alt Hacker News> Britain paying highest electricity prices in the world for second year running
> Ed Miliband’s net zero targets are facing fresh scrutiny after Britain was found to be paying the highest electricity prices in the developed world.
> New data published on Tuesday showed the price paid by UK industry for power was 63pc higher than in France and 27pc higher than in Germany.
> Britain is also the second-most expensive country in the world for household electricity, with billpayers paying twice as much as those in the US.
https://www.yahoo.com/news/articles/britain-paying-highest-e...
Replies
This is Telegraph for you. The cost of electricity is not driven by green levies or net zero targets, but by gas prices, as gas is a backstop when all other sources are exhausted. Therefore electricity prices are pretty much tied to gas.
Electricity pricing in the UK is dictated largely by the price of Gas. This is a good video that goes into it: https://www.youtube.com/watch?v=IEnFmrgEbWo
This is of course linked to the UKs renewable rollout (and to do with detaips around the UKs energy markets leading to gas dictating the price for noe), but completely misses the fact that the UKs spending isn't just spending but investment.
Will be interesting to see in five years time looks like, we could well see a scenario where the UK has abundant cheap electricity being exported to the rest of Europe. Will be interesting to hear what the sceptics holding some American states fossil fuel based grids up as examples think then.
None of this of couse factors in the fact that fossil fuels cannot be sustained if we want a livable planet. Factoring that in, payimg energy bills three times as high would be a good investment, if it protects the world we depend on, in my book at least.
Are you arguing causality? Texas generates significant renewables, and has low electricity prices.
> Ed Milliband's net zero targets...
These net zero targets were actually introduced by the right wing Conservative party in 2019 under Teresa May and passed with broad support across parties.
Now the same party has collapsed in support (for reasons unrelated to this target, which remains broadly popular with voters) and attacks the targets they introduced.
Footing the technology development bills as a developed country should. Britain owes the world a lot in terms of fossil fuel contamination too.
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I'm sure there's an (un)healthy dose of degrowth to let them hit that 90% number too.
Yes. But these things can be orthogonal. Or actually brcause gas is expensive.
https://www.bbc.com/news/articles/crkep1vx3mro
The price for wholesale electricity is set by a bidding process, with each generating company saying what it would be willing to accept to produce a unit of electricity.
Once built, the cost of generating power from renewables is very low, so these typically come in with the cheapest bid. Nuclear might come next.
Gas generators often have the highest costs, because they have to buy gas to burn, as well as paying a "carbon price" - a charge for emissions.
The wholesale cost is set by the last unit of electricity needed to meet demand from consumers. This means that even if gas only generates 1% of power at a given time, gas will still set the wholesale price.