I have heard energy is generated from solar/wind/coal in the UK and this is where the most profit comes from but due to privatisation rules, companies cannot use this money to help consumer bills. Is this correct. I heard there is also a lot of energy piped in?
In: Economics
We are still reliant on gas to generate electricity and Russian sanctions have increased the price.
Cheaper sources of electricity cannot bring the cost down because in the UK the price of a unit of energy is decided by the highest cost producer.
If gas is the highest producer then all cheap energy from wind and solar must be sold at that price as well.
The only way we can reduce energy costs is to switch over from gas, which will take a lot of time and investment.
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