Energy news in general

debitcardmayhem

Scot_39 said:

Getting back to energy

Sizewell C gets approval (£14+ bn) finally 

https://www.bbc.co.uk/news/articles/c4gr3nd5zy6o


But you have to wonder who briefs Reeves and whether they have heard of Hinkley C - an identical sister plant still currently under construction "this generation"

I wonder how much they will expect per GwH , and hopefully by then they will disconnect the cost of electricity to gas.

QrizB

debitcardmayhem said:

Scot_39 said:

Getting back to energy

Sizewell C gets approval (£14+ bn) finally 

https://www.bbc.co.uk/news/articles/c4gr3nd5zy6o


But you have to wonder who briefs Reeves and whether they have heard of Hinkley C - an identical sister plant still currently under construction "this generation"

I wonder how much they will expect per GwH

That's already been agreed.

£89.50/MWh in 2012 prices.

The BoE inflation calculator makes that to be £128.30/MWh in today's money.

MSE_ForumTeam5

We've removed some posts from this thread. A gentle reminder, please, to keep to the MoneySaving aspects of energy news in this thread, rather than politics and geopolitics.

mmmmikey

MSE_ForumTeam5 said:

We've removed some posts from this thread. A gentle reminder, please, to keep to the MoneySaving aspects of energy news in this thread, rather than politics and geopolitics.

This is a thread about energy in the news and in this case the news concerns a political decision which inevitably means there will be political discussion. Could I request that in the interests of balance you either allow that conversation to happen or delete the entire thread? Thanks.

EDIT: As an afterthought, can I add that this isn't intended as a challenge to your decision, it is more about seeking clarity. The whole board is riddled with debate about standing charges, the merits of green energy and the smart meters all of which are highly political in the nature. This is a thread specifically about news which by it's nature is often political. What I don't understand is why you allow political debate to dominate other threads but exclude it from a thread that by it's very nature is political. Surely it would be better to keep the debate in one place than anyone who doesn't wish to contribure doesn't need to?

debitcardmayhem

mmmmikey said:

MSE_ForumTeam5 said:

We've removed some posts from this thread. A gentle reminder, please, to keep to the MoneySaving aspects of energy news in this thread, rather than politics and geopolitics.

This is a thread about energy in the news and in this case the news concerns a political decision which inevitably means there will be political discussion. Could I request that in the interests of balance you either allow that conversation to happen or delete the entire thread? Thanks.

Oh that would be fair mmmmikey, not. So you have a post or two deleted , move on many of us have had this happen for various reasons, it’s subjective any way you look at if, sometimes people report threads as if they are the thought police, or because they did like what was said. 
No need to get over anxious😎

mmmmikey

debitcardmayhem said:

mmmmikey said:

MSE_ForumTeam5 said:

We've removed some posts from this thread. A gentle reminder, please, to keep to the MoneySaving aspects of energy news in this thread, rather than politics and geopolitics.

This is a thread about energy in the news and in this case the news concerns a political decision which inevitably means there will be political discussion. Could I request that in the interests of balance you either allow that conversation to happen or delete the entire thread? Thanks.

Oh that would be fair mmmmikey, not. So you have a post or two deleted , move on many of us have had this happen for various reasons, it’s subjective any way you look at if, sometimes people report threads as if they are the thought police, or because they did like what was said. 
No need to get over anxious😎

I'm not about to delete my account or lose any sleep over this, I just think this thread in particular presents a good opportunity to debate some of the broader issues that effect energy and money saving. I'd much rather discussion was concentrated in a single thread that anyone who doesn't want to get involved can easily avoid it. To be clear - there was no lack of balance in the threads that were removed - they were not just mine but included the responses to mine. Perhaps it would have been better to describe this as a lcak of consistency. To be fair being a moderator is probably about as thankful as being chief executive of Ofgem at times

Scot_39

When Hinkley C contract was signed there were 2 prices - one contingent on Sizewell C reducicg the cost by according to wiki from £92.50 /MWh to same £89.50.

I wonder if that lower price will now be honoured given the gap ?

The election and Labour's 10m delay only part of the total delays in securing the project. Ad we might yet see more court action from our European neighbours ala Hinkley C delays  (Austrian govt on state aid and Irish National Trust iirc).

Sounds expensive until you compare with first renewables auction at iirc upto £120/MWh for early delivery FOS wind. 

