Energy news in general

debitcardmayhem

From OFGEM

https://www.ofgem.gov.uk/press-release/ofgem-announces-major-review-how-costs-are-allocated-across-energy-system

and call for input
https://www.ofgem.gov.uk/call-for-input/energy-system-cost-allocation-and-recovery-review

the Grauniad article is more or less a rehashing the article posted in April.

Scot_39

So yet more official evidence of the great greenwashed promises of cheap green energy disappearing further into the future (if ever in many of our lifetimes).

That transition costs - coming at a faster pace because the UK has it's own unique EM 95% by 2030 targets - and those of past energy ministers that already has made our energy more expensive than almost any other comparable nation currently - is about to get even more expensive and so unaffordable for many - with Ofgem issuing yet another clear warning of far more expenses to come to our bills. 

(Just as they warned in the standing charge reviews for those who read them - that standing charges - raised £103 ex vat over 2 years to pay for current fixed network costs - were going to become even more significant - an even larger share of our bills).

Now its got to the stage when it is literally adding £bns pa to our annual costs (we hit £1bn curtailment last year according to The Telegraph and others - we had already hit iirc c£630m of that nearly two thirds of that in June this year - and remember NESO is forecasting they hope a peak of £8bn curtailment and balancing by 2030). But you only have to look at warnings on likes of EGL1, and 2 - behind parts of that - to realise that figure might not be the peak.

 

And we are now a long way from the pricing lows on renewables in particular that of FOS wind - up nearly 60% between AR6 and AR4 rounds.   With a 10.8% cap increase - and some predicting the discount on the cap to be far lower in Ar7 given developments like Orsted shelving 2.4 GW / Hornsea 4 project sold at the old £58.87 level (vs £73 cap)

The methodology, the green "orthodoxy" of unreliable renewables without storage - has gone unchallenged by any of the major parties and most of the mainstream media for far too long in the UK. 

As these costs become far clearer to the masses - that finally - I hope - now seems to be changing.

As this very public warning shot by the regulator makes clear. 

HillStreetBlues

The rush for "green" electric, but we can't store it all, never mind, the rush for electric cars, but we can't charge them all, never mind.

Scot_39

The_Green_Hornet said:

Shield poorer households from costs of clean energy plans, says Ofgem

Britain’s clean energy future risks creating “winners and losers” if lower-income households are not shielded from the costs added to energy bills to pay for it, the head of the energy regulator has said.

Jonathan Brearley, Ofgem’s chief executive, said a “systematic approach” to sharing the rising costs of the government’s green power ambitions was needed to avoid poorer households facing soaring monthly payments.

The regulator for Great Britain launched a root-and-branch review on Wednesday into how the costs of upgrading the energy networks can be recovered through home energy bills in a way that is fairer.

The review could include plans to cut standing charges for lower-income households while wealthier customers pay a higher cost for upgrading the energy system

Shield poorer households from costs of clean energy plans, says Ofgem | Ofgem | The Guardian

Anyone would think Brierley hadn't been in charge through at least the end of the TCR and its domestic implementation - you know the move of the £103 more onto electric SC reading that article - you know the major part of the reason standing charges more than doubled on electric between 2022 and July to Sep cap 2024.

You know the review that said the new charge was fairer - because low users werent paying enough to cover the fixed costs - and high users were paying too much.

The head of a market stability regulator since iirc 2019 - which not only let - but by its actions - or inactions - actually actively contributed to the collapse of 29 suppliers - large and small. Dont take my word for it - take the National Audit Office's

https://www.nao.org.uk/press-releases/the-energy-supplier-market/

Some highlights from that press release

"Ofgem operated what it termed a ‘low bar’ approach to licensing new suppliers"

"Ofgem did not consider what impact the price cap might have if there were sustained periods of price increases in the wholesale energy market"

And his reward for those failings on his watch - 5 further years on the quango gravy train - at our expense.

Chrysalis

I can see this effectively becoming the social adjustment on energy.  The zero SC idea will effectively be replaced by this.  However my curiosity is will it be implemented via special tariffs, meaning if you qualify, and want the discount you might be locked out of options on the market, or will it be a rebate akin to the WHD.

debitcardmayhem

Chrysalis said:

I can see this effectively becoming the social adjustment on energy.  The zero SC idea will effectively be replaced by this.  However my curiosity is will it be implemented via special tariffs, meaning if you qualify, and want the discount you might be locked out of options on the market, or will it be a rebate akin to the WHD.

Sadly that option won’t work, WHD is also built into the SC, so the 150 for that is added to SC at 37(if the changes to that are implemented this winter), i.e. the 150 is a net 113 and a cost to non WHD users  of 37.

pfpf

what constitutes a "poorer household"? i mean overall, not just in this example.
we are a 2 person household, albeit mortgage free, but our total household income before tax is under £25000.00

we pay full everything and receive zero benefits/discounts. i check 'entitledto' or whatever its called now and again and we are never entitled to anything.

i am sure some folk get what we get purely from benefits but of course i can't back that up with facts as i'm just rambling on a bit.

Chrysalis

pfpf said:

what constitutes a "poorer household"? i mean overall, not just in this example.
we are a 2 person household, albeit mortgage free, but our total household income before tax is under £25000.00

we pay full everything and receive zero benefits/discounts. i check 'entitledto' or whatever its called now and again and we are never entitled to anything.

i am sure some folk get what we get purely from benefits but of course i can't back that up with facts as i'm just rambling on a bit.

This we dont know yet, its just an idea at the moment.

MattMattMattUK

pfpf said:

what constitutes a "poorer household"?

We do not know yet, but likely something south of £12-15k income would be my estimate.

pfpf said:

i mean overall, not just in this example.
we are a 2 person household, albeit mortgage free, but our total household income before tax is under £25000.00

You have an income after hosing costs which is roughly in line with the household median. 

pfpf said:

we pay full everything and receive zero benefits/discounts. i check 'entitledto' or whatever its called now and again and we are never entitled to anything.

With an income of that level and a mortgage free home I would have been very surprised if you had been.

pfpf said:

i am sure some folk get what we get purely from benefits but of course i can't back that up with facts as i'm just rambling on a bit.

For non-retired households it is a few tens of thousands, if one includes pensioner households then it is in the millions. 

stripling

er @MattMattMattUK can you qualify your last statement - 'millions of retired households get £25,000 worth of benefits' ? How? Where's your evidence please?