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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Your provider is only a billing company – it doesn’t matter who the provider is. It could be eon or another major company. The larger companies (like Eon) are divided up into different divisions. They have a power generating division, who sell electricity on the open wholesale market, and they have a billing division (which is who you deal with) who buy electricity from the wholesale market and charge you for it. If you have a “renewable / green” tariff then they attempt to ensure that when they purchase electricity that it comes from generating companies that produce by green means. That doesn’t affect the wholesale price.
So, the price comes down to the cost of wholesale electricity, which at the moment is extremely expensive. That’s caused in part by limited supplies of gas and oil from Russia and the rest of the world, as well as various green taxes, lack of generating capacity within the UK (we import power from France via undersea cables), and the high cost of “green” power generation.
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