And although the lows were much lower than that the last auction saw Fixed OS rebound to £58.87 / MWh - a 57% increase on the lows from round 4 and c1.5GW FOS from previous round 4 renogetioted from £37.35 lows up to 54.23 under the iirc upto 25% permitted reduction scheme.

But these need the above c30% indexing too.

Sounds much better than nuclear you say - until you factor in the lack of reliability / consistency, the curtailment payments and the new grid integration costs and all too often these are very long distance transmission costs.

And worse still when realise UK market rates at start of this year - although up cf last summer - have averaged £42.80 wholesale for electric.  And that's up on last summer lows in the £25  range.

Highlighting the degree of (excuse the pun) gas lighting going on over the promises of cheaper power - at least in normal times as gas prices still not returned to pre Russia/Ukraine normality.

And why CfDs for wind - still only a fraction of our mix (less than total renewables) have been adding as much as c£30 wholesale to our Ofgem cap for 2700kWh over last year plus. As much as 1.3p/kWh wholesale in 25p retail last summer.


As to indexing, The cfd auction round administrators site faq

https://www.cfdallocationround.uk/faqs?type=&search=Inflation

"Administrative Strike Prices (ASPs) have been set based on independent evidence on generation costs. Considering recent market volatility, and following industry engagement, we undertook a detailed analysis of our cost assumptions and have made revisions to ensure the current macroeconomic environment is reflected in ASPs. 

The CfD scheme also provides generators with protection from inflation in the contract by indexing the strike price to the Consumer Price Index. This is an important protection for developers and remains one of the most generous indexation schemes when compared against other countries."

So from that sounds like the auction cap set by market and the indexing is CPI once awarded.

And note the bit in my bold highlight - some might argue allows lower base prices - others might argue as iirc sone contracts guarantee it for upto c35 years  - rip off Britain at its finest.

But just to muddy the waters - the LCCC - a DESNZ quango actually administering the contracts brings market back in to it - if part of contracts - are they in UK - I don't know 

https://www.lowcarboncontracts.uk/our-schemes/contracts-for-difference/strike-price-adjustments/

"Every year, changes are made to the Strike Prices in CfD contracts, starting from the relevant Indexation Anniversary. These adjustments ensure that the Strike Prices stay in line with changes in CPI inflation and electricity market charges (if they're part of the CfD contract)."

Scot_39

Just got round to reading Ofgems cap review breakdown update summary letter.
https://www.ofgem.gov.uk/sites/default/files/2025-05/Summary of changes to energy price cap 1 July to 30 September 2025_0.pdf

Lots of repackaging of cost components.

But one interesting one is the deletion of the £28 debt special (when introduced 4+ years ago during Covid iirc - supposedly temporary) adjustment allowance AA and the grouping together in with overall operating costs.
With a newly identifiable total debt related cost DRC set at £50 - ex vat.
Be interesting if they continue to publish that level in future letters.

Making clearer the total price most of us now have to pay for those in debt to suppliers.

In part govt policy, in part liberal society pressure on enforced prepay metering, suplliers delays - many again imposed - on dealing with those drifting into significant arrears.

And again begs question if taking from others bills - just like other policy costs like ECO4 when insulation aid schemes in past used to be from taxation - really fair to those struggling with their own bills.  I suspect I'll pay one way or the other but it might matter to many.

wrf12345

When I do my tax assessment, ISA income is not included in the tax calculation (as it is tax free), so be interesting to know if that ISA income is included in the 35k for WFP or not (I know the revenue probably get the info but probably on a different computer system)? Pensioners get the WFP because they are susceptible to flu etc, though you could argue giving them 1000mg of Vitamin C a day might save most of them from that and a whole load of money for the NHS, also they tend to be at home most of the day in winter whilst dustmen et al are out toiling. Moving all the Green taxes, etc to the gas unit rate is going to happen sooner or later, it is a compulsive thing for the Greenies.

Phones4Chris

Scot_39 said:

Phones4Chris said:

mmmmikey said

And those on a better Final Salary Pension (for which they paid their contributions) they will pay tax on the WFP, another fact I think you are forgetting. Let's leave it at that.

WFP wasn't taxable before and paid iirc per household.

Ah, you noticed the tax aspect. And that is also something that should have been done years ago.
The WFP always was split between the eligible members of the household and AIUI the new rules are household income of £35K, so partners of those paying high rate tax will not be able to have/keep the payment.