My UK energy provider says my electricity is produced with 100% renewables, so I presume water, wind, solar. So why am I affected by such big increases in electricity charges (price per kWh)?
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Because if each energy could set their own prices, all parties would lose out. All the 9subsidised) investments into green energy need to be paid back at least in kind, if not directly. All the kit they have installed to produce energy for marginal running/maintenance costs could see some choosing to risk future upgrades/replacements against a shorter term gain for their investors. So the rule is whether you’re generating your kW by nuclear, wind, air, oil, hamsters on wheels, hydro storage (only joking, that actually works by accepting generational overage at a lower cost, to sell it back later, just like end customers on economy 7 and similar).is that it’s charged at the same prevailing rate as oil/gas generation.
Right now, that seems an unfortunately dumb decision (maybe the price should be capped for the non-fossil options) but it means a lot of money is going into the renewables sector, to be invested in infrastructure, in research and development, and even in them putting some money in the bank so they can survive other glitches (remember last year when the crude oil price went negative ? That’d be… interesting if it had been so bad it made it’s way up to the refinery and out of their doors into power stations).and those newer green energy projects were getting no income for a while, yet compelled to carry on rolling out more capacity.
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