EON price increases

AW_MW

Given EON say they provide electricity from 100% renewable energy sources, and are therefore not reliant on electricity produced from gas fired generation plant, why are they increasing their electricity prices in line with the latest price caps.  I understood that OFGEM had increased the price cap for both gas and electricity due to the current surge in the cost of gas.  Surely only suppliers sourcing their electricity from conventional gas fired generation plant should be increasing their prices.  With the aspiration to use more renewable energy, there should be a mechanism to keep the price of renewable energy lower than fossil fuel energy.

ispookie666

The 100% renewable tariffs are hedged, so that in the event of low wind and cloudy days the consumers can still be supplied. Depending on whom you believe - Renewables have the highest cost per MWh

QrizB

Welcome to the forum.

AW_MW said:

Given EON say they provide electricity from 100% renewable energy sources, and are therefore not reliant on electricity produced from gas fired generation plant, why are they increasing their electricity prices in line with the latest price caps.

Here is an article at The Conversation that explains it in more detail than I can:

https://theconversation.com/renewables-are-cheaper-than-ever-so-why-are-household-energy-bills-only-going-up-174795

If you want to benefit from cheap renewable energy prices in a high energy price world, you'll need to take action yourself.

For example, buy a stake in Ripple:

https://rippleenergy.com/

https://blog.rippleenergy.com/news/the-wind-farm-that-protects-you-from-energy-price-spikes/