Fuel supplier claims to be on 100% renewables

diystarter7

Listening to the radio the other day a caller rang in and stated as per the title of this thread.

I think he may have been referring to electric possibly living in a flat or out in the country where no gas is pipped in

Are there any suppliers that are 100% supplying renewable energy and if so like the bloke on the radio asked,
why on earth have their prices risen to the max? Surely their costs have not.

gazapc

There have been dozens of existing threads on this exact topic explaining why the price of renewable tariffs have risen (note it is not to do with the "cost" of renewable energy production).

Do a search before opening another thread, but here are some starters on the first page of search results:

https://forums.moneysavingexpert.com/discussion/6381811/renewable-energy

https://forums.moneysavingexpert.com/discussion/6376329/100-renewable

https://forums.moneysavingexpert.com/discussion/6381256/eon-next-100-renewable-energy

[Deleted User]

And yes, there are three. On the old OFGEM cap scheme they were exempt and allowed to charge more because they were even more expensive to run than ‘normal’ suppliers.

BUFF

diystarter7 said:

Listening to the radio the other day a caller rang in and stated as per the title of this thread.

I think he may have been referring to electric possibly living in a flat or out in the country where no gas is pipped in

Are there any suppliers that are 100% supplying renewable energy and if so like the bloke on the radio asked,
why on earth have their prices risen to the max? Surely their costs have not.

Yes, Green Energy UK not only buy 100% renewable electricity for their requirement but also 100% of their gas requirement is "green" (biomethane) sourced. 

[Deleted User]

From the Good Energy website (one of three suppliers that has an Ofgem derogation from the Cap):

Wholesale prices have remained high, with spikes occurring during the beginning of Russia’s invasion of Ukraine. In March, average power prices increased by 51% compared to February – which was driven by a 59% increase in gas prices. Whilst short-term prices for buying gas a ‘day ahead’ have recently dipped, this is not having an impact on the price of supplying gas and electricity to consumers as responsible energy suppliers buy most of the energy months or even seasons in advance — otherwise known as hedging. 

In a recent blog we detailed how the high prices of gas are driving high electricity prices. The UK relies on a ‘merit order’ system that ranks generation types on the cost of generating. 

Renewables are selected first because they are the cheapest to run. But the prices are ultimately set by the ‘marginal’ cost of the last generating unit to be turned off to meet demand in every half hour period, which is often a gas power plant with high marginal costs. 

BEIS is in the process of consulting on whether marginal costing should be retained.

[Deleted User]

They’re about thirty five years out of date with that explanation.

 What actually happens often has the same effect, but for very different technical reasons.

diystarter7

Thank you all and I apologise for not seeing the previous threads on this subject.