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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Electricity generated from renewable sources is a substitute for that generated from non-renewable sources.
So as the price of electricity generated from non-renewables goes up, that generated from renewables becomes more and more affordable as a substitute. That results in increased demand, and supply can’t ramp up instantly (i.e. building and deploying wind turbines, solar sites, etc) to meet that demand, so the producers put their prices up to a) discourage further growth in demand, b) generate capital for growing supply, and c) yes, cashing in whilst the price is high.
In the long run, a new equilibrium will be found: likely one where non-renewables are less in demand, and renewables are more in demand but that demand is adequately met by available supply most of the time.
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