Cost of electricity compared to gas is a crime

ToeandDi

Hello MSE,

We live in a Cornish village, which like many UK villages, does not have a gas supply at all. We have to rely on electricity and this should be no problem, as electricity is more environmentally sound than gas, given the systems are considerably more efficient users of energy. However, the average household usage of energy is estimated by Ofgem to be 2,900kw (34p per kW) of electricity and 12,000kw (10p per kW) of gas per year, and these figures are used to estimate government support. Our all-electric house uses 11,000kW of electricity p.a.  The estimated household average combined usage is £2,500 p.a. but all-electric houses pay £4,000. When the cap is increased in April our costs will rise by £800 compared to a combined usage rise of £500. So, although we use considerably less energy overall, we pay 60% more for our fuel. No one seems to be talking about this but it's not fair: we have no choice and it gets worse with every price increase.

Any ideas?

saveallmymoney

I have gas, but i also do think its too cheap compared to electric.

Thankfully you can generate electricity yourself, which isn't possible with gas.

EssexHebridean

saveallmymoney said:

I have gas, but i also do think its too cheap compared to electric.

Thankfully you can generate electricity yourself, which isn't possible with gas.

The OP may well be able to, in a house - an awful lot of all-electric properties are flats though where it’s not a straightforward as “generate it yourself”. 

I believe I’m correct in saying that for those who use electricity for heating and water the annual estimated electricity figure for thr mythical typical user is increased - to around 4000kWh I think? Having said that, we used 4,100kWh in the past 12 months, and we probably use less for heating than most all electric households would, plus we have gas for cooking (insignificant in comparison with amounts used for heating but mentioned for transparency), so even that uplifted figure seems a bit optimistic to me. 

DE_612183

I don't think it's as straightforward as looking at the price per unit - Gas is harder to control, and uses more "energy" to create heat than electricity - some electricity heating and cooking systems are much more efficient and environmentally friendly than gas.

RobM99

Gas fuelled power stations sit where with you?

tripled

The subsidised price cap is per unit, so although you aren't getting any subsidised gas, you are using more subsidised electricity and aren't losing out.

In terms of cost, all electric properties have traditionally been more expensive, just like those with oil or LPG, nothing has changed in that regard. However, electric heating has lower maintenance costs and there is one less standing charge. With judicious use of Economy 7 and energy efficiency measures, the difference can often be mitigated. Having spent a number of years living in two different well-insulated all-electric flats, one with economy 7 storage heaters and one with panel heaters, I found the energy bills in both to be much cheaper than another poorly insulated flat with gas central heating.

Heat pumps, which are much more efficient that conventional electric heating, provide further opportunities to mitigate any difference in suitable properties, as does having solar and/or battery storage fitted.

[Deleted User]

Power stations turn gas into electricity at about 1/3 efficiency.

That would mean (if power stations were the only place buying gas, and everything else was equal) electricity prices about 3 times gas prices - which is very roughly what we have.

Massively simplified, of course.

dunstonh

We live in a Cornish village, which like many UK villages, does not have a gas supply at all. We have to rely on electricity and this should be no problem, as electricity is more environmentally sound than gas, given the systems are considerably more efficient users of energy. 

Most rural areas in other parts of the country tend to have Oil or LPG as the primary alternatives to gas.     There will be exceptions with some houses, where at some point in time, the homeowner thought (rightfully or wrongfully) it was a good idea to switch to electric.

No one seems to be talking about this but it's not fair:

At different points, all the energy sources will have a period where one is lower or higher than the other.   

Have you considered getting solar panels?

RobM99

[Deleted User] said:

Power stations turn gas into electricity at about 1/3 efficiency.

That would mean (if power stations were the only place buying gas, and everything else was equal) electricity prices about 3 times gas prices - which is very roughly what we have.

Massively simplified, of course.

I doubt that. I worked at a wood-fuelled power station and 42% efficiency was good. With gas, you get a double bang-for-your-buck. You get the heat, obviously, plus the expansion in volume as the gas burns -  a sort of controlled explosion.

Strummer22

[Deleted User] said:

Power stations turn gas into electricity at about 1/3 efficiency.

That would mean (if power stations were the only place buying gas, and everything else was equal) electricity prices about 3 times gas prices - which is very roughly what we have.

Massively simplified, of course.

Combined cycle gas turbines (which make up the bulk of our gas-fired electricity generation) are over 60% efficient. 

A high % of our electricity comes from sources with near enough zero generation cost; nuclear, solar, wind, hydro, and other renewables contributed about 55% of the UK's electricity in 2021. Gas contributed about 40%.

At least the UK has launched a review of how electricity prices are set so we might see it become more decoupled from the price of gas. We can hope! 

[Deleted User]

Strummer22 said:

[Deleted User] said:

Power stations turn gas into electricity at about 1/3 efficiency.

That would mean (if power stations were the only place buying gas, and everything else was equal) electricity prices about 3 times gas prices - which is very roughly what we have.

Massively simplified, of course.

Combined cycle gas turbines (which make up the bulk of our gas-fired electricity generation) are over 60% efficient. 

A high % of our electricity comes from sources with near enough zero generation cost; nuclear, solar, wind, hydro, and other renewables contributed about 55% of the UK's electricity in 2021. Gas contributed about 40%.

At least the UK has launched a review of how electricity prices are set so we might see it become more decoupled from the price of gas. We can hope! 

That’s gas at burner to power at generator terminals.  That wasn’t the efficiency I was talking about (hence the massively simplified comment). I was rolling overall system efficiency into a single number.  I’m aware of CCGT efficiency (and most other station types).

 Also no point talking about generation fuel mix until decoupling happens or CfDs become a lot more widespread.

 Not a great guide, as I noted, but once you take everything into account it’s not a million miles out, and suitable for a “why is electricity more expensive than gas” type question.  The extra details aren’t useful for this answer.