Thinking "outside the box" British energy prices Vs comparable markets

AlvyLad

Whilst most of us are "in the game" of tariff and "savings" with ever so many suppliers etc, I just can not come to terms it being at least double the price of IE Spain prices, never mind paying "standing charges" and don't get me started on "exit-fee" scams.

https://www.energyprices.eu/electricity/spain

Am I wrong or is the whole system, pricing is wrong?

QrizB

Comparing daily spot prices isn't especially helpful. A couple of days ago, UK electricity spot prices were negative for most of the day.

mark_cycling00

You think that every supplier goes out every day and purchases all their customers energy on that day using the current 30 min spot price?

The bulk is bought months in advance in the futures market, minor adjustments to the demand schedule has another market and any balancing needed on the day is done via the spot price which varies considerably.

Spain has a very cheap fixed price deal with Algeria for gas which you could argue is unfair on Algeria.

Spain has more sun for solar and areas of consistent onshore wind. Being a leader in this area and generating cheap electricity that the UK can't match due to geography. Offshore wind and tidal is a different matter.

The UK's high prices are down to decades of government incompetence on both political sides. Cancelling nuclear, shutting down north sea upstream and taking 10 years to approve and build new wind farms and neglecting the grid.

AlvyLad

https://forums.moneysavingexpert.com/discussion/comment/82029378#Comment_82029378

Okay

https://www.expatistan.com/price/utilities/santa-cruz-de-tenerife

Woodstok2000

https://forums.moneysavingexpert.com/discussion/6671859/thinking-outside-the-box-british-energy-prices-vs-comparable-markets

Wages are much lower in Spain, and they do also have a standing charge to pay, although its calculated differently (potencia).

Their grid relies much less on gas and has a higher proportion of renewable, which also contributes to the lower cost.

We should also bear in mind you get what you pay for, and their whole grid blew up just recently....

Woodstok2000

https://forums.moneysavingexpert.com/discussion/comment/82029394#Comment_82029394

The cost quoted on that site is not that far off the average uk spend for a flat according to ofgem. Bearing in mind uk usage is higher due to the weather, it seems comparable.

MWT

https://forums.moneysavingexpert.com/discussion/comment/82029396#Comment_82029396

Wages are much lower in Spain, and they do also have a standing charge to pay, although its calculated differently (potencia).

That is a very important difference as it is calculated based on your maximum permitted kW draw which can cause your power to go off if you exceed the limit and don't correct it quick enough…

AlvyLad

https://forums.moneysavingexpert.com/discussion/comment/82029403#Comment_82029403

Half is lot, double.

I'll ask my friends, that live in France now bit more in detail, but couple of years ago, we had a chat and and he did say, that their bills are (the same as in example in Spain) where half to what they used to pay for twice smaller property back home (Brighton mid terraced two up, two down). Didn't pay attention at the time, but now I'm thinking how come, as IE EDF is French company, that operates in both countries.

Woodstok2000

https://forums.moneysavingexpert.com/discussion/comment/82029437#Comment_82029437

Your link has the average utility cost for a 2 bed flat in Spain as 114 euro per month. Ofgem says the same for the UK is £120-140. Thats about 25% more, nothing like double.

Baldytyke88

Our electricity prices are the same as in Germany, which is a comparable country to the UK.

TroubledTarts

You are not comparing apples with apples unfortunately. You cannot just take a source and match it to different countries.

Different countries have different base or median salaries. Average salary in Spain is £23-24k UK is £37-39k as one example where there would be factors to build into agreeing and disagreeing with such a badly investigated statement.

We can go on comparing and as to why but I simple terms you are barking up the wrong tree.....again