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)?
In: 314
Everyone talking about how it isn’t 100% renewable isn’t necessarily wrong, but that’s not what’s happening.
Say i buy a car for $5000. Then i go to sell it later and one person offers me $6,000 and another offers me $10,000, I’m taking the $10,000. What the car cost me is irrelevant. I’m taking the most money I can get for it, I’m not stupid.
Going back to energy, the cost of something is determined by supply and demand. It’s determined by what people are willing to pay for it, it’s not determined by the cost to produce. Businesses sell their products for the highest price they can, not based on their cost.
Latest Answers