Eon Next - 100% Renewable Energy

[Deleted User]

Even still - if a wind farm can sell their output to someone else at a higher rate, why should they sell it for less to E.ON just because of your tariff?

Cost of production sets a minimum possible price, not the actual selling price.

vincent64

mini_pea said:

I am with the OP on this, if they (eon) are telling the customer its 100% renewable then the cost of what you are buying should not be coupled to international issues (Russia).

At best Eon are profiteering off the current situation. At worst the published marketing material is a lie and they should be held accountable for what they are telling people!.

I agree it's all bull that they spout. They should be held accountable.

[Deleted User]

vincent64 said:

mini_pea said:

I am with the OP on this, if they (eon) are telling the customer its 100% renewable then the cost of what you are buying should not be coupled to international issues (Russia).

At best Eon are profiteering off the current situation. At worst the published marketing material is a lie and they should be held accountable for what they are telling people!.

I agree it's all bull that they spout. They should be held accountable.

Accountable in what way? The use of REGOs is permitted, and encouraged, by Ofgem. There are only 3 suppliers who source all their energy from renewable sources (Ecotricity; Good Energy and Green Energy UK) and they are exempt from the Ofgem Cap.

What is the energy price cap? 

The energy price cap was introduced in 2019  to protect customers who do not switch, as some big suppliers were found to be overcharging loyal customers. It’s a maximum figure that applies to energy suppliers’ default tariffs, set by Ofgem based on its calculations of the costs of supplying energy. It is assessed and set every six months, though following yesterday’s announcement this may be changing. 

Does it affect Good Energy customers? 

Good Energy was one of three suppliers granted a ‘derogation’, or exemption from the price cap, because we support renewables above and beyond other suppliers. You can read more about our exemption here. This means that customers on our standard SVT tariff are not affected by the price cap. Customers on fixed tariffs are also not covered by the cap because the price cap only applies to suppliers’ default tariffs. Their prices are set until their fixed periods end, and if they do not actively chose another tariff their prices are covered by the price cap. For all of our customers, we always set a fair price which is reflective of our costs. 

jimjames

Astria said:

mini_pea said:

 the cost of what you are buying should not be coupled to international issues (Russia).

Imports from Russia made up less than 4% of total UK gas supply last year, so that will have a very minimal effect on the overall gas market price.

Except it won't. Just because we import little Russian gas doesn't mean we're immune from market prices. If Russia cut off supplies to Europe then those will need to be bought from elsewhere which will drive up worldwide prices which impacts the gas we buy. If you could sell your gas for £300 a unit why would you sell it for £100? 

Astria

jimjames said:

Astria said:

mini_pea said:

 the cost of what you are buying should not be coupled to international issues (Russia).

Imports from Russia made up less than 4% of total UK gas supply last year, so that will have a very minimal effect on the overall gas market price.

Except it won't. Just because we import little Russian gas doesn't mean we're immune from market prices. If Russia cut off supplies to Europe then those will need to be bought from elsewhere which will drive up worldwide prices which impacts the gas we buy. If you could sell your gas for £300 a unit why would you sell it for £100? 

That is true - I don't know how much Russian gas Europe depends on, but it would be daft to import gas from Europe for them to then need to import it from Russia when we can get it directly?

But I know what you mean, if Russia decides to stop exporting gas then everyone will look for somewhere else to buy it from, including us, which will then drive up prices further as demand will exceed supply.