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
Solar/wind/gas/nuclear. No coal anymore.
We do import some energy but we also export energy, it depends on supply and demand for both us and neighbouring countries.
The companies COULD reduce consumer bills but when have you ever heard of a for profit company reducing prices? What incentive do they have to say “hey instead of paying ourselves bonuses this year we’ll reduce prices for the customers”?
We have a price cap on energy, which in theory should be the upper limit of what energy companies can charge. In reality almost all the companies just match their prices to the cap.
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