Russia limiting supplies are just one of the reasons not the only reason.People know that the reason for energy prices rising is that Russia are limiting their exports of gas. A little known fact is that we import less than 4% of our gas from Russia, and are net exporters of gas in the form of LNG to Europe.
Obviously the market price of gas has risen dramatically and it has affected electricity prices because a lot of electricity is produced from gas fired power stations, but in UK there is no logical reason for such dramatic rises. You can see on the TV adverts for the various electricity companies that a significant amount of our electricity is produced from renewables, (solar and wind turbines) There is something else going on that doesn't fully explain the dramatic predictions.
I think you are spot on, the price of electricity that Retail Energy Companies buy and then sell onto end consumers is driven by the most expensive unit cost available which I believe at this time is Gas.I thought that electricity prices were linked to those of gas. Therefore it doesn’t really matter where the electricity is produced or the cost of production, if gas prices go up then so does electricity. I would have thought that the price of electricity has no need to rise, except for its link to gas.
It's compicated, part of the reason is the competition for gas globally due to re-emergence of industry post COVID, but by far the biggest reason is Russia, not just their policy on supply, but the desire of some countries to wean themselves of dependency on Russian gas. If you know of any other legitimate reason for wholesale prices to go through the roof I would be interested to know.Russia limiting supplies are just one of the reasons not the only reason.
It's the Merit order,I think you are spot on, the price of electricity that Retail Energy Companies buy and then sell onto end consumers is driven by the most expensive unit cost available which I believe at this time is Gas.
Couple that with the fact that Centrica took the decision to close down the Rough Gas Field Storage facility which means that we in the UK are much more vulnerable to the current market prices than other countries.
It's all great news for Gas Wholesalers like BP and Shell whilst the current Government delays the much needed reform of the electricity market and the prices charged which is bloomin depressing.
On other hand, Gyökeres looks like he's in great form so far this season. That goal against Sunderland was something else
4 other reasonsIt's compicated, part of the reason is the competition for gas globally due to re-emergence of industry post COVID, but by far the biggest reason is Russia, not just their policy on supply, but the desire of some countries to wean themselves of dependency on Russian gas. If you know of any other legitimate reason for wholesale prices to go through the roof I would be interested to know.
News (BBC?) tonight
Energy bills now predicted to hit £6,000 next year
The latest dire predictions are even worse than Cornwall Insight's fresh warnings.www.birminghammail.co.uk
The prediction hasn’t even been made by the BBC.More fool you for believing the BBC
Neither do I but I haven't seriously worked my bolloxs off all my life to be cold and hungry in my autumn years but I'm fucked if I'm going to be lining any energy company's pockets to the tune of north of £4k pa.Our estimated annual gas and electric bill is around £4700.
No, I don’t live in Buckingham Palace.
Not sure where I said I believed it. Guilty of repeating it, I agree.More fool you for believing the BBC
We don't really have reserves, as we have very limited storage capacity, we hold enough gas typically for 4 or 5 winter days.4 other reasons
Spring 2021 one of the coldest on record. We used a high percentage of our reserves. These have not been replaced yet.
2021 Spring solar and wind generation was extremely low which also caused us to use our reserves.
South America is now using 30% more electricity than before Covid.
Asia is using 40% more.
Isn't our stadium built on an old gas storage site?!?We don't really have reserves, as we have very limited storage capacity, we hold enough gas typically for 4 or 5 winter days.
‘Relying on luck’: why does the UK have such limited gas storage?
Analysis: Closure of huge storage plant, misplaced optimism in fracking and demise of North Sea gas have all played a partwww.theguardian.com
It's not ours ;-)Isn't our stadium built on an old gas storage site?!?
It was.Isn't our stadium built on an old gas storage site?!?
Bet that was an interesting climb.It was.
Went on top of the gas holder a few times to check the emergency telephone was working in my BT days.
Epic with the smell of gas in your nostrils all day long.Bet that was an interesting climb.
I used to have to go up the floodlight pylons at Highfield rd every season for years to do the ground safety certificateIt's not too bad when you are up there, it's going up the spiral ladder around the outside that's a bit nerve-racking if you don't like heights
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