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Why are UK electricity bills so expensive?

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21–30 of 353 posts

Re: Why are UK electricity bills so expensive?

#21
> The UK has achieved the fastest rate of grid decarbonisation among advanced economies. A lot of this progress occurred when renewables were still expensive, so we are stuck with a cost hangover. Luckily, renewables are getting much cheaper, so the tradeoffs in future policy are very different.

A silver lining at least. I’m old, so won’t see the benefits of this I’m sure, but it’s still nice to know we’ve made some tangible progress toward a cleaner future

Re: Why are UK electricity bills so expensive?

#22
Commercial energy broker here - the only 2 'real' costs in your price are the wholesale and supplier costs. Choose suppliers that offer a fully-fixed electricity contract, so that made up variable costs such as distribution, network, etc are all factored into the unit rate that the supplier charges you for your contract. Avoid smart meters at all costs. Renewable / green contracts are always a lot more expensive than standard contracts. I help businesses across the UK get the lowest rates in the market, if it's something you need help with reach out to me - yousaveutilities.co.uk

Re: Why are UK electricity bills so expensive?

#23
post #6

Third option not discussed: have the military leverage its existing nuclear reactor competency to build a fleet of nationalized nuclear power generation stations. I'm not saying that they should tile the island with submarine-scale reactors, I'm saying that their supply chain for building those knows how to build nuclear power stations. The only thing which makes this prospect expensive, is the lack of political will…

There is a bit of overlap but military reactors designed for propulsion have little in common with civilian reactors designed for efficient power production. They are optimized for entirely different priorities.

Re: Why are UK electricity bills so expensive?

#24

Some of these are "costs" which reduce costs elsewhere. Smart meters for example, though rollout has hit snags and they've become targets for weird conspiracy theories, they are basically designed to give better real time info on electricity demand which helps with managing the grid. This in theory should save money elsewhere. Similarly for CfD. Yes the government may on net be paying a subsidy to get wind power buil…

But why do you need smart meters at the level of individual houses? Wouldn't putting them on substations get the same benefit with much less cost?

Re: Why are UK electricity bills so expensive?

#25
post #11

Earlier quoted context omitted.

The cost of bailing out owners of burnt down homes in Paradise, CA worth $0 for $700k is rolled into every San Francisco PG&E bill.

I think that's a bit of color on that, since those homes weren't worth $0 until PG&E caused a fire that burnt them down by neglecting required maintenance.

Did PG&E cause the fire? They are legally obligated to serve those customers. It would be safer if they simply didn’t do that no?

Wait till you read the facts behind this $41m bailout for 20 homes in one of the richest burbs of LA: https://www.latimes.com/california/story/2024-10-29/feds-to-...

You could argue that nobody should be living in a place guaranteed to be destroyed, whether by landslides or wildfires, but the government tried that in Palos Verdes and got sued, lost, and now is bailing out those homeowners to get out of services obligations all the same.

Suffice it to say, you have bought into a very well marketed point of view. There was a lot of ceremony to enact procedural blame on PG&E, but it obscures all the far simpler solutions, that are far more just. People in San Francisco are paying higher rates, no? So PG&E may have been responsible for something somewhere, but the liability is being borne functionally by taxpayers, via a compulsory payment for energy, to balance the books on assholes living in places at risk of wildfires with overinflated asset values. Ultimately, the government here has decided that you should get government-guaranteed-risk-free market rate returns on owner occupied real estate.

Re: Why are UK electricity bills so expensive?

#26
post #20
post #14

Earlier quoted context omitted.

In a way it's subsidizing people in the country side.

No, it's making people whole for real monetary and property damages caused by PG&E's negligence. It's the settlement of a lawsuit, because PG&E was negligent and caused damage. Whether those people rebuild in Paradise, CA or move somewhere else with the money they received from the settlement is an entirely different proposition. This is not "subsidizing people in the country side". PG&E fucked up and now they have t…

I am actually not saying PGE shouldn't have to pay etc. But this dynamic is part of being a country. In some ways, it's similar to the insurance industry where we get a pool of very healthy or young and sick or old people.

What PGE did was terrible, but also there's a lot to blame on CA directly too.

Re: Why are UK electricity bills so expensive?

#27
post #15

...because houses are made of cardboard and use electricity for heating.

I'm not sure where you've got this idea from. Even "new builds" in the UK, with there questionable building methods (which you may be referring to?) are mostly insulation and incredibly efficient to heat.

The new builds are made of brick and block, and are indeed insulated really well. It's the millions of older houses, particularly Victorian ones, that are made of brick, are not usually insulated well, and are often intentionally draughty.

Re: Why are UK electricity bills so expensive?

#28

29p / kWh doesn't hold a candle to PG&E costs in the San Francisco Bay Area. It's ironic that it's quite a bit cheaper to use natural gas here, since we're supposed to convert to electricity to save the planet.

I sometimes catch myself thinking about whether it’s worth collecting wood by the road to burn as a way to heat the house.

Some people on craigslist sometimes are giving away wood for free (you just need to arrange transport).

So yes, in some ways, it'd be whole lot cheaper, and nostalgic too.

Re: Why are UK electricity bills so expensive?

#29

Commercial energy broker here - the only 2 'real' costs in your price are the wholesale and supplier costs. Choose suppliers that offer a fully-fixed electricity contract, so that made up variable costs such as distribution, network, etc are all factored into the unit rate that the supplier charges you for your contract. Avoid smart meters at all costs. Renewable / green contracts are always a lot more expensive than…

What's the reason to avoid smart meters?

Re: Why are UK electricity bills so expensive?

#30

Some of these are "costs" which reduce costs elsewhere. Smart meters for example, though rollout has hit snags and they've become targets for weird conspiracy theories, they are basically designed to give better real time info on electricity demand which helps with managing the grid. This in theory should save money elsewhere. Similarly for CfD. Yes the government may on net be paying a subsidy to get wind power buil…

But why do you need smart meters at the level of individual houses? Wouldn't putting them on substations get the same benefit with much less cost?

Yes, but those don't help manipulate consumer behavior and awareness.
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