energy” supplied in 2022.

Statista says that: “Households have consistently ranked as the largest electricity final users in the country. In 2022, households in the UK consumed 96 terawatt-hours of electricity, or roughly 35 percent of the total consumption.”

The UK has 28.5 million households, according to Statista, the average UK household uses around 3,500 kWh per annum according to the energy regulator Ofgem, as reported by Ovo Energy:

Average Electricity Usage in the UK: How Many kWh Does Your Home Use? | OVO Energy

From here: What is the average energy bill in the UK? - Finder UK the average UK household energy bill in 2023 was £2,084 a year

Jacking prices by 12.3% increases the energy bill by 256 pounds a year times 28.5 million households  - a transfer f wealth of 7.3 billion pounds to the (mostly renewable energy) power companies ad a concomitant increase in energy poverty amongst the poorest households.

Sn that Ofgem cap applies to total energy bills – not the individual components of gas and electricity. Gas prices are static - and so the electricity component (call it half the energy bill) is actually gg t increase by tice the 12.3%.

So, the price of household electricity (not gas) will probably increase from 22.407p per kWh to around 28 pence. This is a backdoor regressive tax increase on UK households.

Five-year chart of natural gas for delivery in October 2024.

Same price as prior to the war between Russia and Ukraine.

To cap (sic) it all, the 12.3% increase in energy bills by January 2025 will also be subjected to an obligatory 5% value added tax.

Onwards!!!

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