Currently, the overall price is set by the most expensive source of power, which is usually gas power plants. This has led to a surge in electricity market prices across Europe, but particularly in countries such as the UK that rely on gas.
The plans to increase the generator levy – which applies to nuclear, biomass and renewable energy projects built before 2017 – will be used to raise Treasury funds to help shield consumer energy bills in the short-term while the government consults on long-term plans to reform the wholesale market.
The government is also expected to consult on plans to shift older, low-carbon projects subsidised by the government’s renewables obligation scheme on to the newer set-price contracts, which provide electricity at a guaranteed price.
So, the older stuff gets RoCs. If the ‘leccie price goes over the RoC guarantee then the generators get to keep the extra. The newer stuff is on CfDs, when ‘leccie goes over that price then generators hand back the excess.
If we move all the RoCs to CfDs – and you can bet there will have to be compensation payments – then the ‘leccie price is that permanently high CfD price. Sure, some of it might be from general taxation, some hidden in the system costs bit, but it’s still there and still to be paid.
It’s going to make much less difference then many seem to think.
Doubt it’s meant to make a difference, or make the costs clearer.
The “generator levy” is of course a windfall tax at I believe 45%.
Drill baby, drill. Trump was right.
Drilling, fracking, nukes and getting rid of unreliables. That’s what will make ‘leccie cheaper.
Getting rid of Milicunt is the obvious first step.
The usual LIE.
The gas plants are not the most expensive – they are (slightly less than) HALF the average price.
A majority of the *reported* cost is the carbon tax that Red Ed has applied to make them SEEM more expensive. Even his DESNZ says CCGT costs £54/Mwh vs Offshore Windof £113/Mwh, so he adds a carbon tax of £60/Mwh to distort the figures
The wholesale price is calculated every 30 minutes and set by the price of the last to join the grid which is also the highest price – which is why it is last to join the grid.
Since gas is always present, it usually sets the price. But if gas sets the price at £71 and let’s say wind is offered at £40, it will nevertheless get the strike price according to the CfD – latest is £128. So the wholesale price of gas will be £71 – set by gas but NESO (grid operator) will pay wind an extra £57 (£128 – £71 = £57) and that £57 is passed on to consumers via retail prices.
It is disingenuous to say that gas is the most expensive when all the costs of wind/solar are not included.
OK, so it’s even worse than I said – there is not one massive cheat but two massive cheats to make us consumers pay more to Dale Vince the mega-donor to Labour and other “Green” rippers-off.
Paul Burgess on the real reasons we are paying too much for juice:
https://www.youtube.com/watch?v=MkhLbT1NC-s&t=400s
It’s going to be financially beneficial to install a gas-powered generator at home.
reform the wholesale market
“Hey, let’s screw up the wholesale market, too!”
You have to have a short memory to be a central planner, so you can forget that it was you who caused the trouble in the first place and believe your next move will be successful.
Labour MPs are biomass.
And biomassive…
He’s a big man, but he’s out of shape
He deserves more than a slap across the chops.
With me its a full time job. Now behave yourself.
Just imagine what it will be like if Moron Millicrap takes over when Know Nothing Starmer finally gets his P45.
Mind you, none of the alternatives seem to be much better.
Miliband would probably be opposed by the GMB and the RMT – and possibly Unite. These unions are sceptical of net zero – “decarbonisation by deindustrialisation” – while the constituency parties are strongly for it. Moreover, Miliband has lost before, and he is a PR nightmare (see below).
Currently, Rayner is a liability given the investigation into her tax affairs, but she’s a gobby working class woman – which plays well with many union and constituency activists. She’d like to make history as Labour’s first female PM, even if that meant risking being the last Labour PM ever…
At this remote stage…my guess is that Miliband will not enter the contest. He sees himself as a “man of destiny” and his focus is on net zero. Would he want to risk being the PM that took Labour to its electoral annihilation by the Greens and Reform, if that meant abandoning critical oversight of his pet project? Or would he prefer a couple of years as PM and then posing as an elder statesman?
So, given questions about Miliband and Rayner I wonder if some ‘caretaker’, safe-pair-of-hands, compromise candidate might not emerge…
That said, Miliband and Rayner are essentially Marxists – Miliband absorbed Marxism with his mother’s milk – but Rayner strikes me as more pragmatic.
I see a lot of informed speculation that Miliband wants to be chancellor because he can do more for net zero in that role, although Streeting is rumoured to have offered that job to Mrs Balls.
…
We laugh at the faux pas of the Ancients, yet we are just like them.
Who’s “we”, paleface?
I’m justified, and I’m ancient. And I drive an ice cream van.
I’m palefaced and ancient but I don’t drive an ice-cream van; I walk (the “enviromentalist” would-be-autocrats haven’t condemned walking *yet* although it does cause us to emit CO2).
The ice-cream van is a “popular music” reference…
Thanks, Norman. That reference had passed me by!
Steve, stop putting songs in my head. Fine, I will admit you have good taste and I like KLF 🙂
Indeed. Human nature remains constant: only socialists imagine it can be changed.
So the Fabians were enthusiasts for Eugenics
Good point: indeed they were.
I favour negative eugenics – gently discouraging degenerates from breeding, immigration control, and banning of first cousin marriage…
As long as you focus on “gently”
Indeed. Though I favour enforced sterilisation of all illegals in order to pour encourager les autres.
Gelding, you mean?
Pendantry alert: pour in this context means “in order to”.
Thanks