Renewables & cost implications

ElizabethAnderson

Hi. I just wondered if anyone has an answer to this. My cheap-fix dual energy plan with Scottish Power ends June 30th. Thanks to Martin's advice, I'm probably looking at slipping into the Standard Variable. However, when Scottish Power emailed their Fixed options (expensive @ £324 p/mth), I 'phoned Scottish Power to ask why the high cost when they boast that they are 100% renewable energy. I understand that all standing charges have increased but the call handler actually told me that 'gas is used in the operation of windfarms' . My husband couldn't believe that an Energy employee would claim this-does anyone have an explanation as to why the electricity from renewable resources is so expensive?

QrizB

Welcome to the forum.

ElizabethAnderson said:

I understand that all standing charges have increased but the call handler actually told me that 'gas is used in the operation of windfarms' . My husband couldn't believe that an Energy employee would claim this

Whoever you were speaking to was from the shallow end of the employee pool.

... does anyone have an explanation as to why the electricity from renewable resources is so expensive?

Yes. Renewable energy is sold at the same prices as fossil fuel energy.

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

pochase

The price for electricity from wind farms is also increasing the moment the gas price is going up.

There are only two "real green energy companies", Ecotricity and Greenenergy, who due to this fact don't fall under the CAP, and the energy prices are higher than the cap and can be increased whenever they feel the need.

So it is just the fact when the cost for energy created by gas increases also the price for all others go up.

QrizB

pochase said:

There are only two "real green energy companies", Ecotricity and Greenenergy, who due to this fact don't fall under the CAP, and the energy prices are higher than the cap and can be increased whenever they feel the need.

Three; the third is Green Energy UK. And you're right that all three are exempt from the Ofgem cap.

pochase

QrizB said:

pochase said:

There are only two "real green energy companies", Ecotricity and Greenenergy, who due to this fact don't fall under the CAP, and the energy prices are higher than the cap and can be increased whenever they feel the need.

Three; the third is Green Energy UK. And you're right that all three are exempt from the Ofgem cap.

Thanks for the correction. I already had Green Energy, the missing one is Good Energy.